Show simple item record

dc.contributor.authorHui, Wendy
dc.contributor.authorYoo, B.
dc.contributor.authorChoudhary, V.
dc.contributor.authorTam, K.
dc.date.accessioned2017-03-15T22:06:11Z
dc.date.available2017-03-15T22:06:11Z
dc.date.created2017-02-24T00:09:04Z
dc.date.issued2012
dc.identifier.citationHui, W. and Yoo, B. and Choudhary, V. and Tam, K. 2012. Sell by Bundle or Unit?: Pure Bundling Versus Mixed Bundling of Information Goods. Decision Support Systems. 53 (3): pp. 517-525.
dc.identifier.urihttp://hdl.handle.net/20.500.11937/49592
dc.description.abstract

Pure bundling and mixed bundling are two popular pricing strategies for information goods. Pure bundling offers only the product bundle, whereas mixed bundling offers both the bundle and the individualcomponents of the bundle. This paper extends prior research on bundling, which usually assumes consumer heterogeneity along a single attribute of the consumer. However, an individual consumer's demand function can be expressed as the interaction of the intercept and the slope of the demand function. We allow for consumer heterogeneity along both these dimensions. The initial willingness-to-pay (IWTP) of a consumer captures the consumer's willingness to pay for the first unit of the product while the appetite (APP) of a consumer captures the quantity consumed when the product is free. We find that these two dimensions of heterogeneity have opposing effects. APP heterogeneity encourages the adoption of mixed bundling while IWTP heterogeneity moderates the relationship between APP heterogeneity and the preference for mixed bundling in favor of pure bundling. Our results also help explain why sellers tend to change pricing schemes over time.

dc.publisherElsevier Publications
dc.subjectInformation goods
dc.subjectPure bundling
dc.subjectMixed bundling
dc.titleSell by Bundle or Unit?: Pure Bundling Versus Mixed Bundling of Information Goods
dc.typeJournal Article
dcterms.source.volume53
dcterms.source.number3
dcterms.source.startPage517
dcterms.source.endPage525
dcterms.source.issn01679236
dcterms.source.titleDecision Support Systems
curtin.departmentSchool of Information Systems
curtin.accessStatusFulltext not available


Files in this item

Thumbnail

This item appears in the following Collection(s)

Show simple item record