Large-Scale Bundle-Size Pricing: A Theoretical Analysis

References

• Abdallah T (2019) On the benefit (or cost) of large-scale bundling. Production Oper. Management 28(4):955–969.Crossref, Google Scholar
• Adams WJ , Yellen JL (1976) Commodity bundling and the burden of monopoly. Quart. J. Econom. 90(3):475–498.Crossref, Google Scholar
• Armstrong M (1999) Price discrimination by a many-product firm. Rev. Econom. Stud. 66(1):151–168.Crossref, Google Scholar
• Arora N , Dreze X , Ghose A , Hess JD , Iyengar R , Jing B , Joshi Y , et al. . (2008) Putting one-to-one marketing to work: Personalization, customization, and choice. Marketing Lett. 19(3-4):305–321.Crossref, Google Scholar
• Babaioff M , Nisan N , Rubinstein A (2018) Optimal deterministic mechanisms for an additive buyer. Preprint, submitted April 18, https://arxiv.org/pdf/1804.06867.pdf.Google Scholar
• Babaioff M , Immorlica N , Lucier B , Weinberg SM (2014) A simple and approximately optimal mechanism for an additive buyer. 2014 IEEE 55th Annual Sympos. Foundations Comput. Sci. (IEEE, Philadelphia, PA, USA), 21–30.Google Scholar
• Bakos Y , Brynjolfsson E (1999) Bundling information goods: Pricing, profits, and efficiency. Management Sci. 45(12):1613–1630.Link, Google Scholar
• Berkowitz D (2016) Scribd announces major changes to subscription service. Digital Book World (February 16), http://bit.ly/2MIWFYC.Google Scholar
• Bhaskara V (2015) Airlines are giving customers exactly what they want. Forbes (January 14), https://www.forbes.com/sites/airchive/2015/01/14/actually-airlines-are-giving-customers-exactly-what-they-want/?sh=431eb28429bb.Google Scholar
• Billingsley P (1999) Convergence of Probability Measures (John Wiley and Sons, New York).Crossref, Google Scholar
• Briest P , Röglin H (2010) The power of uncertainty: Bundle-pricing for unit-demand customers. Jansen K, Solis-Oba R, eds., WAOA: Internat. Workshop Approximation Online Algorithms (Springer, Berlin), 47–58.Google Scholar
• Chen H , Hu M , Perakis G (2019) Distribution-free pricing. Preprint, submitted October 26, http://dx.doi.org/10.2139/ssrn.3090002.Google Scholar
• Chen X , Matikas G , Paparas D , Yannakakis M (2018) On the complexity of simple and optimal deterministic mechanisms for an additive buyer. Proc. Twenty-Ninth Annual ACM-SIAM Sympos. Discrete Algorithms (Society for Industrial and Applied Mathematics, Philadelphia), 2036–2049.Google Scholar
• Chu CS , Leslie P , Sorensen A (2011) Bundle-size pricing as an approximation to mixed bundling. Amer. Econom. Rev. 101(1):263–303.Crossref, Google Scholar
• Cramér H (1938) Sur un nouveau théoreme-limite de la théorie des probabilités. Actualités scientifiques et industrielles 736(115):5–23.Google Scholar
• Cramton P , Shoham Y , Steinberg R (2006) Combinatorial Auctions (MIT Press, Cambridge, MA).Google Scholar
• Cui Y , Duenyas I , Sahin O (2018) Unbundling of ancillary service: How does price discrimination of main service matter? Manufacturing Service Oper. Management 20(3):455–466.Link, Google Scholar
• Daskalakis C , Deckelbaum A , Tzamos C (2014) The complexity of optimal mechanism design. Proc.Twenty-Fifth Annual ACM-SIAM Sympos. Discrete Algorithms (Society for Industrial and Applied Mathematics, Philadelphia), 1302–1318.Google Scholar
• Daskalakis C , Deckelbaum A , Tzamos C (2017) Strong duality for a multiple-good monopolist. Econometrica 85(3):735–767.Crossref, Google Scholar
• Ellison G (2005) A model of add-on pricing. Quart. J. Econom. 120(2):585–637.Google Scholar
• Elmachtoub AN , Hamilton M (2017) The power of opaque products in pricing. Preprint, submitted August 25, http://dx.doi.org/10.2139/ssrn.3025944.Google Scholar
• Embrechts P , Klüppelberg C , Mikosch T (2013) Modelling Extremal Events: For Insurance and Finance , vol. 33 (Springer Science & Business Media, Berlin).Google Scholar
• Feller W (1971) An Introduction to Probability and Its Applications , vol. 2 (Wiley, New York).Google Scholar
• Flint J (2015) Why does the cable-TV bundle exist anyway? Wall Street Journal (June 8), https://www.wsj.com/articles/why-does-the-cable-tv-bundle-exist-anyway-1433807825.Google Scholar
• Freeman K , Spenner P , Bird A (2012) What do consumers really want? Simplicity. Harvard Bus. Rev. https://hbr.org/2012/05/what-do-consumer-really-want-s?autocomplete=true.Google Scholar
• Geng X , Stinchcombe MB , Whinston AB (2005) Bundling information goods of decreasing value. Management Sci. 51(4):662–667.Link, Google Scholar
• Giannakopoulos Y , Koutsoupias E (2018) Duality and optimality of auctions for uniform distributions. SIAM J. Comput. 47(1):121–165.Crossref, Google Scholar
• Hart S , Nisan N (2017) Approximate revenue maximization with multiple items. J. Econom. Theory 172(2017):313–347.Crossref, Google Scholar
• Hitt LM , Chen P-y (2005) Bundling with customer self-selection: A simple approach to bundling low-marginal-cost goods. Management Sci. 51(10):1481–1493.Link, Google Scholar
• Iyengar R , Jedidi K , Essegaier S , Danaher PJ (2011) The impact of tariff structure on customer retention, usage, and profitability of access services. Marketing Sci. 30(5):820–836.Link, Google Scholar
• Karp G (2013) Airline fee frenzy: Charges add up to confusion. Chicago Tribune (July 14), https://www.chicagotribune.com/business/ct-xpm-2013-07-14-ct-biz-0714-fees-20130714-story.html.Google Scholar
• Lambrecht A , Skiera B (2006) Paying too much and being happy about it: Existence, causes, and consequences of tariff-choice biases. J. Marketing Res. 43(2):212–223.Crossref, Google Scholar
• Lieb EH , Loss M (2001) Analysis, Second Edition, Graduate Studies in Mathematics, vol. 14. (American Mathematical Society, Providence, RI).Google Scholar
• Liptser R , Shiryayev AN (2012) Theory of Martingales , vol. 49 (Springer Science & Business Media, Berlin).Google Scholar
• Ma W , Simchi-Levi D (2015) Reaping the benefits of bundling under high production costs. Preprint, submitted September 8, http://dx.doi.org/10.2139/ssrn.2700394.Google Scholar
• Manelli AM , Vincent DR (2006) Bundling as an optimal selling mechanism for a multiple-good monopolist. J. Econom. Theory 127(1):1–35.Crossref, Google Scholar
• Oi WY (1971) A Disneyland dilemma: Two-part tariffs for a Mickey Mouse monopoly. Quart. J. Econom. 85(1):77–96.Crossref, Google Scholar
• Owram K (2014) Airlines go à la carte: Why travellers should get used to baggage fees and more ‘unbundling. ’ Financial Post (September 20), https://financialpost.com/transportation/airlines-go-a-la-carte-why-travellers-should-get-used-to-baggage-fees-and-more-unbundling.Google Scholar
• Pekeč A , Rothkopf MH (2003) Combinatorial auction design. Management Sci. 49(11):1485–1503.Link, Google Scholar
• Petrov V (1975) Sums of Independent Random Variables (Springer Science & Business Media, Berlin).Crossref, Google Scholar
• Popper B (2015) The great unbundling: Cable TV as we know it is dying. The Verge (April 22), https://www.theverge.com/2015/4/22/8466845/cable-tv-unbundling-verizon-espn-apple.Google Scholar
• Reny PJ , Hart S (2014) Maximal revenue with multiple goods: Nonmonotonicity and other observations. Theoret. Econom. 10(3):893–922.Google Scholar
• Spence AM (1980) Multi-product quantity-dependent prices and profitability constraints. Rev. Econom. Stud. 47(5):821–841.Crossref, Google Scholar
• Stigler GJ (1963) United States v. Loew’s Inc.: A note on block-booking. Supreme Court Rev. 1963:152–157.Crossref, Google Scholar
• Stigler SM (1974) Linear functions of order statistics with smooth weight functions. Ann. Statist. 2(4):676–693.Crossref, Google Scholar
• Train KE , Ben-Akiva M , Atherton T (1989) Consumption patterns and self-selecting tariffs. Rev. Econom. Statist. 71(1):62–73.Crossref, Google Scholar
• Van der Vaart AW (2000) Asymptotic Statistics , vol. 3 (Cambridge University Press, Cambridge, UK).Google Scholar
• Vasel K (2016) Spirit airlines scores dead last in customer satisfaction. CNN Money(April 26). https://money.cnn.com/2016/04/26/pf/best-and-worst-airlines-customer-satisfaction/index.html.Google Scholar
• Venkatesh R , Mahajan V (2009) The design and pricing of bundles: A review of normative guidelines and practical approaches. RaoVR, ed. Handbook of Pricing Research in Marketing (Edward Elgar Publishing Limited, Cheltenham, UK), 232–257.Crossref, Google Scholar
• Wang R , Dada M , Sahin O (2019) Pricing ancillary service subscriptions. Management Sci. 65(10):4712–4732.Link, Google Scholar
• Wilson RB (1993) Nonlinear Pricing (Oxford University Press, Oxford, UK).Crossref, Google Scholar
• Xue Z , Wang Z , Ettl M (2015) Pricing personalized bundles: A new approach and an empirical study. Manufacturing Service Oper. Management 18(1):51–68.Link, Google Scholar