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What is Customized Bundle Pricing Strategies about?

This paper explores customized bundle pricing for information goods using a nonlinear mixed-integer programming approach, demonstrating that this method can enhance seller profits and consumer welfare compared to pure bundling or individual sales. The analysis reveals that the number of goods positively valued by consumers is more critical than their valuation functions in determining optimal pricing schemes. Customized bundling outperforms simpler pricing strategies even when consumer valuations are not fu

Author

Panca Pribadi

Language

EN