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Assumptions for bundling

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An insurance company is considering whether they could more profitably offer home and auto insurance bundled together. There are two types of insurance customers, cheap ones and high rollers. Their willingness to pay for the two types of insurance is given below:

Customer Type

Home Owners Insurance

Auto Insurance

High Roller

$100

$50

Cheap

$75

$25

Does this meat all of the assumptions for bundling? Why or why not?

Reference no: EM133124996

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