What effect does bundling have on consumer surplus

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Reference no: EM133231719

Assignment:

Bundling Example with Analysis

1. Locate examples of Bundling in the real world

2. Choose one example which features a "special bundled price" for a group of items which are also sold separately.

3. Attach an image of the flyer/promotion/advertisement which describes the bundling to a word document.

4. Complete the following questions in the word document by including the prompts and your written answers:

What are the components of the bundle?
What are the individual prices for the components when sold separately?
Why does the firm bundle in this way?
What effect does bundling have on consumer surplus?
Should bundling and other price discrimination schemes be illegal? Why or why not?
When Is Pure Bundling Optimal?

Bundling is a marketing strategy that joins products or services together in order to sell them as a single combined unit. Bundling allows the convenient purchase of several products and/or ...

Reference no: EM133231719

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