Chapter 14-Introduction Selling different products in a single package e Definitions ° Bundling→> fixed proportions lvs Block Pricing] Pure bundling: only the package is available Mixed bundling: combined products are also sold separately Example: software suite Tying proportions might vary in the mix of goods EXample: printer and cartridges ● Rationa|es Strong complementarities between goods Supply side: cost efficiencies Demand side: Entry-deterrent strategy >chapter 8 Price discrimination device - what we study here e Wen Cao© Wen Cao 3 Selling different products in a single package • Definitions • Bundling  fixed proportions [VS Block Pricing] • Pure bundling: only the package is available • Mixed bundling: combined products are also sold separately • Example: software suite • Tying  proportions might vary in the mix of goods • Example: printer and cartridges • Rationales • Strong complementarities between goods • Supply side: cost efficiencies • Demand side: • Entry-deterrent strategy  chapter 8 • Price discrimination device  what we study here. Chapter 14 - Introduction