The Dynamic Effects of Bundling as a Product Strategy

Several key questions in bundling have not been empirically examined in marketing: Is mixed bundling more effective than pure bundling or pure components? Does correlation in consumer valuations make bundling more or less effective? Does bundling serve as a complement or substitute to network effects? To address these questions, we develop a consumer-choice model from microfoundations to capture the essentials of our setting, the handheld video...