Question: 10 points QUESTION 9 1. Time Warner could offer the History Channel (H) and Showtime (S) individually or as a bundle of both. Suppose the

10 points QUESTION 9 1. Time Warner could offer the History

10 points QUESTION 9 1. Time Warner could offer the History Channel (H) and Showtime (S) individually or as a bundle of both. Suppose the reservation prices of customers 1 and 2 (the highest prices they are willing to pay) are presented in the boxes below. The cost to Time Warner is $1 per customer for licensing fees. Preferences Showtime History Chanel Customer 1 9 2 Customer 2 3 Should Time Warner bundle if everyone likes Showtime more than the History Channel, i.e., preferences are positively correlated? Both: A Ward -D

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