Exercise 16 : Mixed bundling

Seller offer : p_T = _____ p_S = _____ p_B = ______

Buyer type	Consumer surplus	Buyer Choice
T	S	Bundle
Romantic
Neo
Tch lover
Soph

= N(__) + N(__) + N(__) + N(__) = _____

Bundling and Mixed bundling example N = Number of each type, MC = $2.50 Concert Romantic Neo-classical Tchaikovsky lover Sophisticate Tchaikovsky $8 $5 $9 $1 Stravinsky $4 $5 $1 $9 Bundle $12 $10 $10 $10 Tchaikovsky Stravinsky Bundle 12 10 8 5.00 1 2.50 2.50 N 2N 3N 4N N 2N 3N 4N N 4N PT = 9 AT= (9-2.5)XN Ps = 9 TS = (9-2.5) XN PB = 12 1 = (12-5)XN PT = 8 TUT = (8-2.5)x2N Ps = 5 Its = (5-2.5)x2N PB = 10 n = (10-5)x4N PT = 5 AT= (5-2.5)x3N Ps = 4 IS = (4-2.5)x3N Sell Individually : n = 11N + 6.5N =17.5N Bundle: It = 20N Exercise 16 : Mixed bundling Seller offer : PI.= PS = PB= Consumer surplus Buyer type Buyer T S Bundle Choice Romantic Neo Tch lover Soph I = N ( ) + NC ) + NO) + NO=