The publisher Elsevier uses mixed-bundling pricing strategy. The publisher sells a university access to a bundle of
Question:
Suppose a university's willingness to pay for each of the journals is vA = $2,000, vB = $1,100, and vC = $1,400.
a. If the publisher offers the journals only at the individual subscription prices, to which journals does the university subscribe?
b. Given these individual prices, what is the highest price that the university is willing to pay for the three journals bundled together?
c. Now suppose that the publisher offers the same deal to a second university with willingness to pay vA = $1,800, vB = $100, and vC = $2,100. With the two universities, calculate the revenue maximizing individual and bundle prices?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Microeconomics Theory and Applications with Calculus
ISBN: 978-0133019933
3rd edition
Authors: Jeffrey M. Perloff
Question Posted: