Analysis of Bundling Homogeneous Content Product in Different Formats

Author:

Chen Li1

Affiliation:

1. Fayetteville State University, Fayetteville, USA

Abstract

Content digitalization brings products with homogeneous content but in different formats (digital format and physical format) together. Recently retailers in the online book industry started bundling programs such as Amazon Matchbook, giving print book buyers a free or deeply discounted e-book version. While this bundling strategy is attractive to consumers, it potentially allows consumers to resell the print book in the bundle, which might cannibalize retailers' sales. Consequently, it will influence all participants in the industry including the publisher, the retailers, and the consumers. Using a two-period model, the authors investigate the impacts of this strategy under both monopoly and competition. The authors compute the equilibrium outcome for both scenarios. The findings show that (1) under monopoly, both the publisher and the retailer sell at a higher rate; consumers also see higher total surplus; (2) under competition, the retailer who provides bundling will gain a competitive advantage. This study indicates that the bundling model yields a win-win strategy.

Publisher

IGI Global

Subject

Information Systems,Management Information Systems

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3