ERIC Number: EJ744420
Record Type: Journal
Publication Date: 2006
Exploring Bundling Theory with Geometry
Eckalbar, John C.
Journal of Economic Education, v37 n1 p68-82 Win 2006
The author shows how instructors might successfully introduce students in principles and intermediate microeconomic theory classes to the topic of bundling (i.e., the selling of two or more goods as a package, rather than separately). It is surprising how much students can learn using only the tools of high school geometry. To be specific, one can prove that with independently distributed reservation prices, pure bundling raises both profits and consumers' surplus. The author also explores the topic of mixed bundling (i.e., when both bundles and separate sales are conducted).
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Publication Type: Journal Articles; Reports - Descriptive
Education Level: N/A
Authoring Institution: N/A