<p>This research examines how firms apply quantity discounts to tied versus untied goods in volume bundles, focusing on shaving razors and shaving cream. Tied goods require joint use (e.g., razors and blades), whereas untied goods are consumed independently (e.g., shaving cream). The analysis tests whether bundling discounts differ across these categories. Market data from major online retailers show consistent quantity discounts for shaving cream bundles but not for razor bundles. The findings indicate that quantity discounts are less common for tied goods, highlighting product interdependence as a key factor shaping firms’ pricing strategies.</p>

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Volume bundle pricing for tied goods and untied goods in the marketplace

  • Kwanho Suk

摘要

This research examines how firms apply quantity discounts to tied versus untied goods in volume bundles, focusing on shaving razors and shaving cream. Tied goods require joint use (e.g., razors and blades), whereas untied goods are consumed independently (e.g., shaving cream). The analysis tests whether bundling discounts differ across these categories. Market data from major online retailers show consistent quantity discounts for shaving cream bundles but not for razor bundles. The findings indicate that quantity discounts are less common for tied goods, highlighting product interdependence as a key factor shaping firms’ pricing strategies.