bundle

In marketing, product bundling is offering several products for sale as one combined product. It is a common feature in many imperfectly competitive product markets. Firms in telecommunications, financial services, health care, and information industries frequently offer products in bundles. This is again common in the software business (for example: bundle a word processor, a spreadsheet, and a database into a single office suite), in the cable television industry (for example, basic cable in the United States generally offers many channels at one price), and in the fast food industry in which multiple items are combined into a complete meal. A bundle of products may be called a package deal or a compilation or an anthology. It has been identified settings in which bundling can be used by firms to discriminate among consumers or to extend market power into a related product market. Bundling in appropriate proportions is privately profitable, reduces a rival’s profits and overall welfare, and may drive rivals from the market.

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