Bundling Information Goods: Pricing, Profits, and Efficiency
Management Science
Bundling strategy in base-supplemental goods markets: the case of Microsoft
European Journal of Information Systems
Bundling and Competition on the Internet
Marketing Science
Does Bundling Add-Ins Help Consumers?
HICSS '03 Proceedings of the 36th Annual Hawaii International Conference on System Sciences (HICSS'03) - Track 8 - Volume 8
Comparison of Software Quality Under Perpetual Licensing and Software as a Service
Journal of Management Information Systems
Price Mechanism for Knowledge Transfer: An Integrative Theory
Journal of Management Information Systems
The Optimal Number of Versions: Why Does Goldilocks Pricing Work for Information Goods?
Journal of Management Information Systems
Use of RSS feeds to push online content to users
Decision Support Systems
Research Note---Analyzing Pricing Strategies for Online Services with Network Effects
Information Systems Research
The Pricing Strategy Guideline Framework for SaaS Vendors
International Journal of Strategic Information Technology and Applications
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Software such as operating systems, word processing, spreadsheets, graphics, and others often serves as a base for a number of third-party add-in products or plug-ins. These add-ins enhance the functionality of the base product. Unless protected by patents, these add-ins can potentially be bundled into the base software. The impact of this bundling on the profits of the base software producer and the consumer depends on the proportion of consumers that value the add-in and the penalty that some consumers incur from finding only a bundled product available when they do not desire the add-in. Using a model of the market, we show that the price of the bundle will be less than the sum of the prices of the base and add-in software when they are sold separately. We also show that the total consumer surplus and the social welfare increase if the base software producer's profit increases with bundling.