Dissertation/Thesis Abstract

Bundling information goods: The case of e-journals
by Tan, Yong, M.Sc., Singapore Management University (Singapore), 2007, 45; 1478229
Abstract (Summary)

With the development of the Internet, e-business has become popular. Increasingly, e-journals are being sold via the Internet. E-Journals have two main characteristics: one is the low marginal cost associated with access; the other is the large number of items. For the commercially motivated seller, the issue of bundling a large number of low marginal cost items so as to maximize profits needs to be dealt with. In this thesis, a solution by way of an intermediate bundle is proposed. It is found that the profit obtained under the proposed procedure is 4% to 5% higher than that under the Chuang-Sirbu procedure, which is currently adopted by many sellers. Furthermore, when the number of products involved is not extremely large, the proposed procedure yields a profit level that is closer to the first price discrimination profit level than the Armstrong two-part tariff procedure. In this thesis, a heuristic rule to facilitate the determination of the optimal intermediate bundle size is also proposed. This is designed to avoid the lengthy simulation procedure that will be needed otherwise.

Indexing (document details)
Advisor: Chua, Vincent
School: Singapore Management University (Singapore)
Department: School of Economics
School Location: Republic of Singapore
Source: MAI 48/06M, Masters Abstracts International
Subjects: Marketing, Economics, Web Studies, Mass communications
Keywords: Aggregation, Bundling, Digital goods, Information goods, Pricing, Publishing industry
Publication Number: 1478229
ISBN: 978-1-124-08113-7
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