revenue Archives

The Challenge of Revenue Sharing with Bundled Pricing: An Application to Music

Bundling can increase revenue and profits relative to selling products on a standalone basis, and this is an especially attractive strategy for zero-marginal-cost information products. Despite the clear benefits of bundling, it has one major problem: bundling produces revenue that is not readily attributable to particular pieces of intellectual property.…Read More

Revenue Management with Strategic Customers: Last-Minute Selling and Opaque Selling

Companies in a variety of industries (e.g., airlines, hotels, theaters) often use last-minute sales to dispose of unsold capacity. Although this may generate incremental revenues in the short term, the long-term consequences of such a strategy are not immediately obvious.…Read More