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Unformatted text preview: = 2(5 2 0.5) + (4.50 2) = 7.50 Conclusion Pure bundling is superior to individual prices. Mixed bundling is superior to pure bundling. The intuition is that it is inefficient to sell a bundle to C because C values the fries at less than the cost of the fries....
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This note was uploaded on 01/03/2011 for the course COMM 290 taught by Professor Brian during the Winter '09 term at The University of British Columbia.
- Winter '09