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There is a huge difference between the TV bundle and car as a bundle - the marginal cost of serving one customer for the TV bundle is near zero, for the car bun
by zby 7y ago
There is a huge difference between the TV bundle and car as a bundle - the marginal cost of serving one customer for the TV bundle is near zero, for the car bundle it is not. When someone buys a TV bundle just for news it does not cost anything more to offer him also sports, but offering a SUV for the price of a cheap car to drive to work would cost the seller a lot.
The car as a bundle is maybe interesting thing to think about - but it is an order of magnitude less important than when thinking about bundling zero marginal cost goods.
- neogodless 7y agoI'm a little sour on the whole "benefits customers" half of the equation. If I love history and have zero use for sports, I don't benefit by paying $2 more. So it can benefit some customers, but it's not universal. With a car, they couldn't charge much for just Bluetooth or heated seats, and not enough people would pay for bigger wheels on their own. But then they bundle them and no on wants to pass on the first two so they accept the higher cost of the third, and the seller nets more overall profit. Still don't really see it as a benefit for most buyers though.