Bundling

Product bundling- is a marketing strategy that involves offering several products for sale as one combined product (a.k.a. package deal)
• Most suitable for high volume, high margin products- esp. “informational products”
• May be seen as unfair use of market power because it limits the choices available to the customer ->product tying

Pure Bundling	Mixed Bundling
- Entire bundle or nothing	- Choice between entire bundle or one of the separate parts of the bundle

Tying- the practice of making the sale of one good (the tying good) to the de facto or de jure customer conditional on the purchase of a second distinctive good (the tied good)
Tying and the law:
• It is often illegal when the products are not naturally related
• Can be considered anti-competitive practice
** consumers are harmed by being forced to buy an undesired good (the tied good) in order to purchase a good they actually want (the tying good), and so would prefer that the goods be sold separately
• U.S.- most states have laws against tying and the U.S. Department of Justice enforces federal laws against tying through its Antitrust Division
• E.U.- Antitrust laws against mixed bundling and tying. They require less proof of customer detriment than in the U.S.