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Bundling in political economy is a type of product bundling in which the "product" is a candidate in an election who markets his or her bundle of attributes and political positions to the voters. For example, a political candidate may market herself as a centrist candidate by ensuring she/he has centrist social, economic, and law enforcement ...
Pricing is the process whereby a business sets the price at which it will sell its products and services, and may be part of the business's marketing plan. In setting prices, the business will take into account the price at which it could acquire the goods, the manufacturing cost, the marketplace, competition, market condition, brand, and ...
For instance, a distinction must be made between product bundling, which is a legal market strategy, and product tying, which violates antitrust law. Some advocates of laissez-faire capitalism (such as Monetarists , some Neoclassical economists , and the heterodox economists of the Austrian school ) reject the term, seeing all "anti-competitive ...
Tying (informally, product tying) is the practice of selling one product or service as a mandatory addition to the purchase of a different product or service. In legal terms, a tying sale makes the sale of one good (the tying good) to the de facto customer (or de jure customer) conditional on the purchase of a second distinctive good (the tied ...
Razor and blades model. A razor with its attached blade. With the razor and blades model, the razor would be inexpensive but the blades would come at a significant cost. The razor and blades business model[ 1] is a business model in which one item is sold at a low price (or given away for free) in order to increase sales of a complementary good ...
Economies of scope is an economic theory stating that average total cost of production decrease as a result of increasing the number of different goods produced. [ 2] For example, a gas station that sells gasoline can sell soda, milk, baked goods, etc. through their customer service representatives and thus gasoline companies achieve economies ...
A two-part tariff (TPT) is a form of price discrimination wherein the price of a product or service is composed of two parts – a lump-sum fee as well as a per-unit charge. [1] [2] In general, such a pricing technique only occurs in partially or fully monopolistic markets. It is designed to enable the firm to capture more consumer surplus than ...
v. t. e. Price fixing is an anticompetitive agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain the market conditions such that the price is maintained at a given level by controlling supply and demand . The intent of price fixing may be to push the price ...