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Study: How Piracy Can Unravel Company Profits in Product Bundling
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A reduced elasticity increases the pricing power of the seller when there is no piracy, Lahiri explained.
Such piracy can, indeed, make bundling unprofitable.” Dr. Atanu Lahiri, associate professor of information systems in the Naveen Jindal School of ManagementIs Bundling Effective?
“If pirated content is just as good as the legal counterpart in terms of quality, piracy is highly attractive to consumers,” Lahiri said.
Such piracy can, indeed, make bundling unprofitable.”In general, mixed bundling — the strategy of offering a bundle alongside individual products — is superior to pure bundling.
Manufacturers of information goods should reassess the efficacy of bundling, particularly in markets where piracy is a serious concern, Lahiri said.
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'information'
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'product'
'piracy'
'profits'
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'consumers']