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Question 8 of 9

Question 8 of 9

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Time Warner could offer the History Channel (H) and Showtime (S) individually or as a bundle of both.

Suppose the reservation prices of customers 1 and 2 (the highest prices they are willing to pay) are presented in the boxes below.

The cost to Time Warner is $1 per customer for licensing fees.

Preferences

Showtime History Chanel

Customer 1 9 2

Customer 2 3 8

Should Time Warner bundle or sell separately? Your answer needs to include the unbundled and bundled profits.

Path: p Words:0

Question 8

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