Suppose that Comcast is trying to decide how to price two channels (NESN. WGBH)
ID: 1205349 • Letter: S
Question
Suppose that Comcast is trying to decide how to price two channels (NESN. WGBH) which it wishes to sell to four consumers (Charlie. Deval, Mitt, and Paul), whose willingness to pay for each channel are listed lie-low. Comcast incurs a marginal cost of $1 for selling an additional channel to a cosumer Suppose Comcast sells each channel individually. What are the optimal prices who purchases which channel? Suppose Comcast sells the channels only as bundle. What is the optimal bundle price and who purchases it? Suppose Comcast engages in a mixed bundling strategy. What is the optimal prices and who purchases what?Explanation / Answer
a.) optimal prices for each will differ. charlie would purchase channel-- "wgbh" at a lower price similarly for rest deval would purchase at lower price.
b.) as bundle charlie would purchase both te channel at lower price; at 20
c.)in mixed bundling chrlie would purchase "wgbh" at 4 and paul "nesn" at 3