12.6 Tie-In Sales

Another type of nonuniform pricing is a tie-in sale, in which customers can buy one product or service only if they agree to purchase another as well. Firms use two forms of tie-in sales.

The first type is a requirement tie-in sale, in which customers who buy one product from a firm are required to make all their purchases of another product from that firm. Some firms sell durable machines such as copiers under the condition that customers buy copier services and supplies from them in the future. Because the amount of services and supplies that each customer buys differs, the per-unit price of copiers varies across customers.

The second type of tie-in sale is bundling (or a package tie-in sale), in which two goods are combined ...

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