Chapter 85. Pricing products by using tie-ins

Question answered in this chapter:

Image How does the fact that customers buy razor blades as well as razors affect the profit-maximizing price of razors?

Certain consumer-product purchases frequently result in the purchase of related products, or tie-ins. The following table shows some examples:

Image

Using the techniques I described in Chapter 84, “Estimating a demand curve,” it’s easy to determine a demand curve for the product that’s originally purchased. You can then use Microsoft Excel Solver to determine ...

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