# Bundling and Economic Value in Use

Unbundling
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Terms in this set (11)
1. Set individual price at maximum ($90 in the example because segments 3 & 4 are willing to pay$90 for a single concert)

2. Set combination price at maximum ($120 in the example because segments 1 & 2 are willing to pay up to$120 for the bundle).

3. multiply the price per concert ($90) times the volume (500 in a single segment) to get single ticket revenue of$45,000 per concert.

4. There are two concerts where the segments are willing to pay $90 per ticket, so multiply$45,000 x 2. Revenue for two concerts is $90,000 5. There are two concerts for which the max WTP is$120 for the bundle, so multiply the bundle price by the number of people willing to pay for the bundle ($120x1000). Bundle revenue equals$120,000.

6. Add bundled revenue to single ticket revenue: $90,000 +$120,000. Total revenue for mixed bundle is \$210,000.