Segmentation Versus Integration: The Case of Non-Homogeneous Groups

21 Pages Posted: 23 Mar 2004

See all articles by Uriel Spiegel

Uriel Spiegel

Bar-Ilan University - Department of Management

J. Templeman

The College of Management (Israel)

Abstract

The paper adds another dimension to the literature on bundling as a profit-maximizing strategy. We compare policies of joint consumption and segmentation of a profit maximizer. In the case of positive social influences between two population groups 'bundling' is preferred to segmentation, while under negative symmetric inter-group effects (based perhaps on race, religion, status etc.) segmentation is preferred. Our contribution lies in the examination of joint consumption versus segmentation under asymmetric inter-group effects, with and without price discrimination. This can occur when non-homogeneous groups share the same residency, school or other local public institutions.

Suggested Citation

Spiegel, Uriel and Templeman, J., Segmentation Versus Integration: The Case of Non-Homogeneous Groups. Manchester School, Vol. 72, No. 1, pp. 131-151, January 2004. Available at SSRN: https://ssrn.com/abstract=513763

Uriel Spiegel (Contact Author)

Bar-Ilan University - Department of Management ( email )

Ramat-Gan, 52900
Israel
011-972-3-5318282 (Phone)
+972.3.535.3329 (Fax)

J. Templeman

The College of Management (Israel)

7 Yitzhak Rabin Blvd.
P.O. Box 25072
Rishon LeZion, 75190
Israel

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