The Impact of Limited Supply on a Firm's Bundling Strategy

A firm's two‐product bundling decision is examined when the supply of one product is limited and consumer valuations are normally distSteckeributed. The firm can choose to sell products separately and/or through a bundle. We find that the impact of limited supply on a firm's bundling decision depends on the correlation between the consumer valuations of the two products as well as the symmetry level of the two products in terms of their attractiveness (how much they are valued by consumers). When the valuation correlation is high and the symmetry level of the two products is low, limited supply can drive bundling. When the valuation correlation is low or the symmetry level is high, limited supply can drive no bundling. When the attractiveness of both products are low or the valuation correlation is very high, limited supply has no impact on a firm's bundling decision: The firm should not bundle for all supply levels. This study offers a new driver for product bundling: the limited supply of a product. The existing bundling literature suggests that a firm should bundle symmetric products that have a low consumer valuation correlation, when bundling is driven by consumer valuation heterogeneity reduction. In contrast, when bundling is driven by limited supply, a firm should bundle asymmetric products with a high consumer valuation correlation. The benefit of supply‐driven bundling depends on the severity of supply limitation. When supply limitation is moderate, bundling creates value by expanding the market of the less attractive product. When supply limitation is severe, bundling enables a firm to extract a higher margin from the less attractive product.     

A conceptual analysis of request teaching procedures for individuals with severely limited verbal repertoires

The Analysis of Verbal Behavior - There have been many published reports of attempts to teach requests to individuals with severely limited verbal repertoires associated with developmental...     

Family policy and critical science research: Facilitating change

The principles of critical science for policy research are outlined and one research project is used as a case study. The study was intentionally designed to facilitate changes that would positively influence the economic well-being of children from divorced families. The project uses the critical science processes of public dialogue about child support guidelines for purposes of collaborative problem solving. The normative theories of procedural and distributive justice are used to guide the research reporting. The project contributes to changes in the practices of estimating the income needs of children, changes in estimating the relative monetary contributions of their parents, and proposed legislation and modifications in the state child support guidelines. She received her Ph.D. in family ecology from Michigan State University. Her research interests include the valuing issues of family life quality, family decision making, divorce,and the economic adjustments of families to economic stressors. She received her M.A. degree in Family Education from the University of Minnesota. Her research interests include decision making and parenting. She received her Ph.D. degree in anthropology from the University of Minnesota. Her research interests include social and cultural change and the integration of research findings into public policy decision making.     

Economic evaluation of drug court: methodology, results, and policy implications

The purpose of this study was to conduct a cost-benefit analysis of three Drug Court programs in Kentucky for two groups of Drug Court participants: program graduates and program terminators. The economic benefits of the Drug Court programs were estimated relative to a comparison group of individuals who were assessed for the Drug Court programs, but did not enter the programs. This study highlights important factors in estimating the costs and the economic benefits of a Drug Court program. Results indicated that, particularly for graduates, Drug Court involvement was associated with reductions in incarceration, mental health services, and legal costs, as well as increases in earnings and child support payments. Net benefits and benefit–cost ratios for each program are presented and policy implications are discussed.     

Strategic planning for endgame

This article is based on the author's study of 61 firms managing businesses in environments of declining demand. It suggests ways in which firms might better prepare for this problem by managing their own exit barriers and by making strategic investments to affect the level of their competitors' exit barriers.     

Collaboration and competition in a children's health initiative coalition: a network analysis

Activating communities to achieve public health change and initiate policy reform usually requires collective action from many entities. This case study analyzes inter-organizational networks among members of a coalition created to expand health insurance coverage to uninsured children in a large metropolitan area. Six networks were measured: collaboration, competition, formal agreements, receive funding from, send funding to, and greater communication. The response rate was 65.8% (50 of the 76 active members). Positive network questions such as “who do you collaborate with” elicited many network choices whereas negative ones such as “who do you compete with” elicited few. The collaboration network had a core–periphery structure and analysis showed that a large network can be reduced to a small set of core organizations one-sixth the size of the whole. Centrality (out- and in-degree) was associated with perceived organizational function and perceived barriers to success. For example, organizations that received many choices as collaboration partners were more likely to perceive the coalition functioned well than those who received few choices. The study suggests that perceptions of organizational performance are associated with position in the network, central members are more likely to perceive the organization performs well than those on the periphery.     

Indoor tanning and problem behavior

OBJECTIVE: The authors examined factors predicting college students' use of tanning beds. PARTICIPANTS AND METHODS: Undergraduate students (N = 745) at a large Northeastern university participated in the study by answering a survey measuring tanning behavior and other psychosocial variables, including sensation seeking, self-esteem, tanning image beliefs, and friends' tanning bed use. RESULTS: All 3 systems from problem behavior theory predicted past tanning bed use and intention to use tanning beds. The authors observed a positive association between sensation seeking and intention to use tanning beds. Tanning image beliefs were positively associated with both past tanning behavior and intention to use tanning beds. CONCLUSIONS: Interventions focusing on friend and acquaintance social network influences may be more effective than health-risk campaigns in reducing tanning bed use.