The difference between tying and bundling in pricing strategies is that:
A) they both are strategies that firms use to maximize profit.
B) tying does not require the purchase of both goods, but bundling does.
C) tying involves the combination of goods that are complements, whereas bundling involves the combination of substitutes.
D) tying does not lead to as much profit as bundling does.

Question

Quizplus · Accepted Answer

Tying involves making the sale of one good conditional on the purchase of another good, while bundling involves offering two or more goods or services for sale as a single combined package. With tying, the buyer can choose to purchase only one of the goods, while with bundling, the buyer must purchase all the goods in the bundle.

The Difference Between Tying and Bundling in Pricing Strategies Is