Final answer:
Price bundling refers to selling multiple products or services together for a discounted rate, offering consumers increased value and convenience. This strategy is common in industries such as telecommunications and computers. Though it can be consumer-friendly, it sometimes raises antitrust concerns when it limits choices or competition.
Step-by-step explanation:
When it comes to pricing new products, price bundling is a strategy commonly employed. This involves selling two or more products or services together as a single combined unit, often at a discounted rate compared to purchasing each item separately. The appeal of price bundling stems from the perception of increased value and convenience it offers to consumers.
Price bundling can be seen across various industries. For instance, consumers can buy cable, internet, and phone services together from cable companies at a special bundled rate. Similarly, computer manufacturers may include a suite of software programs with a new computer purchase, even though the consumer might not need all the included software. While bundling can provide cost savings and convenience, it can also raise concerns over anticompetitive practices, particularly if it limits consumer choices or unfairly disadvantages competitors.