Final answer:
Bundling is a strategy where companies sell multiple products or services for a single bundle price, often offering a cost advantage to consumers. While sometimes considered anticompetitive, it is a common and legal practice in many industries.
Step-by-step explanation:
When a company sells multiple products or services together as a bundle for a single bundle price, it typically offers a financial advantage to consumers. This pricing strategy is both enticing and prevalent across different industries. For instance, cable providers often sell a combination of internet, cable TV, and telephone services at a discount through bundling. Whereas consumers could choose to purchase these offerings separately, the bundle pricing model is designed to be more attractive and cost-effective.
In certain circumstances, bundling may be seen as anticompetitive, particularly if it restricts market competition or consumer choice. However, bundling is frequently a legal and standard business practice. For example, purchasing season tickets to ensure access to popular sports games or concerts is a common form of bundling. Similarly, software companies may bundle several programs with a new computer purchase, even if the consumer does not need all the included software.