Bundling’s Benefits

Lynne Kiesling

Here’s an example of how bundling can create value: Google Pack for Windows. It’s a bundled download of a bunch of Google software (Earth, Picasa, Toolbar, Desktop), but more interestingly, the bundle includes non-Google software: Acrobat Reader, AdAware, Firefox, and Norton Antivirus. All of these are available for download separately, but Google has an incentive to bundle them because then you are more likely to download Google software that you might not otherwise download. Furthermore, the other software manufacturers have an incentive to agree to the bundle because they know that Google’s software is popular, and that they may get more customers by piggybacking on Google.


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