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Does bundling benefit social welfare?

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Note: This is post #53 in a weekly video series on basic microeconomics.

Bundling refers to when two or more goods are sold together as a package. Cable TV is a prime example of bundling. What if there was no bundling and you had to pay for Cable TV by channel rather than purchasing channels in bundles? Would you end up paying more or less? In this video by Marginal Revolution University, economist Alex Tabarrok explains the benefits of bundling.

(If you find the pace of the videos too slow, I’d recommend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the gear symbol) and changing “Speed” from normal to 1.25, 1.5 or 2.)

Previous in series: Does tying benefit social welfare?

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Joe Carter Joe Carter is a Senior Editor at the Acton Institute. Joe also serves as an editor at the The Gospel Coalition, a communications specialist for the Ethics and Religious Liberty Commission of the Southern Baptist Convention, and as an adjunct professor of journalism at Patrick Henry College. He is the editor of the NIV Lifehacks Bible and co-author of How to Argue like Jesus: Learning Persuasion from History's Greatest Communicator (Crossway).

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