Volume bundle pricing for tied goods and untied goods in the marketplace

This research examines how firms apply quantity discounts to tied versus untied goods in volume bundles, focusing on shaving razors and shaving cream. Tied goods require joint use (e.g., razors and blades), while untied goods are consumed independently (e.g., shaving cream). We test whether bundling discounts differ across these categories. Market data from major online retailers show consistent discounts for shaving cream bundles but not for razor bundles. Findings indicate quantity discounts are less common for tied goods, highlighting product interdependence as a key factor shaping firms’ pricing strategies.