17 Bundling Effective method for enhancing profit when consumers have heterogeneous demands But firm is unable to effectively separate consumers by their preferences and then price discriminate Specifically, bundling is an alternative when firms are unable to perfectly price discriminate For example, automobile dealers often offer a package containing a number of options, such as leather seats and antilock brakes Consumers can purchase package containing leather seats and antilock brakes Cannot purchase leather seats or antilock brakes separately
{}