Track 2
Segmentation, Bundling & Menus
Extracting more surplus through price discrimination, two-part tariffs, bundling, menu design, and pricing policy waterfalls.
Bundling & Product Line Design
Explore Adams-Yellen theory of commodity bundling, compare pure and mixed bundling strategies, and see how negative WTP correlation determines when bundling dominates.
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Topics
Charging Different Prices
Segmenting customers by willingness to pay
Drag segment boundaries on a willingness-to-pay distribution and compare revenue under uniform pricing versus multi-segment strategies.
Bundles, Tiers & Volume Discounts
Two-part tariffs and quantity-based pricing
Design two-part tariffs that balance access fees against per-unit prices, and discover when bundling products extracts more surplus than selling separately.
Bundling & Product Line Design
When selling together beats selling apart
Explore Adams-Yellen theory of commodity bundling, compare pure and mixed bundling strategies, and see how negative WTP correlation determines when bundling dominates.
Restaurant Menu Pricing
RevPASH, item classification, and menu psychology
Classify menu items by profitability and popularity using the Kasavana-Smith matrix, optimize Revenue Per Available Seat Hour, and see how menu formatting shifts order patterns.
From List Price to Pocket Margin
How discounts compound into margin erosion
Build an interactive price waterfall from list price to pocket margin, discover how small discounts compound into massive margin erosion, and learn to evaluate volume discount traps.