12.27. You are the only European firm selling vacation trips to the North Pole. You know only...

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12.27. You are the only European firm selling vacation trips to the North Pole. You know only three customers are in the market. You offer two services, round trip airfare and a stay at the Polar Bear Hotel. It costs you 300 euros to host a traveler at the Polar Bear and 300 euros for the airfare. If you do not bundle the services, a customer might buy your airfare but not stay at the hotel. A customer could also travel to the North Pole in some other way (by private plane), but still stay at the Polar Bear. The customers have the following reservation prices for these services:

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Microeconomics

ISBN: 9780470563588

4th Edition

Authors: David Besanko, Ronald Braeutigam

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