Question
An insurance company is considering whether they could more profitably offer home and auto insurance bundled together. There are two types of insurance customers, cheap
An insurance company is considering whether they could more profitably offer home and auto insurance bundled together. There are two types of insurance customers, cheap ones and high rollers. Their willingness to pay for the two types of insurance is given below:
| Customer Type | Home Owners Insurance | Auto Insurance |
| High Roller | $100 | $50 |
| Cheap | $75 | $25 |
Does this meat all of the assumptions for bundling? Why or why not?
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Industrial Relations in Canada
Authors: Fiona McQuarrie
4th Edition
978-1-118-8783, 1118878396, 9781119050599 , 978-1118878392
