Re: bundling is inherently unfair to consumers

["Eric M. Bennett" <ericb@pobox.com>]

Dan Strychalski wrote:

>Lewis A. Mettler <lmettler@lamlaw.com> wrote --
>
> > Bundling always causes two affects:
> >
> > 1) the price is either raised or kept high to cover the bundled products
> > 2) choice is limited in the short and long term
>
>I've felt all along that there was something to what Lewis was saying.
>Thinking about an example that, on the surface, seems entirely
>beneficial to some consumers, I recently came to the conclusion set
>forth above. That bundling can sometimes provide some benefit does not
>mean that it is not at the same time harmful in some other way.


There is a conflict between lowered *total* cost (relative to buying 
multiple items separately) for people want the bundle, and there is 
increased cost as in Lewis's point (1) above for people who do not 
want it.  Not having the bundle is unfair to one group; having the 
bundle is unfair to the other group.  The free market should be able 
to balance out the price concerns.

Right now I am eating Campbell's split pea & ham soup that I bought 
at the store.  They don't make a version of this same soup without 
the ham.  Is that "unfair" to people who don't like ham?  Maybe.  But 
if they made every possible variety of soup, the grocery store 
wouldn't have room to stock all of them.

I trust that in a free market, a reasonable array of options that are 
in demand will be offered.  There is nothing wrong with not having 
*every* conceivable choice available on the market.  If you're on the 
fringe where the product you want isn't offered commercially, you can 
either cook your own soup or--if you want an OS without a component 
that all major vendors bundle--you can pick up the Linux or FreeBSD 
source and put together your own OS.

--
Eric Bennett / ericb@pobox.com / emb22@cornell.edu  www.pobox.com/~ericb/
Cornell University, Department of Chemistry & Chemical Biology

I have no idea what you're talking about when you say "ask".
- Bill Gates, in his deposition for the U.S. vs. Microsoft lawsuit