About two-thirds of all households now purchase two or more bundled telecommunications services from the same company (e.g., local telephone, long distance telephone, video, cell phone, Internet, etc.).
a) Explain why consumers frequently prefer bundled telecommunications services and under what conditions suppliers can increase their profits by bundling such services.
b) Does the purchase of bundled services make consumers better off? What about the sellers of the bundled services (e.g., Verizon, Cox, Comcast, etc.)?
c) How do products/technologies such as Skype and set top boxes on televisions disrupt bundling?