arlier this month there was an article in the Wall Street Journal, Why Gadget Warranties Are (Almost) Never Worth It, pointing out the disadvantageous math behind most extended warranties and chastising sellers for offering them. From my perspective extended warranties are good examples of when multi-part pricing makes sense, and they can be a win for both buyers and sellers. Conversely there are times when the better option for your pricing strategy is to create a bundled price, and it is worth discussing when each option makes sense.
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