The paper by Yannis Bakos and Erik Brynjolfsson explores the strategy of bundling a large number of information goods, such as those available on the Internet, and selling them at a fixed price. They analyze the optimal bundling strategies for a multiproduct monopolist and find that bundling a large number of unrelated information goods can be surprisingly profitable due to the "predictive value of bundling," which makes it easier to predict consumers' valuations for a bundle compared to individual goods. This leads to greater sales, economic efficiency, and higher profits per good. The authors use statistical techniques to provide strong asymptotic results and bounds on profits for bundles of any size, showing that bundling can be more profitable than selling goods separately, even when marginal costs are zero. They also discuss the implications of bundling for complements and substitutes, budget constraints, and correlated demands, and how these conditions can limit optimal bundle size. The analysis suggests that bundling can be a powerful tool for price discrimination and can lead to significant economic benefits, particularly in the context of digital information goods.The paper by Yannis Bakos and Erik Brynjolfsson explores the strategy of bundling a large number of information goods, such as those available on the Internet, and selling them at a fixed price. They analyze the optimal bundling strategies for a multiproduct monopolist and find that bundling a large number of unrelated information goods can be surprisingly profitable due to the "predictive value of bundling," which makes it easier to predict consumers' valuations for a bundle compared to individual goods. This leads to greater sales, economic efficiency, and higher profits per good. The authors use statistical techniques to provide strong asymptotic results and bounds on profits for bundles of any size, showing that bundling can be more profitable than selling goods separately, even when marginal costs are zero. They also discuss the implications of bundling for complements and substitutes, budget constraints, and correlated demands, and how these conditions can limit optimal bundle size. The analysis suggests that bundling can be a powerful tool for price discrimination and can lead to significant economic benefits, particularly in the context of digital information goods.