a) Two-Part Tariffs
Under this pricing scheme, consumers pay a subscription fee (F),
and a per article price ( 
) [Oi71]. Thus, the price schedule they face
is:
Profit will be:
where 
.
The profit-maximizing subscription fee is 
and the per-article charge is
. 
, and profit is
. Note that this profit is 18.5 %
higher than the profits from the one-parameter pricing schedules we
analyzed above.
b) Mixed Bundling
With mixed bundling, consumers can choose to buy individual items at
each, or all N items for 
. Separate purchase is preferred
by consumers who want fewer than 
articles, otherwise
bundling is preferred. The price schedule is:
Profit will be:
where . 
is defined as
the 
for which the consumer surplus attained from buying the bundle is exactly
equal to the consumer surplus from buying articles separately instead.
Individuals with 
will buy the bundle. Everyone else will purchase
(fewer) articles on an individual basis.
Profits are maximized if 
, 
, and 
. Profit will be
. Notice that this is the same as the
profit attained under two-part tariffs.