Difference between revisions of "Tying arrangement"

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(Created page with "A '''tying arrangement''' is a price structure in which a customer must buy both the durable and the consumable parts of the offer in order to derive value...")
 
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Latest revision as of 19:15, 9 January 2013

A tying arrangement is a price structure in which a customer must buy both the durable and the consumable parts of the offer in order to derive value. The durable part of the offer will be priced relatively low to encourage purchase while the consumable part will be priced relatively high to extract value from customers. Under certain circumstances, tying arrangements are illegal. Contrast with Two-part tariff.