Barter, Bundling, and Price Discrimination
Happy commerce at Hanover Strings.
At the urging of one of my best friends (who just so happens to be a virtuoso on the electric guitar), I’ve decided to get back into practicing the bass guitar. We’re working on a set of Van Halen tunes including Jump, Panama, and Unchained. I anticipate struggling with their YouTube tabs for the next several weeks—if I’m being honest, possibly months. Anyway, before I could begin rehearsing, I had to get a new 9V battery for my bass, an instrument cable for my amp, and a new shoulder strap. There’s precisely one place to acquire these items at Dartmouth: Hanover Strings.
As soon as I entered, the friendly cashier asked if I was looking for anything in particular. Indeed, I was! I wrongly asked for an “aux cable”, which is apparently not the same as an “instrument cable.” I learn something new every day! The kind cashier (possibly also the manager?) directed me to two choices: one with a durable, threaded sleeve and a standard one. I opted for the more durable of the two, knowing I’m not the gentlest with my equipment. Since I went for the pricier option of the two, the cashier threw in the 9V battery gratis. Responding to his kindness, I went all in and chose a Dartmouth-green guitar strap. Instead of charging me for the individual items, the cashier charged me a cool $40 for the whole kit and caboodle.
I vaguely remember from my introduction to industrial organization that bundling is a form of price discrimination and is, on occasion, frowned upon by regulators. Perhaps there is a sophisticated economic rationale for opposing such pricing mechanisms. If so, I’m not aware of the precise reason (though, as always, I’m eager to hear an explanation). I, for one, enjoyed the bartering and bundling at Hanover Strings and have been made a loyal customer from this one interaction.
So, if you’re in Hanover and looking for music equipment, check out the friendly folks at Hanover Strings!