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Economics of Information MGT 523 Bundling and Price Discrimination 22 nd January, 2001. Joe Pendergrass Surya D Pathak Dongjo Kim Anil Yilmaz. Outline. Background Online Sports Handicapping Services Analysis Recommendations. Background . Popularity of Gambling on sporting events
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Economics of InformationMGT 523Bundling and Price Discrimination22nd January, 2001 Joe Pendergrass Surya D Pathak Dongjo Kim Anil Yilmaz
Outline • Background • Online Sports Handicapping Services • Analysis • Recommendations
Background • Popularity of Gambling on sporting events • Demand for insightful and accurate analysis of these sporting events is tremendous • Handicapping Services are available, many of which are online
Analysis • Bundling • Price Discrimination (based on level of risk aversion and experience) • Versioning Value added Information is like a commodity that can be sold to make profit
Analysis Contd… PackageDescriptionCostPerformance* • Daily Gold Key Play One pick $20 69% • 3Daily Gold Best Three picks $55 61% Bets (including the above) • Fistful of Picks Five picks Special (including the above) $75 71% * Performance includes results from the current college basketball season only.
Recommendations • Reorganize the website to clearly outline the differences between the pick packages. • Emphasize the performance of the service to show that it is unique from other services. • Provide higher priced “Late Breaking” pick packages that emphasize the timing of the information used in the analysis.