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Pepsi produces Fritos and Lays potato chips in addition to its basic soft-drink products. Discuss potential ways that this business combination might increase value. From an economic perspective why is such value increased in combinations like this? Can you think of other examples that have a similar bundling strategy for consumers?

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Evaluate a bundling strategy for consumers.

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Business combinations can increase value in several ways. When one product is bundled with another it gives name recognition to both. In this case Pepsi is obviously a very well known product and is sold just about everywhere. When people see that it also produces Frito and lays potato ...

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