Question

1. You sells water & soda. Water sells for $220 & soda sells for $140. Both water & soda sell for $310 as a bundle. Calculate the revenue that is allocated to water and soda using:
   1. the stand-alone method based on selling prices,
   2. the incremental method where water is termed as the primary product in the​ bundle and
   3. the Shapley value method. Round your answers to the nearest dollar.

Answer 1

1	The stand-alone method
	Water ($310 x $220/$360)	$189
	soda ($310 x $140/$360)	$121
2	The incremental method
	Water	$220
	soda ($310 - $220)	$90
3	The Shapley value method
	Water	$195
	soda	$115
				Shapley Value
	Water (Primary), (incremental)	$220	$170	$195
	soda (incremental), (Primary)	$90	$140	$115
		$310	$310	$310