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Product Differentiation, Bundling and Market Structure

Gwanghoon Lee
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Gwanghoon Lee: Korea Information Society Development Institute

Korean Economic Review, 2003, vol. 19, 237-248

Abstract: In a systems market where two complementary components must be used in combination to provide valuable services, decisions of bundling components and resulting market competition structures are shown to depend on the difference between two components in their degrees of product differentiation. The larger the difference, the greater become the incentives for bundling, and more systems are provided as bundles in the market.

Keywords: Product Differentiation; Bundling; Systems Markets; Market Structure (search for similar items in EconPapers)
JEL-codes: L0 L1 L2 (search for similar items in EconPapers)
Date: 2003
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