China Industry and Economy Review. Issue 2

Author: Gan Chunhui, Editor-in-Chief
Publisher:
Publish Date: 2005-04-01
Features: Industrial organization analysis of bundling sales typically focuses on a single firm leveraging its monopoly position in a market. By bundling a monopolized product with other products, the firm expands its monopoly power into other product markets to gain competitive advantage in another market. This paper first reviews the industrial organization theory of bundling sales, then uses the models of Michael D. Whinston (1990) and Randal Heeb (2003) to study the bundling problems of independent and complementary products, respectively.