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Product Differentiation, Bundling and Market Structure

Author

Listed:
  • Gwanghoon Lee

    (Korea Information Society Development Institute)

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.

Suggested Citation

  • Gwanghoon Lee, 2003. "Product Differentiation, Bundling and Market Structure," Korean Economic Review, Korean Economic Association, vol. 19, pages 237-248.
    • Handle: RePEc:kea:keappr:ker-200312-19-2-02
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    More about this item

    Keywords

    Product Differentiation ; Bundling ; Systems Markets ; Market Structure;
    All these keywords.

    JEL classification:

    • L0 - Industrial Organization - - General
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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