Bundling and Cooperation of Complementary Product
Available Online April 2016.
- https://doi.org/10.2991/emim-16.2016.100How to use a DOI?
- Complementary products; Bundling Strategy; Bundling effect; Cooperation
- We investigate product bundling strategy in a distribution channel with a common retailer and two complementary products suppliers. We get the thresholds of bundling effect for bundling strategy in different channel structures, and show that the cooperation of suppliers and retailer will improve the profitability of bundling strategy in some cases. The complementary suppliers cooperate to form an alliance only when the bundling effect are high enough, and the grand alliance could be stable when the allocation of bargaining power between channel members is appropriate. The bundle area will be expanded by the cooperation of retailer and by the cooperation of two suppliers when the degree of product complementarity is high enough.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
TY - CONF AU - Lingzhi Shao PY - 2016/04 DA - 2016/04 TI - Bundling and Cooperation of Complementary Product BT - 6th International Conference on Electronic, Mechanical, Information and Management Society PB - Atlantis Press SP - 470 EP - 474 SN - 2352-538X UR - https://doi.org/10.2991/emim-16.2016.100 DO - https://doi.org/10.2991/emim-16.2016.100 ID - Shao2016/04 ER -