In competitive industries, some firms bundle their products, whereas others unbundle them; still other firms occupy a niche position and offer only a subset of products. No general theory has been advanced to explain this variety of bundling strategies. We characterize the strategies of two...

Supply chains often consist of several tiers, with different numbers of firms competing at each tier. A major determinant of the structure of supply chains is the cost structure associated with the underlying manufacturing process. In this paper, we examine the impact of fixed and variable costs...