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...

In many contexts such as product design and development, advertising, or scouting for technical solutions, clients seek the expertise of external providers to generate innovative solutions for their business problems. Since innovation projects are beset with uncertainty, they often require...