Bundling decisions in supply chains
We examine bundling decisions in a two-tier supply chain consisting of a retailer and several suppliers. If all parties coordinate a supply chain has more to gain from bundling relative to an integrated firm. When the suppliers coordinate the bundling gain is higher than when the retailer bundles the products. In this case of a supplier coalition the bundling gain can exceed the bundling gain of an integrated firm. Supply chains choose bundling for products with high margins and similar valuations with low correlation.
bundling supply chain management price discrimination supply chain contract manufacturer retailer relationship