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...

We study competition between two multi-product firms with distinct production technologies in a market where customers have heterogeneous preferences on a single taste attribute. The mass customizer (MC) has a perfectly flexible production technology, thus can offer any variety within a product...