Product Complementarities , Capabilities and Governance : A Dynamic Transaction Cost Perspective

  title={Product Complementarities , Capabilities and Governance : A Dynamic Transaction Cost Perspective},
  author={Pablo T. Spiller and Bennet A. Zelner},
When two or more separate products bear a functional complementarity to one another, but also pose hazards related to compatibility and joint performance to consumers wishing to exploit such complementarity, upstream bundling by producers can function as a means of exploiting demand that would otherwise remain latent. The specific organizational form that a bundling arrangement takes-and its corresponding governance structure-depends on the distribution of capabilities among firms and the… CONTINUE READING
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