Independent sales or bundling? Decisions under different market-dominant powers

Enterprises are aware that bundling strategies can improve profitability in the highly competitive marketplace. This study evaluates an online to offline (O2O) supply chain system made up of a supplier and e-retailer who sell two products independently or bundled through channels, discuss influence pricing strategy channel choice on profit under different market-dominant powers. Based game theory model, we derive optimal wholesale price for supplier, sale e-retailer, their respective profit. We demonstrate Stackelberg leader is more profitable, irrespective whether independent sales chosen. Regardless is, whole receive equal For market leader, decisions should be according size. Sensitivity analysis show as self-price sensitivity coefficient increases, monotonically decreases both bundling; this occur dominated by e-retailer. sales, cross-price increases; players not affected.