Pricing strategy of product supplementary service in monopoly market

Product is essential to the use of the Product supplementary service (PSS) but not vice versa. In this paper it is analyzed that the equilibrium prices of product and PSS in monopoly market under different price policy: bundle price policy and unbundle price policy. By numerical analysis of the relationship between optimal profits and exogenous factors under the two different price policies, the optimal price policy and its constrained condition are put forward.