What are other examples? Operating system and web browser.
So you cannot get a web browser, or you typically get an operating system that
also has a web browser installed in it. So that again is a bundle.
You typically, when you book a flight you also automatically book
baggage handling. So you have a free allowance of two
pieces of hand luggage or one suitcase and so on.
So that's something you don't pay extra for, but you also cannot go out of it,
so you cannot opt out. So, you have to pay that extra price, so
that implied extra price for baggage handling, okay?
So, second strategy for producing both complements would be to bundle them in
one. Finally, how can we use complements to
increase lock in? And the idea is again quite simple, users
will typically have switching costs when they switch from A to a substitute.
And that switching cost is higher, the more complements they've bought, okay?
So, that's quite an interesting phenomenon
and we'll see a couple of examples very soon.
But, the idea is simply that if you get someone to buy lots and lots of
complements, then it's going to make it very difficult
for that person to switch from the base product A to any other product.