We study intrinsic optical bistability in nonlinear composites of coat
ed spheres, motivated by a recent experiment on small-particle heterog
eneous systems. A self-consistent theory is applied to calculate the l
ocal fields in composites of coated spheres with a nonlinear dielectri
c core and a metallic shell, embedded in a linear host. To study the r
esonance response, we use the spectral representation and find that th
e local field in the core generally consists of two resonant terms, ea
ch of which has a form similar to that in the case of spherical inclus
ions but with a pole whose location and residue depend strongly on the
dielectric constant of the core material as well as on the thickness
of the shell. Thus by tuning the relevant microstructure parameters, i
t may be possible to reduce the threshold applied field and enhance th
e bistable response. Model calculations on various physical quantities
are performed in accord with the experimental conditions.