Gong, Canran, Ignatius, Joshua, Song, Huaming, Chai, Junwu and Day, Steven James (2024). The impact of platform’s information sharing on platform’s private label under manufacturer encroachment and selling format decision. European Journal of Operational Research, 317 (1), pp. 141-155.
Abstract
Motivated by recent practice observations, we consider an incumbent manufacturer who has an existing wholesale contract with a e-commerce platform, which the latter sells as a private label product in its online marketplace. In this context, the manufacturer launches its follower product, which will coexist alongside the private label product on the platform. We study the interplay between the manufacturer’s choice of selling format (i.e., reselling or agency) and how this choice influences the platform’s decision to share (or not to share) demand information with the manufacturer (i.e., information sharing policy). In particular, we examine how the manufacturer’s selling format choice is impacted by the platform’s information sharing policy when subjected to perceived information accuracy. Using game-theoretic analyses, we find that under low perceived information accuracy, the manufacturer adopts the agency format when the commission rate is low but the reselling format when the commission rate is high. However, the platform withholds the demand information. More interestingly, when the commission rate and perceived information accuracy are both high, the manufacturer switches from the reselling to the agency format and this induces the platform to share demand information. This benefits both the manufacturer and the platform with the Pareto-improving zone expanding when perceived information accuracy is at least moderate but shrinking when the market size potential of the follower product increases. Ultimately, both parties can benefit from information sharing once in business and when the commission rate is high. The platform should also invest in greater information accuracy in such conditions.
Publication DOI: | https://doi.org/10.1016/j.ejor.2024.03.036 |
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Divisions: | College of Business and Social Sciences > Aston Business School > Operations & Information Management College of Business and Social Sciences College of Business and Social Sciences > Aston Business School |
Funding Information: | This work is supported by the Natural Sciences and Engineering Research Council of Jiangsu Province (KYCX21_0360), Foreign Youth Talent Program (QN2023182001L), the Belt and Road Innovative Talents Exchange with Foreign Experts Project (DL2023182002L), th |
Additional Information: | Copyright © 2024 Elsevier B.V. This manuscript version is made available under the CC-BY-NC-ND 4.0 license https://creativecommons.org/licenses/by-nc-nd/4.0/ |
Uncontrolled Keywords: | E-commerce,Information sharing,Product competition,Selling format,Information Systems and Management,General Computer Science,Modelling and Simulation,Management Science and Operations Research |
Publication ISSN: | 1872-6860 |
Last Modified: | 16 Aug 2024 07:17 |
Date Deposited: | 12 Apr 2024 13:34 |
Full Text Link: | |
Related URLs: |
https://www.sci ... 377221724002364
(Publisher URL) http://www.scop ... tnerID=8YFLogxK (Scopus URL) |
PURE Output Type: | Article |
Published Date: | 2024-08-16 |
Published Online Date: | 2024-03-25 |
Accepted Date: | 2024-03-24 |
Authors: |
Gong, Canran
Ignatius, Joshua ( ![]() Song, Huaming Chai, Junwu Day, Steven James |
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