Strategic Third-Party Product Entry and Mode Choice under Self-Operating Channels and Marketplace Competition: A Game-Theoretical Analysis
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Biao Xu [1]
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[1] University of Science and Technology Beijing, Beijing 100083, China
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- Localización: Journal of Theoretical and Applied Electronic Commerce Research, ISSN-e 0718-1876, Vol. 19, Nº. 1, 2024, págs. 73-94
- Idioma: inglés
- Enlaces
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Resumen
To bolster their competitiveness and profitability, prominent e-commerce platforms have embraced dual retailing channels: self-operating channels and online marketplaces. However, a discernible trend is emerging wherein e-commerce platforms are expanding their marketplaces to encompass competitive third-party suppliers. Motivated by this trend, this study sought to examine the strategic integration of a third-party product amidst the competition between a selfoperating channel and a marketplace. This investigation involved the development of a gametheoretic model involving a platform and two representative suppliers—an incumbent supplier and a new entrant. Specifically, we delved into establishing an equilibrium partnership between the platform and the new entrant supplier while also evaluating the self-operating strategy of the established supplier. Our analysis uncovered a counterintuitive outcome: an escalation in the commission rate resulted in diminished profits for the established supplier. Furthermore, we ascertained that the economic implications of a competitive product entry pivot significantly on product quality. Lastly, we demonstrated that the revenue-sharing rate plays a pivotal role in influencing the self-operating strategy of the established supplier, and the market equilibrium hinges on the interplay among product quality, the commission rate, and the revenue-sharing rate. These insights provide invaluable guidance for marketers and e-commerce platforms in their strategic decision-making processes.
