The Impact of Revenue Models on Anti-Counterfeiting Measures for Online Intermediaries

Xiong Zhang (), Xin Zhang (), Xuechen Luo () and Wei T. Yue ()
Additional contact information
Xiong Zhang: Beijing Jiao Tong University
Xin Zhang: University of Science and Technology of China
Xuechen Luo: Shanghai International Studies University
Wei T. Yue: City University of Hong Kong

Information Systems Frontiers, 2022, vol. 24, issue 6, No 9, 1905-1928

Abstract: Abstract Some have argued that online intermediaries facilitate sales of counterfeit and fake products. This study investigates the association between anti-counterfeit efforts and the revenue models implemented by intermediaries. We build a stylized analytical model to investigate the conditions under which either the advertising model or the brokerage model would lead to a higher anti-counterfeit effort. We find the intensity of market competition plays a critical role in the intermediary’s decisions on anti-counterfeit effort. Specifically, when market competition is less intense, we show that the intermediary has a greater economic incentive to combat counterfeit selling in the brokerage model than in the advertising model. We supplement empirical support to the results. In particular, using a composite score, we find the intermediary that adopts the advertising model tends to have a lower composite score than one using the brokerage model. Our results suggest the focusing on anti-counterfeit measures is more a means rather than an ends in combating counterfeit sales and the policymakers should pay more attention to the impacts from the adopted revenue model.

Keywords: Counterfeit; Fake products; Anti-counterfeit; Revenue models; Advertising model; Brokerage model (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10796-021-10189-7 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:infosf:v:24:y:2022:i:6:d:10.1007_s10796-021-10189-7

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10796

DOI: 10.1007/s10796-021-10189-7

Access Statistics for this article

Information Systems Frontiers is currently edited by Ram Ramesh and Raghav Rao

More articles in Information Systems Frontiers from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().