Economics at your fingertips  

Manufacturer product quality information disclosure with channel encroachment in the E‐commerce age

Song Huang, Shuting Chen and Lei Xiao

Managerial and Decision Economics, 2020, vol. 41, issue 5, 744-761

Abstract: This study investigates the interplay between a manufacturer's quality disclosure and channel encroachment. We show that there exists a U‐shaped pattern between the manufacturer's payoff and the disclosure cost, whereas the retailer's payoff exhibits a more complicated and nonmonotonic relationship with respect to the disclosure cost. Both firms may benefit from the increase of the disclosure cost when it falls into the intermediate range and when the channel substitution rate is not too low. The increase of the encroachment cost always hurts the manufacturer, and it may even hurt the retailer if it is medium and if the channel substitution rate is low.

Date: 2020
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)

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:

Access Statistics for this article

Managerial and Decision Economics is currently edited by Antony Dnes

More articles in Managerial and Decision Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().

Page updated 2020-06-04
Handle: RePEc:wly:mgtdec:v:41:y:2020:i:5:p:744-761