Referral strategy of e‐commerce platform under different selling modes

Xin Wang, Lin Yu, Shuhua Zhang, Shuping Wu, Baoqin Yu and Xiaofen Ye

Managerial and Decision Economics, 2023, vol. 44, issue 6, 3451-3484

Abstract: This study considers a market comprising two suppliers and one e‐commerce platform. The two competitive suppliers sell products to consumers through the platform. The platform can choose three selling modes: reseller, market, and mixed. Additionally, we consider two referral strategies—namely, exclusive and nonexclusive recommendations—and build a three‐party Stackelberg game model. Per the findings, the difference in the players' decision‐making results exhibits an essential relationship with the recommendation market's initial size. A counterintuitive result is that the product price is not affected by the commission rate in the market mode. This provides referential insights for platforms and suppliers.

Date: 2023
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https://doi.org/10.1002/mde.3890

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Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:44:y:2023:i:6:p:3451-3484

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