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Cooperate or not? Strategic analysis of platform interactions considering market power and precision marketing
Tianjin Univ, Peoples R China.
Tianjin Univ, Peoples R China.
Linköping University, Department of Management and Engineering, Production Economics. Linköping University, Faculty of Science & Engineering.ORCID iD: 0000-0003-3058-7431
Wilfrid Laurier Univ, Canada.
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2021 (English)In: Transportation Research Part E: Logistics and Transportation Review, ISSN 1366-5545, E-ISSN 1878-5794, Vol. 154, article id 102479Article in journal (Refereed) Published
Abstract [en]

In order to increase market share and enhance business competitiveness, comprehensive retail platforms (CRPs), such as Taobao.com and JD.com, are currently cooperating with social service platforms (SSPs), such as TikTok and Meiyou. Therefore, more research attention needs to be paid to such platform supply chains. To this end, this study develops stylized models to explore the impacts of the market power of an SSP and the precision marketing of a CRP on platform cooperation. Our major research findings include the following. First, we investigate the equilibrium strategy and find that if the CRPs commission rate is low (high), cooperation becomes the equilibrium strategy when the SSPs market power is low (high). Second, in most cases, market power will affect the equilibrium strategy with a change in the commission rate. However, in a certain range of commission rates, the equilibrium strategy remains unchanged. That is, market power has an "invalidation effect" on the equilibrium strategy. Finally, we find that as the commission rate increases, precision marketing reduces the willingness of supply chain members to implement platform cooperation. However, when the commission rate is low, precision marketing stimulates cooperation between platforms. The study results provide guidelines for improving the cooperation between CRPs and SSPs.

Place, publisher, year, edition, pages
PERGAMON-ELSEVIER SCIENCE LTD , 2021. Vol. 154, article id 102479
Keywords [en]
Platform cooperation; Strategic decision; Precision marketing; Market power; Supply chain management
National Category
Production Engineering, Human Work Science and Ergonomics
Identifiers
URN: urn:nbn:se:liu:diva-180522DOI: 10.1016/j.tre.2021.102479ISI: 000706190200002OAI: oai:DiVA.org:liu-180522DiVA, id: diva2:1605761
Note

Funding Agencies|Major Program of National Fund of Philosophy and Social Science of China [18ZDA060]

Available from: 2021-10-25 Created: 2021-10-25 Last updated: 2021-10-25

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CiteExportLink to record
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Citation style
  • apa
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  • vancouver
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  • Other style
More styles
Language
  • de-DE
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  • Other locale
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Output format
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