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Alliance formation between a platform retailer and competing manufacturers in sharing consumer data for product development

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  • Matsuhisa, Hiroshi
  • Matsubayashi, Nobuo

Abstract

This study investigates an alliance formation between competing manufacturers and a monopolistic platform retailer, where consumer data collected by the retailer are available between all the alliance members to utilize for the development of their products. The manufacturers alternatively choose to adopt the direct-to-consumer model, where they collect and utilize own consumer data or sell products without data utilization. They are differentiated from each other in varying degree of substitutability. Under the alliance, the effectiveness of utilizing their rival’s consumer data is proportional to the degree of substitutability. By using a game-theoretic approach, we analyze a strategic interaction between two or three manufacturers and the retailer to derive the condition under which the alliance is successfully formed in equilibrium and to discuss the retailer’s profitability of the alliance formation.

Suggested Citation

  • Matsuhisa, Hiroshi & Matsubayashi, Nobuo, 2024. "Alliance formation between a platform retailer and competing manufacturers in sharing consumer data for product development," International Journal of Production Economics, Elsevier, vol. 267(C).
    • Handle: RePEc:eee:proeco:v:267:y:2024:i:c:s0925527323003225
    DOI: 10.1016/j.ijpe.2023.109090
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