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Referral strategy of e‐commerce platform under different selling modes

Author

Listed:
  • Xin Wang
  • Lin Yu
  • Shuhua Zhang
  • Shuping Wu
  • Baoqin Yu
  • Xiaofen Ye

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.

Suggested Citation

  • Xin Wang & Lin Yu & Shuhua Zhang & Shuping Wu & Baoqin Yu & Xiaofen Ye, 2023. "Referral strategy of e‐commerce platform under different selling modes," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(6), pages 3451-3484, September.
    • Handle: RePEc:wly:mgtdec:v:44:y:2023:i:6:p:3451-3484
    DOI: 10.1002/mde.3890
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