f01d1b6e_ns__Information__and_Decisions__Title
[Date] October 21, 2011 [Presenter] Vibhanshu Abhishek [Title] 
Reselling or Platform-Selling? Channel Structures in Electronic Retailing "Recent innovations in e-commerce have led to the emergence of e-commerce platforms, which manufacturers can use to directly reach out to customers. In this paper we analyze under what market conditions e-tailers should set up e-commerce platforms instead of entering into a more conventional reseller agreement with manufacturers. We use a theoretical model to capture the effect that various factors like market competition and interaction with traditional channel have on this decision. Our results suggest that whenever the e-channel leads to cannibalization in traditional retail, setting up a platform is more profitable for the e-tailers, whereas, when the electronic channel leads to strong stimulation of demand in the traditional channel, e-tailers should enter into a reseller contract with the manufacturer. This change in preference is moderated by competition and as the competition increases, the e-tailers prefer to set up platforms. We also identify conditions under which all markets participants are better off when platforms are used. Finally, we analyze the effect that a new entrant has on existing e-channel structure and show that entry can disrupt existing channel structures. Surprisingly, we find that under some conditions consumers might face higher prices in the electronic channel when there are competing e-tailers as opposed to a monopolistic e-tailer. Joint work with Kinshuk Jerath (CMU) and Z. John Zhang (Wharton)."
Seminars / Conferences - Operations, Information, and Decisions
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