Recently, e-commerce platforms have been acting as both a reseller and a marketplace to serve consumers. This study considers a hybrid-format supply chain that consists of a supplier who sells a product through an intermediary by a wholesale price contract. In addition, the supplier can decide whether to accept the intermediary’s offer to engage in the marketplace (if the supplier accepts, then the agency fee should be paid to the intermediary). We develop a game-theoretic model to investigate the impact of supplier encroachment on the supply chain members. Then, we extend our basic model to check the robustness of our main results. Our results show that the supplier prefers to engage in the marketplace if the agency fee is low and the order fulfillment cost is relatively low, the intermediary benefits from the supplier encroachment if the agency fee is relatively low, and consumers always benefit from encroachment. Interestingly, we show that an increase in channel substitutability leads to raising the supplier’s willingness to adopt an encroachment strategy. Our findings contribute to the online marketplace literature by providing valuable insights into the operation management of online marketplaces.
Keywords: Online marketplace, supplier encroachment, channel substitutability, hybrid-format supply chain
@article{RO_2021__55_5_2639_0,
author = {Zhao, You and Hou, Rui},
title = {Should a supplier engage in the marketplace? an equilibrium analysis in a hybrid-format supply chain},
journal = {RAIRO. Operations Research},
pages = {2639--2655},
year = {2021},
publisher = {EDP-Sciences},
volume = {55},
number = {5},
doi = {10.1051/ro/2021122},
mrnumber = {4313827},
zbl = {1475.90031},
language = {en},
url = {https://www.numdam.org/articles/10.1051/ro/2021122/}
}
TY - JOUR AU - Zhao, You AU - Hou, Rui TI - Should a supplier engage in the marketplace? an equilibrium analysis in a hybrid-format supply chain JO - RAIRO. Operations Research PY - 2021 SP - 2639 EP - 2655 VL - 55 IS - 5 PB - EDP-Sciences UR - https://www.numdam.org/articles/10.1051/ro/2021122/ DO - 10.1051/ro/2021122 LA - en ID - RO_2021__55_5_2639_0 ER -
%0 Journal Article %A Zhao, You %A Hou, Rui %T Should a supplier engage in the marketplace? an equilibrium analysis in a hybrid-format supply chain %J RAIRO. Operations Research %D 2021 %P 2639-2655 %V 55 %N 5 %I EDP-Sciences %U https://www.numdam.org/articles/10.1051/ro/2021122/ %R 10.1051/ro/2021122 %G en %F RO_2021__55_5_2639_0
Zhao, You; Hou, Rui. Should a supplier engage in the marketplace? an equilibrium analysis in a hybrid-format supply chain. RAIRO. Operations Research, Tome 55 (2021) no. 5, pp. 2639-2655. doi: 10.1051/ro/2021122
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