Contract and Product Quality in Platform Selling
时间: 2020年12月12日14: 00
腾讯会议ID: 859 662 909
More and more e-tailers (platforms) are allowing manufacturers direct access to customers. Two common contracts are offered by platforms to manufacturers: the revenue sharing contract where a platform appropriates a portion of the manufacturer’s revenue, and the fixed fee contract where a platform charges a fixed rent for each sale. Using an analytical model, this paper studies the interrelationship between a platform’s contract choice and a manufacturer’s product quality decision. We find that if product quality is exogenously given, the platform will always adopt the revenue sharing contract. If the manufacturer endogenously decides the quality, however, the platform’s contract choice may be changed. This is because the revenue sharing contract, compared to fixed fee, leads to a lower selling price of the manufacturer, whereas the fixed fee contract can motivate a higher quality than does revenue sharing. As a result, a large (small) market heterogeneity induces the platform to adopt the revenue sharing (fixed fee) contract. We also extend the model to several directions, finding that longer product line, manufacturer competition, lower marginal production cost, and higher platform cost all tend to induce the platform to put forward a fixed fee contract; while if quality decision is less flexible than contract decision, the platform is more ready to embrace revenue sharing. Besides, when there are two platforms competing for the same market, they should differentiate their contract choices so as to mitigate competition.
张建强，江苏师范大学副教授，东南大学管理学博士，德克萨斯大学奥斯汀分校、印第安纳大学访问学者。曾获江苏省优秀博士学位论文，入选江苏高校“青蓝工程”优秀青年骨干教师。在Management Science、Omega、European Journal of Operational Research、International Journal of Production Research、Quantitative Marketing and Economics、Marketing Letters、Information Economics and Policy等学术期刊上发表多篇论文，担任国际、国内权威期刊的审稿人，担任国家自然科学基金项目通讯评审专家。主持国家自然科学基金项目、教育部人文社会科学项目、江苏高校哲学社会科学项目等课题。研究方向主要为运营与营销管理。