Publication Type

Conference Proceeding Article

Version

publishedVersion

Publication Date

6-2017

Abstract

It becomes increasingly popular that some large online retailers such as Amazon open their platforms to allow third-party retail competitors to sell on their own platforms. We develop an analytical model to examine this retailer market place model and its business impact. We assume that a leading retailer has both valuation advantage that may come from its reputation and information advantage that may come from its brand awarenewss. We find that the availability of relatively low-cost advertising through social media or search engine can effectively reduce the leading retailer's information advantage, and thus be an important driving force for its strategic decision to open its platform. Not only does the advertising option directly make small sellers more visible to consumers, but also incentivizes the online retailer to open its platform and dramatically increases small sellers' exposure, indirectly contributing to an even more prominent long tail phenomen on in e-commerce.

Discipline

Databases and Information Systems | E-Commerce | Technology and Innovation

Research Areas

Information Systems and Management

Publication

Proceedings of the 11th China Summer Workshop on Information Management: CSWIM 2017: Nanjing, China, June 23-25

First Page

201

Last Page

206

Publisher

CSWIM

City or Country

Nanjing

Copyright Owner and License

Authors

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