Journal of Marketing Science ›› 2018, Vol. 14 ›› Issue (3-4合辑): 136-150.

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Information Sharing Strategy for Online Platform: The Impact of Suppliers’ Price and Advertising Competition#br#

Xu Minghui,  Yang Dongsheng#br#   

  1. Xu Minghui,  School of Economics and Management, Wuhan University
    Yang Dongsheng,School of Economics and Management, Wuhan University
  • Online:2018-12-30 Published:2020-09-12

Abstract: By using static game with incomplete information, this paper explores information sharing strategies of an Online platform with two competitive brand suppliers. The results show that demand information sharing benefits both the platform and suppliers. Without information contracts, the online platform is willing to share demand information with at least one supplier. Especially, when the consumer's sensitivity to advertising is larger and the commission fee charged by the online platform is small, the online platform will shares information with only one supplier. Based on the game outcomes between the suppliers, two pricing strategies for information are proposed under which at least one supplier purchases information. If the consumers are less (more) sensitive to advertising competition, pricing strategy of the online platform induces that both suppliers (only one supplier) purchase(s) information. Numerical studies further illustrate the findings in this paper.

Key words:  , information sharing, online platform, competing suppliers, advertising effort, information price