The Benefit of Keeping Low-Quality Products: The Perspective from a Strategic Platform
- 10.2991/978-2-38476-062-6_30How to use a DOI?
- digital platforms; low-quality products; competition
Digital platforms (e.g., Taobao and JD) that host third-party sellers have become the dominant economic driving force in the current e-commerce industry. However, rich evidence suggests that platforms provide many low-quality products which cause numerous consumer complaints. This paper explores a parsimonious equilibrium model that provides a potential interpretation to why keeping low-quality products might improve a strategic platform’s profit, although doing so might be at the low-quality seller’s costs. Managerial implications are discussed.
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Cite this article
TY - CONF AU - Zixian Liu PY - 2023 DA - 2023/07/11 TI - The Benefit of Keeping Low-Quality Products: The Perspective from a Strategic Platform BT - Proceedings of the 2023 2nd International Conference on Social Sciences and Humanities and Arts (SSHA 2023) PB - Atlantis Press SP - 239 EP - 246 SN - 2352-5398 UR - https://doi.org/10.2991/978-2-38476-062-6_30 DO - 10.2991/978-2-38476-062-6_30 ID - Liu2023 ER -