The Benefit of Keeping Low-Quality Products: The Perspective from a Strategic Platform

DOI

10.2991/978-2-38476-062-6_30How to use a DOI?

Keywords

digital platforms; low-quality products; competition

Abstract

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.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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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  -