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- Title
ADVERTISING VERSUS BROKERAGE MODEL FOR ONLINE TRADING PLATFORMS.
- Authors
Chen, Jianqing; Fan, Ming; Li, Mingzhi
- Abstract
The article discusses differing consumer-to-consumer platform revenue models used by the online retailers eBay.com and Taobao.com. The article says that eBay using a brokerage model for payments on a transaction basis and Taobao uses an advertising model for revenue from sellers. Other topics include the social welfare outcomes of both models, the matching probabilities under the different models, and an analysis of the equilibrium of buyers and sellers on the platforms.
- Subjects
ELECTRONIC commerce; EBAY Inc.; TAOBAO.COM Inc.; TRANSACTION costs; MARKET equilibrium
- Publication
MIS Quarterly, 2016, Vol 40, Issue 3, p575
- ISSN
0276-7783
- Publication type
Article