#3344. Promotional pricing strategies for platform vendors: Competition between first- and third-party products

October 2026publication date
Proposal available till 20-05-2025
4 total number of authors per manuscript0 $

The title of the journal is available only for the authors who have already paid for
Journal’s subject area:
Arts and Humanities (miscellaneous);
Developmental and Educational Psychology;
Management Information Systems;
Information Systems;
Information Systems and Management;
Places in the authors’ list:
place 1place 2place 3place 4
FreeFreeFreeFree
2350 $1200 $1050 $900 $
Contract №3344.1 Contract №3344.2 Contract №3344.3 Contract №3344.4
1 place - free (for sale)
2 place - free (for sale)
3 place - free (for sale)
4 place - free (for sale)

Abstract:
This research explores a platforms promotional strategies for its first-party products when the third-party seller carries identical products, taking into consideration consumers redemption cost incurred in searching and using the coupons, gift cards, and so forth. We find that the platform vendor will charge a higher regular price during the promotional period if the market expansion effect is weak or the commission rate is low. When the third-party sellers promotional decision is given, the platforms promotional campaign is more likely to benefit both the platform and the third-party seller as the redemption cost becomes lower or the market expansion effect gets stronger. Finally, after endogenizing the third-party sellers promotional decision, as the market expansion effect intensifies, the outcome that only one player (the platform or the third-party seller) adopts the promotional strategy is more likely to occur as an equilibrium.
Keywords:
First-party products; Platform vendor; Price-sensitive consumers; Promotional strategy; Redemption cost

Contacts :
0