Platform Policies and Sellers’ Competition in Agency Selling in the Presence of Online Quality Misrepresentation

References

• Abhishek, V.; Jerath, K.; and Zhang, Z.J. Agency selling or reselling? Channel structures in electronic retailing. Management Science, 62, 8 (2015), 2259–2280.
   Web of Science ®Google Scholar
• Ba, S.; Whinston, A.B.; and Zhang, H. Building trust in online auction markets through an economic incentive mechanism. Decision Support Systems, 35, 3 (2003), 273–286.
   Web of Science ®Google Scholar
• Banks, J.S.; and Sobel, J. Equilibrium selection in signaling games. Econometrica, 55, 3 (1987), 647–661.
   Web of Science ®Google Scholar
• Bechwati, N.N.; and Siegal, W.S. The impact of the prechoice process on product returns. Journal of Marketing Research, 42, 3 (2005), 358–367.
   Web of Science ®Google Scholar
• Bond Jr, C.F.; and DePaulo, B.M. Accuracy of deception judgments. Personality and Social Psychology Review, 10, 3 (2006), 214–234.
   PubMed Web of Science ®Google Scholar
• Boudreau, K.J., and Hagiu, A. Platform rules: Multi-sided platforms as regulators. In A. Gawer () (ed.), Platforms, Markets and Innovation. Edward Elgar Publishing. 2009, Cheltenham, UK: pp.163–191.
   Google Scholar
• Buchanan, J.; and Stubblebine, W.C. Externality. Economica, 29, 116 (1962), 371–384.
   Web of Science ®Google Scholar
• Cai, H.; Chen, Y.; and Fang, H. Observational learning: Evidence from a randomized natural field experiment. American Economic Review, 99, 3 (2009), 864–882.
   Web of Science ®Google Scholar
• Carbone, C. Amazon has a major problem with thousands of fake reviews, Report claims. Fox News, April 16, 2018February 7, 2022. https://www.foxnews.com/tech/amazon-has-a-major-problem-with-thousands-of-fake-reviews-report-claims .
   Google Scholar
• Che, Y.-K. Customer return policies for experience goods. The Journal of Industrial Economics, 44, 1 (1996), 17–24.
   Web of Science ®Google Scholar
• Chen, L.; Nan, G.; and Li, M. wholesale pricing or agency pricing on online retail platforms: The effects of customer loyalty. International Journal of Electronic Commerce, 22, 4 (2018), 576–608.
   Web of Science ®Google Scholar
• Cheng, H.K.; Liu, Y.; and Tang, Q. The impact of network externalities on the competition between open source and proprietary software. Journal of Management Information Systems, 27, 4 (2011), 201–230.
   Web of Science ®Google Scholar
• Chevalier, J.A.; and Mayzlin, D. The effect of word of mouth on sales: Online book reviews. Journal of Marketing Research, 43, 3 (2006), 345–354.
   Web of Science ®Google Scholar
• Chiang, I.R.; and Jhang-Li, J.H. Delivery consolidation and service competition among internet service providers. Journal of Management Information Systems, 31, 3 (2014), 254–286.
   Web of Science ®Google Scholar
• Cho, I.K.; and Kreps, D.M. Signaling games and stable equilibria. The Quarterly Journal of Economics, 102, 2 (1987), 179–221.
   Web of Science ®Google Scholar
• Cho, S.; Qiu, L.; and Bandyopadhyay, S. Vertical integration and zero-rating interplay: An economic analysis of ad-supported and ad-free digital content. Journal of Management Information Systems, 37, 4 (2020), 988–1014.
   Web of Science ®Google Scholar
• Davis, S.; Gerstner, E.; and Hagerty, M. Money back guarantees in retailing: Matching products to consumer tastes. Journal of Retailing, 71, 1 (1995), 7–22.
   Web of Science ®Google Scholar
• De, P.; Hu, Y.; and Rahman, M.S. Product-oriented web technologies and product returns: An exploratory study. Information Systems Research, 24, 4 (2013), 998–1010.
   Web of Science ®Google Scholar
• Dellarocas, C. Strategic Manipulation of Internet Opinion Forums: Implications for Consumers and Firms. Working Paper2004. February 7, 2022.https://ssrn.com/abstract=585404 .
   Google Scholar
• Dellarocas, C. Strategic manipulation of internet opinion forums: Implications for consumers and firms. Management Science, 52, 10 (2006), 1577–1593.
   Web of Science ®Google Scholar
• Dimensional Research. The Impact of Customer Service on Customer Lifetime Value. Dimensional Research, 2013. February 7, 2022. https://www.zendesk.com/resources/customer-service-and-lifetime-customer-value/.
   Google Scholar
• Fan, M., Kumar, S.; and Whinston, A.B. Selling or advertising: Strategies for providing digital media online. Journal of Management Information Systems, 24, 3 (2007), 143–166.
   Web of Science ®Google Scholar
• Fang, B., Zheng, Z.; Ye, Q.; and Goes, P.B. Social influence and monetization of freemium social games. Journal of Management Information Systems, 36, 3 (2019), 730–754.
   Web of Science ®Google Scholar
• Feng, Y.; Guo, Z.; and Chiang, W.Y.K. Optimal digital content distribution strategy in the presence of the consumer-to-consumer channel. Journal of Management Information Systems, 25, 4 (2009), 241–270.
   Web of Science ®Google Scholar
• Ferguson, M.; Guide Jr, V.D.R.; and Souza, G.C. Supply chain coordination for false failure returns. Manufacturing & Service Operations Management, 8, 4 (2006), 376–393.
   Web of Science ®Google Scholar
• Gardete, P. M. Cheap-talk advertising and misrepresentation in vertically differentiated markets. Marketing Science, 32, 4 (2013), 609–621.
   Web of Science ®Google Scholar
• Gu, Z. J.; and Xie, Y. Providing fit-revealing information in the competitive market. Management Science, 59, 5 (2013), 1196–1212.
   Web of Science ®Google Scholar
• Guo, Z. Optimal decision making for incentive-based word-of-mouth marketing. Decision Support Systems, 52, 2 (2012), 373–383.
   Web of Science ®Google Scholar
• Guo, Z.; and Chen, J. Multigeneration product diffusion in the presence of strategic consumers. Information Systems Research, 29, 1 (2018), 206–224.
   Web of Science ®Google Scholar
• Hao, L.; and Fan, M. An analysis of pricing models in the electronic book market. MIS Quarterly, 38, 4 (2014), 1017–1032.
   Web of Science ®Google Scholar
• Hastak, M.; and Mazis, M.B. Deception by implication: A typology of truthful but misleading advertising and labeling claims. Journal of Public Policy & Marketing, 30, 2 (2011), 157–167.
   Web of Science ®Google Scholar
• Ho, Y.C.; Ho, Y.J.; and Tan, Y. Online cash-back shopping: Implications for consumers and e-businesses. Information Systems Research, 28, 2 (2017), 250–264.
   Web of Science ®Google Scholar
• Hong, Y.; and Pavlou, P.A. Product fit uncertainty in online markets: Nature, effects, and antecedents. Information Systems Research, 25, 2 (2014)., 328–344.
   Web of Science ®Google Scholar
• Hotelling, H. Stability in competition. Economic Journal, 39, 153 (1929), 41–57.
   Google Scholar
• Hsieh, J.K.; and Li, Y.J. Will you ever trust the review website again? The importance of source credibility. International Journal of Electronic Commerce, 24, 2 (2020), 255–275.
   Web of Science ®Google Scholar
• Jiang, Y.; and Guo, H. Design of consumer review systems and product pricing. Information Systems Research, 26, 4 (2015), 714–730.
   Web of Science ®Google Scholar
• Khouja, M.; and Liu, X. A retailer’s decision to join a promotional event of an e-commerce platform. International Journal of Electronic Commerce, 24, 2 (2020), 184–210.
   Web of Science ®Google Scholar
• Kim, D.J.; Ferrin, D.L.; and Rao, H.R. Trust and satisfaction, two stepping stones for successful e-commerce relationships: A longitudinal exploration. Information Systems Research, 20, 2 (2009), 237–257.
   Web of Science ®Google Scholar
• Kumar, A.; Mehra, A.; and Kumar, S. Why do stores drive online sales? Evidence of underlying mechanisms from a multichannel retailer. Information Systems Research, 30, 1 (2019), 319–338.
   Web of Science ®Google Scholar
• Kumar, N.; Venugopal, D.; Qiu, L.; and Kumar, S. Detecting anomalous online reviewers: An unsupervised approach using mixture models. Journal of Management Information Systems, 36, 4 (2019), 1313–1346.
   Web of Science ®Google Scholar
• Kumar, N.; Venugopal, D.; Qiu, L.; and Kumar, S. Detecting review manipulation on online platforms with hierarchical supervised learning. Journal of Management Information Systems, 35, 1 (2018), 350–380.
   Web of Science ®Google Scholar
• Kwark, Y.; Chen, J.; and Raghunathan, S. Platform or wholesale? A strategic tool for online retailers to benefit from third-party information. MIS Quarterly, 41, 3 (2017), 763–785.
   Web of Science ®Google Scholar
• Lee, H.C. (Brian); and Li, X. Impact of online word of mouth on channel disintermediation for information goods. Journal of Management Information Systems, 35, 3 (2018), 964–993.
   Web of Science ®Google Scholar
• Lee, S.Y.; Qiu, L.; and Whinston, A. Sentiment manipulation in online platforms: An analysis of movie tweets. Production and Operations Management, 27, 3 (2018), 393–416.
   Web of Science ®Google Scholar
• Li, L.; Chen, J.; and Raghunathan, S. Advertising role of recommender systems in electronic marketplaces: A boon or a bane for competing sellers? MIS Quarterly, 44, 4 (2020), 1957–1985.
   Web of Science ®Google Scholar
• Li, Q.; Wang, Q.; and Song, P. The effects of agency selling on reselling on hybrid retail platforms. International Journal of Electronic Commerce, 23, 4 (2019), 524–556.
   Web of Science ®Google Scholar
• Luo, X.; Zhang, J.J.; Gu, B.; and Phang, C. Expert blogs and consumer perceptions of competing brands. MIS Quarterly, 41, 2 (2013), 371–395.
   Web of Science ®Google Scholar
• Mayzlin, D. Promotional chat on the internet. Marketing Science, 25, 2 (2006), 155–163.
   Web of Science ®Google Scholar
• Mayzlin, D.; Dover, Y.; and Chevalier, J. Promotional reviews: An empirical investigation of online review manipulation. American Economic Review, 104, 8 (2014), 2421–2455.
   Web of Science ®Google Scholar
• McGuire, T.W.; and Staelin, R. An industry equilibrium analysis of downstream vertical integration. Marketing Science, 2, 2 (1983), 161–191.
   Google Scholar
• McKinney, V.; Yoon, K.; and Zahedi, F.M. The measurement of web-customer satisfaction: An expectation and disconfirmation approach. Information Systems Research, 13, 3 (2002), 296–315.
   Web of Science ®Google Scholar
• Miranda, L. Some Amazon sellers are paying $10,000 a month to trick their way to the top. Buzzfeed News, April 24. February 7, 2022, 2019, https://www.buzzfeednews.com/article/leticiamiranda/amazon-marketplace-sellers-black-hat-scams-search-rankings.
   Google Scholar
• Nan, G.; Yao, L.; Ho, Y.C.; Li, Z.; and Li, M. An economic analysis of platform protection in the presence of content substitutability. Journal of Management Information Systems, 36, 3 (2019), 1002–1036.
   Web of Science ®Google Scholar
• Nicolucci, D. War is on: How to fight unfair competition on Amazon. Linkedin, November 21, February 7, 2022. 2018. https://www.linkedin.com/pulse/war-how-fight-unfair-competition-amazon-davide-nicolucci/.
   Google Scholar
• Oliver, R.L. A cognitive model of the antecedents and consequences of satisfaction decisions. Journal of Marketing Research, 17, 4 (1980), 460–469.
   Web of Science ®Google Scholar
• Parker, G.; and Van Alstyne, M. Innovation, openness, and platform control. Management Science, 64, 7 (2018), 3015–3032.
   Web of Science ®Google Scholar
• Perez, S. Amazon bans incentivized reviews tied to free or discounted products. February 7, 2022, 2016.https://techcrunch.com/2016/10/03/amazon-bans-incentivized-reviews-tied-to-free-or-discounted-products/
   Google Scholar
• Petersen, J. A.; and Kumar, V. Are product returns a necessary evil? Antecedents and consequences. Journal of Marketing, 73, 3 (2009), 35–51.
   Web of Science ®Google Scholar
• Pu, J.; Kwark, Y.; Han, S.; Gu, B.; and Ye, Q. The double-edged sword of expert reviewer programs: The effects of offering expert reviewer status on review generation. Seoul: Proceedings of the International Conference on Information Systems (ICIS), 2017, pp. 1–17.
   Google Scholar
• Pu, X.; Sun, S.; and Shao, J. Direct selling, reselling, or agency selling? Manufacturer’s online distribution strategies and their impact. International Journal of Electronic Commerce, 24, 2 (2020), 232–254.
   Web of Science ®Google Scholar
• Qiu, L.; Cheng, K. H.; and Pu, J. Hidden profiles in corporate prediction markets: The impact of public information precision and social interactions. MIS Quarterly, 41, 4 (2017), 1249–1273.
   Web of Science ®Google Scholar
• Qiu, L.; Shi, Z.; and Whinston, A.B. Learning from your friends’ check-ins: An empirical study of location-based social networks. Information Systems Research, 29, 4 (2018), 1044–1061.
   Web of Science ®Google Scholar
• ReviewMeta. Analysis of 7 Million Amazon reviews: Customers who receive free or discounted item much more likely to write positive review. ReviewMeta. February 7, 2022, 2016. https://reviewmeta.com/blog/analysis-of-7-million-amazon-reviews-customers-who-receive-free-or-discounted-item-much-more-likely-to-write-positive-review/
   Google Scholar
• Rochet, J.C.; and Tirole, J. Two‐sided markets: A progress report. RAND Journal of Economics, 37, 3 (2006), 645–667.
   Web of Science ®Google Scholar
• Sahoo, N.; Dellarocas, C.; and Srinivasan, S. The impact of online product reviews on product returns. Information Systems Research, 29, 3 (2018), 723–738.
   Web of Science ®Google Scholar
• Shulman, J.D.; Coughlan, A.T.; and Savaskan, R.C. Optimal reverse channel structure for consumer product returns. Marketing Science, 29, 6 (2010), 1071–1085.
   Web of Science ®Google Scholar
• Stevens, L., and Emont, J. How sellers trick Amazon to boost sales. The Wall Street Journal, July 28, 2018. February 7, 2022. https://www.wsj.com/articles/how-sellers-trick-amazon-to-boost-sales-1532750493
   Google Scholar
• Su, X. Consumer returns policies and supply chain performance. Manufacturing & Service Operations Management, 11, 4 (2008), 595–612.
   Web of Science ®Google Scholar
• Van Osselaer, S.M.; and Alba, J.W. Consumer learning and brand equity. Journal of Consumer Research, 27, 1 (2000), 1–16.
   Web of Science ®Google Scholar
• Wang, L.; Mo, J., and Li, B. An empirical investigation of sales cheating effect in e-commerce. In Proceedings of the International Conference on Information Systems (ICIS), San Francisco, 2018, pp. 1–9.
   Google Scholar
• Wong, G.; Chu, K.; and Osawa, J. Inside Alibaba, the sharp-elbowed world of Chinese e-Commerce. The Wall Street Journal February 7, 2022, March 2, 2018.https://www.wsj.com/articles/inside-alibaba-the-sharp-elbowed-world-of-chinese-e-commerce-1425332447
   Google Scholar
• Xin, M.; and Choudhary, V. IT investment under competition: The role of implementation failure. Management Science, 65, 4 (2019), 1909-1925.
   Google Scholar
• Zhao, X.; Tian, J.; and Xue, L. Herding and software adoption: A re-examination based on post-adoption software discontinuance. Journal of Management Information Systems, 37, 2 (2020), 484–509.
   Web of Science ®Google Scholar
• Zhao, X.; and Xue, L. Competitive target advertising and consumer data sharing. Journal of Management Information Systems, 29, 3 (2012), 189–222.
   Web of Science ®Google Scholar
• Zhou, W.; and Duan, W. Do professional reviews affect online user choices through user reviews? An empirical study. Journal of Management Information Systems, 33, 1 (2016), 202–228.
   Web of Science ®Google Scholar