{"title":"The Emergence of a Sharing Market: Pricing, Supply, and Consumption","authors":"Ling Ding, Juan Feng, Xiuwu Liao, Lu Yang","doi":"10.1080/10864415.2022.2050580","DOIUrl":null,"url":null,"abstract":"ABSTRACT The emerging sharing economy increases the utilization of existing products/services, reduces the consumption of new resources, and gets more popular in recent years. We consider a market where consumers are differentiated by their preference for the product and develop an analytical model to study how a person-to-person (P2P) sharing market (ideal or imperfect) affects the manufacturer’s pricing strategies, consumers’ consumption time, consumer surplus, and social welfare. Surprisingly, we find that the existence of the sharing market may drive up the selling price of the product if the sharing platform can endogenously determine the commission fee of sharing transactions. Accordingly, depending on the transaction costs and the proportion of high-type consumers, we find that consumers’ total consumption time, consumer surplus, manufacturer’s profit, and social welfare may not improve in the presence of a sharing market. This study also offers guidelines for the sharing platform and optimal pricing strategies for manufacturers.","PeriodicalId":13928,"journal":{"name":"International Journal of Electronic Commerce","volume":"26 1","pages":"149 - 173"},"PeriodicalIF":4.2000,"publicationDate":"2022-04-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Journal of Electronic Commerce","FirstCategoryId":"91","ListUrlMain":"https://doi.org/10.1080/10864415.2022.2050580","RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 1
Abstract
ABSTRACT The emerging sharing economy increases the utilization of existing products/services, reduces the consumption of new resources, and gets more popular in recent years. We consider a market where consumers are differentiated by their preference for the product and develop an analytical model to study how a person-to-person (P2P) sharing market (ideal or imperfect) affects the manufacturer’s pricing strategies, consumers’ consumption time, consumer surplus, and social welfare. Surprisingly, we find that the existence of the sharing market may drive up the selling price of the product if the sharing platform can endogenously determine the commission fee of sharing transactions. Accordingly, depending on the transaction costs and the proportion of high-type consumers, we find that consumers’ total consumption time, consumer surplus, manufacturer’s profit, and social welfare may not improve in the presence of a sharing market. This study also offers guidelines for the sharing platform and optimal pricing strategies for manufacturers.
期刊介绍:
The International Journal of Electronic Commerce is the leading refereed quarterly devoted to advancing the understanding and practice of electronic commerce. It serves the needs of researchers as well as practitioners and executives involved in electronic commerce. The Journal aims to offer an integrated view of the field by presenting approaches of multiple disciplines.
Electronic commerce is the sharing of business information, maintaining business relationships, and conducting business transactions by digital means over telecommunications networks. The Journal accepts empirical and interpretive submissions that make a significant novel contribution to this field.