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doi: 10.3934/jimo.2022043
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## Online channel design in the presence of price self-matching: Self-operating or e-marketplace?

 School of economics and management, Hebei University of Technology, Tianjin 300401, China

*Corresponding author

Received  August 2021 Revised  December 2021 Early access March 2022

Fund Project: The work is supported by National Natural Science Foundation of China (Nos. 71971076, 72171169, 71371186) and Natural Science Foundation of Hebei Province (No:G2019202344)

Many traditional retailers become multi-channel retailers by establishing self-operated online channel or employing e-retailer's e-marketplace, and some multi-channel retailers adopt price self-matching to mitigate intense price competition in multi-channel retailing. Our goal in this research is to examine how the multi-channel retailer's online channel design interacts with its price self-matching strategy in a supply chain including a multi-channel retailer and an e-retailer. Our study demonstrates that adopting price self-matching does not necessarily benefit the multi-channel retailer. Moreover, price self-matching can greatly impact the performance of the multi-channel retailer's online channel design, for example, under some market conditions where the multi-channel retailer can benefit from price self-matching only if it employs the e-retailer's e-marketplace, the multi-channel retailer should design online channel according to the e-marketplace's commission rate; but under other market conditions, it should always establish self-operated online channel. Overall, only the strategy of establishing self-operated online channel and adopting price self-matching and the strategy of employing the e-retailer's e-marketplace and adopting price self-matching can help the two retailers achieve a win-win situation. Furthermore, we show that, interestingly, a more prominent disadvantage of the self-operated online channel's potential demand benefits not only the e-retailer but also the multi-channel retailer.

Citation: Jie Wei, Meijing Chang. Online channel design in the presence of price self-matching: Self-operating or e-marketplace?. Journal of Industrial and Management Optimization, doi: 10.3934/jimo.2022043
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##### References:
Changes of maximal profits with η
Changes of maximal profits with f
Changes of maximal profits with v
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Changes of maximal profits with η
Changes of maximal profits with f
Changes of maximal profits with v
Changes of maximal profits with θ
Changes of maximal profits with η
Changes of maximal profits with f
c3. Changes of maximal profits with v
Changes of maximal profits with θ
Consumers segments and proportions
 Information structure Channel preference Complete Incomplete Store-only ($SC$): (1-$\alpha$)$\lambda$ ($SI$): (1-$\alpha$)(1-$\lambda$) Online ($OC$): $\alpha\eta$ ($OI$): $\alpha$(1-$\eta$)
 Information structure Channel preference Complete Incomplete Store-only ($SC$): (1-$\alpha$)$\lambda$ ($SI$): (1-$\alpha$)(1-$\lambda$) Online ($OC$): $\alpha\eta$ ($OI$): $\alpha$(1-$\eta$)
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