Flagship entry in online marketplaces / by Ginger Zhe Jin, Zhentong Lu, Xiaolu Zhou and Lu Fang.: FB3-5/2023-41E-PDF

"In this paper, we empirically study how flagship entry in an online marketplace affects consumers, the platform, and various sellers on the platform. We find flagship entry may benefit consumers by expanding the choice set, by intensifying price competition within the entry brand, and by improving consumer perception for parts of the platform. In the meantime, flagship entry cannibalizes the sales of same-brand sellers, while other brands may gain as the buyer base expands on the platform. Counterfactual simulation suggests that flagship entry improves the gross merchandise value of the platform and overall consumer welfare in most cases"--Abstract.

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Publication information
Department/Agency Bank of Canada, issuing body.
Title Flagship entry in online marketplaces / by Ginger Zhe Jin, Zhentong Lu, Xiaolu Zhou and Lu Fang.
Series title Staff working paper = Document de travail du personnel, 1701-9397 ; 2023-41
Publication type Series - View Master Record
Language [English]
Format Electronic
Electronic document
Note(s) "Last updated: August 15, 2023."
Includes bibliographical references.
Includes abstract in French.
Publishing information [Ottawa] : Bank of Canada = Banque du Canada, 2023.
©2023
Author / Contributor Jin, Ginger Zhe, author.
Description 1 online resource (ii, 61 pages) : charts.
Catalogue number
  • FB3-5/2023-41E-PDF
Subject terms Electronic commerce -- Research.
Commerce électronique -- Recherche.
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