*Result*: Help or hindrance? Implications of logistics delivery control for commission channel encroachment.
*Further Information*
*When a supplier distributing products via the offline reseller introduces a commission channel on an online platform (i.e. commission channel encroachment), the logistics delivery for this channel may be controlled by a third-party logistics provider, the supplier, or the platform. Inspired by these observations, we explore how logistics delivery control modes (LDCMs) influence such encroachment and the payoffs of the involved parties. When commission rates are high under each control mode, the supplier chooses non-encroachment if delivery costs are negligible, but prefers encroachment as delivery costs rise. Compared with the third-party control mode, the supplier control mode facilitates encroachment under moderate commission rates and low delivery costs, but hinders it under high commission rates and moderate delivery costs. By contrast, the platform control mode may help encroachment under both low and high delivery costs while hindering it under moderate delivery costs. When all control modes facilitate encroachment, the supplier and platform may benefit more from ceding such control. The supplier control mode can maximise the platform’s (or supplier’s) profit, but not the reseller’s. Each control mode can maximise consumer surplus and social welfare; however, only the platform and third-party control modes can concurrently maximise the payoffs of all relevant parties. [ABSTRACT FROM AUTHOR]
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