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Analyzing the dual-channel mechanism for online selling

  • Li Ping Xu*
  • , Jin Lin Li
  • , Lun Ran
  • *Corresponding author for this work
    • Beijing Institute of Technology

    Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

    Abstract

    Many firms can sell identical products online using auctions and posted prices simultaneously. This paper develops a model of the key trade-offs sellers face in such a dual-channel setting, built about the optimal choice of the auction quantity, the auction duration, and the posted price. Our discussion is under the finite inventory of the seller. We model consumer choice of channels through a threshold type function based on the consumer's power exponential utility function, prove a unique auction-participation symmetric equilibrium exists, and demonstrate its properties. The model enables the seller to segment the market appropriately so that the two channels reinforce each other and cannibalization is mitigated.

    Original languageEnglish
    Title of host publication2007 International Conference on Wireless Communications, Networking and Mobile Computing, WiCOM 2007
    Pages4025-4029
    Number of pages5
    DOIs
    Publication statusPublished - 2007
    Event2007 International Conference on Wireless Communications, Networking and Mobile Computing, WiCOM 2007 - Shanghai, China
    Duration: 21 Sept 200725 Sept 2007

    Publication series

    Name2007 International Conference on Wireless Communications, Networking and Mobile Computing, WiCOM 2007

    Conference

    Conference2007 International Conference on Wireless Communications, Networking and Mobile Computing, WiCOM 2007
    Country/TerritoryChina
    CityShanghai
    Period21/09/0725/09/07

    Keywords

    • Dual- channel
    • Online auctions
    • e-commerce

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