Driving Supply to Marketplaces: Optimal Platform Pricing When Suppliers Share Inventory

References

• Afeche P, Liu Z, Maglaras C (2018) Ride-hailing networks with strategic drivers: The impact of platform control capabilities on performance. Research paper, Columbia Business School, New York.Google Scholar
• Airbnb Help Center (2020) What is the airbnb service fee? Accessed March 29, 2022, https://www.airbnb.ie/help/article/1857/what-is-the-airbnb-service-fee.Google Scholar
• Alaei S, Makhdoumi A, Malekian A, Pekeč S (2020). Revenue-sharing allocation strategies for two-sided media platforms: pro-rata vs. user-centric. Preprint, submitted August 4, https://dx.doi.org/10.2139/ssrn.3645521.Google Scholar
• Axsäter S (1990) Simple solution procedures for a class of two-echelon inventory problems. Oper. Res. 38(1):64–69.Link, Google Scholar
• Bai J, So KC, Tang CS, Chen X, Wang H (2019) Coordinating supply and demand on an on-demand service platform with impatient customers. Manufacturing Service Oper. Management 21(3):556–570.Link, Google Scholar
• Bandi C, Moreno A, Ngwe D, Xu Z (2018) Opportunistic returns and dynamic pricing: Empirical evidence from online retailing in emerging markets. Working paper, Harvard Business School, Boston, MA.Google Scholar
• Banerjee S, Riquelme C, Johari R (2015) Pricing in ride-share platforms: A queueing-theoretic approach. Preprint, submitted February 24, https://dx.doi.org/10.2139/ssrn.2568258.Google Scholar
• Benjaafar S, Hu M (2020) Operations management in the age of the sharing economy: What is old and what is new? Manufacturing Service Oper. Management 22(1):93–101.Link, Google Scholar
• Benjaafar S, Kong G, Li X, Courcoubetis C (2019) Peer-to-peer product sharing: Implications for ownership, usage, and social welfare in the sharing economy. Management Sci. 65(2):477–493.Link, Google Scholar
• Berling P, Martínez-de Albéniz V (2011) Optimal inventory policies when purchase price and demand are stochastic. Oper. Res. 59(1):109–124.Link, Google Scholar
• Berling P, Martínez-de Albéniz V (2016a) A characterization of optimal base-stock levels for a multistage serial supply chain. Naval Res. Logist. 63(1):32–46.Crossref, Google Scholar
• Berling P, Martínez-de Albéniz V (2016b) Dynamic speed optimization in supply chains with stochastic demand. Transportation Sci. 50(3):1114–1127.Link, Google Scholar
• Bertsekas DP (1995) Dynamic Programming and Optimal Control, vol. 1 (Athena Scientific, Belmont, MA).Google Scholar
• Besbes O, Castro F, Lobel I (2018) Spatial capacity planning. Preprint, submitted December 13, https://dx.doi.org/10.2139/ssrn.3292651.Google Scholar
• Besbes O, Castro F, Lobel I (2019) Surge pricing and its spatial supply response. Preprint, submitted February 27, 2018, https://dx.doi.org/10.2139/ssrn.3124571.Google Scholar
• Bimpikis K, Candogan O, Saban D (2019) Spatial pricing in ride-sharing networks. Oper. Res. 67(3):744–769.Link, Google Scholar
• Birge J, Candogan O, Chen H, Saban D (2021) Optimal commissions and subscriptions in networked markets. Manufacturing Service Oper. Management 23(3):569–588.Link, Google Scholar
• Bitran G, Caldentey R, Mondschein S (1998) Coordinating clearance markdown sales of seasonal products in retail chains. Oper. Res. 46(5):609–624.Link, Google Scholar
• Booking.com (2020) How much commission do I pay? Accessed March 29, 2022, https://partner.booking.com/en-gb/help/commission-invoices-tax/how-much-commission-do-i-pay.Google Scholar
• Cachon GP (2003) Supply chain coordination with contracts. Handbooks in Operations Research and Management Science, vol. 11 (Elsevier).Google Scholar
• Cachon GP, Lariviere MA (2005) Supply chain coordination with revenue-sharing contracts: Strengths and limitations. Management Sci. 51(1):30–44.Link, Google Scholar
• Cachon GP, Daniels KM, Lobel R (2017) The role of surge pricing on a service platform with self-scheduling capacity. Manufacturing Service Oper. Management 19(3):368–384.Link, Google Scholar
• Calvo E, Martínez-de Albéniz V (2016) Sourcing strategies and supplier incentives for short-life-cycle goods. Management Sci. 62(2):436–455.Link, Google Scholar
• Caro F, Gallien J (2012) Clearance pricing optimization for a fast-fashion retailer. Oper. Res. 60(6):1404–1422.Link, Google Scholar
• Caro F, Martínez-de Albéniz V (2015) Fast fashion: Business model overview and research opportunities. Retail Supply Chain Management: Quantitative Models and Empirical Studies, 2nd ed. (Springer, New York) 237–264.Google Scholar
• Caro F, Kök AG, Martínez-de Albéniz V (2020) The future of retail operations. Manufacturing Service Oper. Management 22(1):47–58.Link, Google Scholar
• Chen X, Li Z, Ming L, Zhu W (2019) The incentive game under target effects in ridesharing: A structural econometric analysis. Preprint, submitted November 13, https://dx.doi.org/10.2139/ssrn.3479675.Google Scholar
• Chen Y-J, Dai T, Korpeoglu CG, Körpeoğlu E, Sahin O, Tang CS, Xiao S (2020) Innovative online platforms: Research opportunities. Manufacturing Service Oper. Management 22(3):430–445.Link, Google Scholar
• Cheng A (2018) What Farfetch’s IPO filing says about the $300 billion luxury fashion industry. Forbes Online (August 21).Google Scholar
• Derwin J (2020) Uber competitor Didi’s new reward system has slashed pay rates for Australian drivers, as they work punishing hours and battle it out for limited jobs. Business Insider Online (January 10), https://www.businessinsider.com.au/didi-advance-australia-review-drivers-pay-rates-commission-vs-uber-rideshare-2020-1.Google Scholar
• Ferraro F, Baldo A, Sastre Boquet I (2019) Digital online competition in fashion and luxury goods: Ynap vs. Farfetch. Technical report, IESE Case SM-1656-E, IESE Publishing, Barcelona, Spain.Google Scholar
• Ferreira KJ, Lee BHA, Simchi-Levi D (2016) Analytics for an online retailer: Demand forecasting and price optimization. Manufacturing Service Oper. Management 18(1):69–88.Link, Google Scholar
• Gallego G, Van Ryzin G (1994) Optimal dynamic pricing of inventories with stochastic demand over finite horizons. Management Sci. 40(8):999–1020.Link, Google Scholar
• Hu M, Zhou Y (2019) Price, wage and fixed commission in on-demand matching. Preprint, submitted April 10, 2017, https://dx.doi.org/10.2139/ssrn.2949513.Google Scholar
• Hu B, Hu M, Zhu H (2018) Surge pricing and two-sided temporal responses in ride-hailing. Preprint, submitted November 19, https://dx.doi.org/10.2139/ssrn.3278023.Google Scholar
• Johnson T (2020) How to sell on Amazon in 2020: Setup, fees, & strategy. Tinuiti (March 2), https://tinuiti.com/blog/amazon/sell-on-amazon/.Google Scholar
• Lariviere MA, Porteus EL (2001) Selling to the newsvendor: An analysis of price-only contracts. Manufacturing Service Oper. Management 3(4):293–305.Link, Google Scholar
• Martínez-de Albéniz V, Simchi-Levi D (2013) Supplier–buyer negotiation games: Equilibrium conditions and supply chain efficiency. Production Oper. Management. 22(2):397–409.Crossref, Google Scholar
• Martínez-de Albéniz V, Talluri K (2011) Dynamic price competition with fixed capacities. Management Sci. 57(6):1078–1093.Link, Google Scholar
• Martínez-de Albéniz V, Planas A, Nasini S (2020) Using clickstream data to improve flash sales effectiveness. Production Oper. Management 29(11):2508–2531.Crossref, Google Scholar
• Ming L, Tunca TI, Xu Y, Zhu W (2019) An empirical analysis of market formation, pricing, and revenue sharing in ride-hailing services. Working paper, IESE Business School.Google Scholar
• Muharremoglu A, Tsitsiklis JN (2008) A single-unit decomposition approach to multiechelon inventory systems. Oper. Res. 56(5):1089–1103.Link, Google Scholar
• Rapier G, Wolverton T (2019) Uber lost $5.2 billion in 3 months. Here’s where all that money went. Business Insider Online (August 9), https://www.businessinsider.com/where-uber-spends-its-money-lost-5-billion-second-quarter-2019-8.Google Scholar
• Ryan JK, Sun D, Zhao X (2012) Competition and coordination in online marketplaces. Production Oper. Management 21(6):997–1014.Crossref, Google Scholar
• Shead S (2020) Restaurant owners in Britain call on Deliveroo to drop commission fees. CNBC (May 1), https://www.cnbc.com/2020/05/01/restaurant-owners-in-britain-call-on-deliveroo-to-drop-commission-fees.html.Google Scholar
• Smith S, Achabal D (1998) Clearance pricing and inventory policies for retail chains. Management Sci. 44(3):285–300.Link, Google Scholar
• Taylor TA (2018) On-demand service platforms. Manufacturing Service Oper. Management 20(4):704–720.Link, Google Scholar
• Zhao Y, Zeng Y (2021) Optimal commissions and subscriptions in mutual aid platforms. Preprint, submitted March 19, https://dx.doi.org/10.2139/ssrn.3781344.Google Scholar