@article{ART003225254},
author={Chung, Hoe Sang},
title={Platform Bargaining Power and Welfare Effects of Self-Preferencing},
journal={Journal of Regulation Studies},
issn={1738-7132},
year={2025},
volume={34},
number={1},
pages={147-163},
doi={10.22954/ksrs.2025.34.1.006}
TY - JOUR
AU - Chung, Hoe Sang
TI - Platform Bargaining Power and Welfare Effects of Self-Preferencing
JO - Journal of Regulation Studies
PY - 2025
VL - 34
IS - 1
PB - 한국규제학회
SP - 147
EP - 163
SN - 1738-7132
AB - This study examines the incentives and welfare implications of self-preferencing by an online platform that uses both wholesale and agency contracts with third-party sellers. Self-preferencing is modeled as a reduction in the transaction costs associated with acquiring information about the platform’s own product at the time of purchase. In particular, I consider Nash bargaining between the platform and a seller over the wholesale price of the seller’s product. The main findings are twofold.
First, self-preferencing increases the platform’s profits when the commission fee charged to a seller under an agency contract is sufficiently low. Second, self-preferencing increases (decreases) consumer surplus and social welfare when the platform’s bargaining power over a seller under a wholesale contract is sufficiently high (low). These results suggest that the platform’s bargaining power in wholesale price negotiations should be taken into account when discussing regulations on self-preferencing.
KW - Online platform;Wholesale contract;Agency contract;Self-preferencing;Bargaining power
DO - 10.22954/ksrs.2025.34.1.006
ER -
Chung, Hoe Sang. (2025). Platform Bargaining Power and Welfare Effects of Self-Preferencing. Journal of Regulation Studies, 34(1), 147-163.
Chung, Hoe Sang. 2025, "Platform Bargaining Power and Welfare Effects of Self-Preferencing", Journal of Regulation Studies, vol.34, no.1 pp.147-163. Available from: doi:10.22954/ksrs.2025.34.1.006
Chung, Hoe Sang "Platform Bargaining Power and Welfare Effects of Self-Preferencing" Journal of Regulation Studies 34.1 pp.147-163 (2025) : 147.
Chung, Hoe Sang. Platform Bargaining Power and Welfare Effects of Self-Preferencing. 2025; 34(1), 147-163. Available from: doi:10.22954/ksrs.2025.34.1.006
Chung, Hoe Sang. "Platform Bargaining Power and Welfare Effects of Self-Preferencing" Journal of Regulation Studies 34, no.1 (2025) : 147-163.doi: 10.22954/ksrs.2025.34.1.006
Chung, Hoe Sang. Platform Bargaining Power and Welfare Effects of Self-Preferencing. Journal of Regulation Studies, 34(1), 147-163. doi: 10.22954/ksrs.2025.34.1.006
Chung, Hoe Sang. Platform Bargaining Power and Welfare Effects of Self-Preferencing. Journal of Regulation Studies. 2025; 34(1) 147-163. doi: 10.22954/ksrs.2025.34.1.006
Chung, Hoe Sang. Platform Bargaining Power and Welfare Effects of Self-Preferencing. 2025; 34(1), 147-163. Available from: doi:10.22954/ksrs.2025.34.1.006
Chung, Hoe Sang. "Platform Bargaining Power and Welfare Effects of Self-Preferencing" Journal of Regulation Studies 34, no.1 (2025) : 147-163.doi: 10.22954/ksrs.2025.34.1.006
