Management Science and Financial Engineering

  • 제13권1호
  • /
  • Pages.55-72
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  • 2007
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  • 2287-2043(pISSN)
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  • 2287-2361(eISSN)
한국경영과학회 (The Korean Operations Research and Management Science Society)
권호 표지

Online Channel Strategies of Hybrid Firms and Social Cost

  • Cho, Su-Mi (IT Economy Research Team, Electronics and Telecommunications Research Institute) ;
  • Lee, Sang-Ho (Department of Economics, Chonnam National University)
  • 발행 : 2007.05.31
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초록

We consider the product differentiation model of online channel competition and examine the strategies of hybrid firms in terms of efficiency. After measuring the social cost of online business strategies, we show that (i) online channel of hybrid firm under blockaded entry may increase the social cost if the firms' delivery cost is sufficiently smaller than the consumer's transportation cost, and (ii) online competition under free entry may increase the social cost if the firms' delivery cost is sufficiently larger than the consumer's transportation cost. Finally, we discuss the strategic incentive of hybrid firms to reduce delivery cost and investigate the effect of the Internet maturity on the social cost.

키워드

참고문헌

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