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| The Mode Choice of Cross-Border Cooperation for the On-Demand Platform with Network Effects |
| CHEN Mingyang，TAN Xinyue，GONG Yeming，YUAN Ziwei |
1. Henan University, Kaifeng, Henan, China; 2. Tianjin University, Tianjin, China; 3. EMLYON Business School, Lyon, France |
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Abstract Based on the phenomenon of cross-border cooperation between on-demand platforms and retail enterprises, we consider the platform’s network effects and self-scheduling behaviors of service providers and build three cooperation modes (no-cooperation, unilateral cooperation, and bilateral cooperation) of a system composed of the on-demand market and the retail market. We analyze the decision-making optimization of stakeholders and the applicable range and optimal mode selection of different modes. The findings show that the effort level of the on-demand platform under the bilateral cooperation mode is lower than that under the unilateral cooperation mode. The cooperation mode will generate lower profits for the platform than the unilateral one. When the demand potential is large, the platform should choose the bilateral cooperation mode. Otherwise, selecting the no-cooperation mode is optimal. In addition, adopting a bilateral cooperation mode can achieve a win-win, even win-win-win outcome in some regions.
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Received: 02 August 2023
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