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Trust-based two-stage order strategy of e-commerce platforms with information asymmetry

Author

Listed:
  • Xiao Fu
  • Qikai Wang
  • Jie Li
  • Yan Liu
  • Guanghua Han

Abstract

This paper explores the trust-based strategic decisions of manufacturers and e-commerce platforms. The analysis shows that the trust update model effectively supplies chain partners' behaviour. In the case of maximising the profit of the supply chain, the manufacturer tends to recommend a higher order quantity, but due to the existence of a trust update mechanism in the e-commerce platform, the final order quantity tends to approach the actual market demand. In the case of maximising trust, if the manufacturer blindly caters to the e-commerce platform, it deviates from the actual market demand forecast and ultimately results in losses. [Received: 27 July 2022; Accepted: 31 December 2022]

Suggested Citation

  • Xiao Fu & Qikai Wang & Jie Li & Yan Liu & Guanghua Han, 2024. "Trust-based two-stage order strategy of e-commerce platforms with information asymmetry," European Journal of Industrial Engineering, Inderscience Enterprises Ltd, vol. 18(2), pages 242-274.
    • Handle: RePEc:ids:eujine:v:18:y:2024:i:2:p:242-274
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