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The Impact of the Rivalry Relationships and Restrained Competitive Actions among the Vertical Partners on Their E-Commerce Performance

Mon, November 20, 10:00 to 11:30am, Atlanta Marriott Marquis, Floor: Atrium Level, A702


We examine the impact of the relationship between the individual merchants’ make or buy decisions and corresponding reactions of the online retailer (or marketplace operator) on the sales performance. Using the data collected from the online platform (i.e.,, we empirically show that competitive actions of both the merchant and retailer are restrained by mutual forbearance while the degree of this restraint varies depending on power asymmetry. Our study contributes to literature that significantly neglects the role of rivalry behaviors in the vertical relationship and its impact on related outcomes.