Universität zu Köln

Morath, Florian and Muenster, Johannes (2018). Online Shopping and Platform Design with Ex Ante Registration Requirements. Manage. Sci., 64 (1). S. 360 - 381. CATONSVILLE: INFORMS. ISSN 1526-5501

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Abstract

We study platform design in online markets in which buying involves a (nonmonetary) cost for consumers caused by privacy and security concerns. Firms decide whether to require registration at their website before consumers learn relevant product information. We derive conditions under which a monopoly seller benefits from ex ante registration requirements and demonstrate that the profitability of registration requirements is increased when taking into account the prospect of future purchases or an informational value of consumer registration to the firm. Moreover, we consider the effectiveness of discounts (store credit) as a means to influence the consumers' registration decision. Finally, we confirm the profitability of ex ante registration requirements in the presence of price competition.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Morath, Florian UNSPECIFIED UNSPECIFIED UNSPECIFIED Muenster, Johannes UNSPECIFIED UNSPECIFIED UNSPECIFIED
URN:	urn:nbn:de:hbz:38-200762
DOI:	10.1287/mnsc.2016.2595
Journal or Publication Title:	Manage. Sci.
Volume:	64
Number:	1
Page Range:	S. 360 - 381
Date:	2018
Publisher:	INFORMS
Place of Publication:	CATONSVILLE
ISSN:	1526-5501
Language:	English
Faculty:	Unspecified
Divisions:	Unspecified
Subjects:	no entry
Uncontrolled Keywords:	Keywords Language CUSTOMER RECOGNITION; PRIVACY CONCERNS; INFORMATION; MARKETS; PRICE; INTERNET; MODEL; SEARCH; OBFUSCATION; COMPETITION Multiple languages Management; Operations Research & Management Science Multiple languages
Refereed:	Yes
URI:	http://kups.ub.uni-koeln.de/id/eprint/20076