Research Article

Using Distribution Alliance to Signal the Seller’s Service Quality in Online Retailing Platforms

Table 1

Notations used in the paper.

VariablesDescription

The seller’s service quality,
The seller’s extra cost for providing high service quality,
The amount of sellers applying for distribution alliance with high service quality
The certification accuracy of the distribution alliance
The application fee for joining distribution alliance
The consumer’s belief about the proportion of sellers with high service quality in distribution alliance
The consumer’s demand for distribution alliance
The fraction of sellers with low service quality who apply for distribution alliance
The seller’s demand for distribution alliance
The total market demand for distribution alliance
The platform’s expected profit of operating distribution alliance