Group Buying on the Web: A Comparison of Price-Discovery Mechanisms
Management Science
The tragedy of the digital commons
Ethics and Information Technology
Group Buying: A New Mechanism for Selling Through Social Interactions
Management Science
What Drives Social Commerce: The Role of Social Support and Relationship Quality
International Journal of Electronic Commerce
Information Systems Research
Group-Buying E-Commerce in China
IT Professional
Online social networks: A survey of a global phenomenon
Computer Networks: The International Journal of Computer and Telecommunications Networking
User-centered investigation of social commerce design
OCSC'13 Proceedings of the 5th international conference on Online Communities and Social Computing
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This study provides a model that captures the essential features of the social commerce business. The model focuses on the relationship between key decision issues, such as marketing expenditures and the revenue streams that are created. As more social commerce businesses enter the marketplace, they are faced with fierce competition, which may lead to sharp increases in marketing and advertising expenditures. This type of competition may lead the industry away from its optimal development path, and at worst, toward a disruption of the entire industry. Another goal of this study is to examine the possibility that the tragedy of commons may occur in the industry. The basic analysis presents Nash equilibrium results with homogeneous and heterogeneous players. The analysis further specifies the conditions that the tragedy of commons can occur. I discuss the strategic implications and policy directions that may be able to overcome the shortcomings of current business model, and help the industry to achieve more sustainable development.