How to React to Internal and External Sharing in B2C and C2C

Posted: 29 May 2019

See all articles by Jun Pei

Jun Pei

The School of Management, Hefei University of Technology; University of Florida - Department of Industrial and Systems Engineering

Ping Yan

Hefei University of Technology

Subodha Kumar

Temple University - Department of Marketing and Supply Chain Management

Xinbao Liu

Hefei University of Technology

Date Written: April 15, 2019

Abstract

The sharing economy has developed rapidly in recent years in the forms of business-to-customer (B2C) and customer-to-customer (C2C), and has exerted a profound impact on incumbent firms that adopt the traditional sales model. Though prior literature has studied either the effect of B2C sharing or C2C sharing, the possible different impacts between both models on incumbent firms have not been addressed. This study compares the impacts of B2C and C2C sharing in an internal sharing scenario where an incumbent firm extends into the sharing business. Further, due to the difference in sharing agents, we also consider an external sharing scenario where an independent entrant firm provides the sharing business. Based on the results of our model, we present several useful managerial insights.

Keywords: B2C sharing, C2C sharing, profit-maximizing, business model

Suggested Citation

Pei, Jun and Yan, Ping and Kumar, Subodha and Liu, Xinbao, How to React to Internal and External Sharing in B2C and C2C (April 15, 2019). Available at SSRN: https://ssrn.com/abstract=3371994

Jun Pei (Contact Author)

The School of Management, Hefei University of Technology ( email )

193 Tunxi Road
Hefei, Anhui 230009
China

University of Florida - Department of Industrial and Systems Engineering ( email )

401 Weil Hall
Gainesville, FL Florida 116595
United States

Ping Yan

Hefei University of Technology ( email )

193 Tunxi Road
Hefei, Anhui 230009
China

Subodha Kumar

Temple University - Department of Marketing and Supply Chain Management ( email )

Philadelphia, PA 19122
United States

Xinbao Liu

Hefei University of Technology ( email )

193 Tunxi Rd
Baohe
Hefei, Anhui
China

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