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Flagship Entry in Online Marketplaces

Ginger Zhe Jin et al.

The Journal of Industrial Economics2025https://doi.org/10.1111/joie.70009article
AJG 3ABDC A*
Weight
0.50

Abstract

In this paper, we empirically study how flagship entry in an online marketplace affects consumers, the platform, and various sellers on the platform. We find flagship entry may benefit consumers by expanding the choice set, by intensifying price competition within the entry brand, and by improving consumer perception for parts of the platform. In the meantime, flagship entry cannibalizes the sales of same‐brand sellers, while other brands may gain as the buyer base expands on the platform. Counterfactual simulation suggests that flagship entry improves the gross merchandise value (GMV) of the platform and overall consumer welfare in most cases.

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https://doi.org/https://doi.org/10.1111/joie.70009

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@article{ginger2025,
  title        = {{Flagship Entry in Online Marketplaces}},
  author       = {Ginger Zhe Jin et al.},
  journal      = {The Journal of Industrial Economics},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1111/joie.70009},
}

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Flagship Entry in Online Marketplaces

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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