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February 22, 2026Annals of Operations Research1 citationsOpen Access

The effect of commission scheme in online marketplaces under various information scenarios

TATal AvinadavTCTatyana ChernonogIMIsaac Meilijson

Key Points

  • This study aims to examine how different commission schemes affect online platforms and sellers in various information contexts.
  • Analyzed two commission schemes: fixed and proportional
  • Considered scenarios of common information and information superiority
  • Evaluated preferences of platforms based on signal sharing
  • Under fixed commission and seller information superiority, platforms prefer informative signals
  • With proportional commission, platforms benefit from sharing private information with sellers
  • Sellers may refuse to participate under the fixed scheme in certain scenarios influenced by private signals

Abstract

Abstract The growing prevalence of online retailing has reshaped how marketplaces operate. This paper considers the case where a platform and a seller both receive signals (private information) that correlate with uncertain demand and may choose whether to share this information. The platform can adopt one of two commission schemes: fixed (a given sum for each unit sold) or proportional (a given percentage of the revenue). Specifically, this study deals with pure strategies and focuses on comparing commission schemes under different information scenarios (common information or information superiority of one of the parties). The main findings are: (i) Under the fixed commission scheme and information superiority of the seller, the platform always prefers a more informative signal. (ii) Under the proportional commission scheme, it is in the platform’s interest to share its private information with the seller and offer the seller a constant percentage that does not depend on the platform’s signal. (iii) In contrast to the proportional commission scheme, under fixed commission, the seller will refuse to play in some (private-signal determined) cases.

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Cite This Study

Avinadav et al. (2026) studied this question.

synapsesocial.com/papers/699a9d27482488d673cd2e0ahttps://doi.org/10.1007/s10479-026-07040-0
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