1. The authors examine how consumer search cost and filtering on a retail platform affects the platform, third-party sellers, and consumers.
2. A lower search cost can either increase or decrease the platform’s profit depending on the platform’s demand elasticity.
3. Filtering can either increase or decrease equilibrium retail prices, and when it reveals only a small amount of product match-value variations, it will benefit all parties involved.
The article by Baojun Jiang and Tianxin Zou is an in-depth examination of how consumer search cost and filtering on a retail platform affects the platform, third-party sellers, and consumers. The authors provide evidence from previous studies to support their claims that a lower search cost can either increase or decrease the platform’s profit depending on the platform’s demand elasticity, as well as that filtering can either increase or decrease equilibrium retail prices. They also note that when filtering reveals only a small amount of product match-value variations, it will benefit all parties involved.
The article is generally reliable in its presentation of evidence from previous studies to support its claims; however, there are some potential biases present in the article which should be noted. For example, while the authors do mention potential risks associated with consumer search costs and filtering on online retail platforms (such as higher equilibrium retail prices), they do not explore these risks in any depth or discuss possible solutions for mitigating them. Additionally, while they do present both sides of the argument regarding consumer search costs and filtering (i.e., that it can both benefit and harm all parties involved), they appear to focus more heavily on how it could potentially benefit them rather than exploring potential drawbacks in greater detail. Furthermore, while they cite several sources throughout their article to support their claims, some of these sources may be biased due to their affiliation with certain companies or organizations (e.g., Association for Computing Machinery).
In conclusion, while this article provides an informative overview of how consumer search costs and filtering affect online retail platforms, third-party sellers, and consumers alike, there are some potential biases present which should be taken into consideration when evaluating its trustworthiness and reliability.