The term platform economy refers to a business practice in which online retailers serve as transaction platforms that connect upstream suppliers with downstream buyers. Each transaction platform has a traditional retail channel where a supplier can sell products indirectly to customers. In...

We consider an e-tailer's upstream supplier who wants to encroach into retailing to earn additional revenue. The supplier needs to decide whether or not to enter the retail market by either selling to consumers on an e-tailer's platform by paying commission fees (agency encroachment) or opening...