1564. Strategic Interplay and Fairness Concerns: Optimizing Commission Schemes in an App Ecosystem
Invited abstract in session HF-14: OR conjectures for AI, stream OR and Ethics, and Societal Perspectives.
Thursday, 16:15-17:45Room: HG – Hörsaal 01
Authors (first author is the speaker)
| 1. | Nelly Bart
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| Engineering, Ruppin Academic Center | |
| 2. | Tatyana Chernonog
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| Management, Bar Ilan University | |
| 3. | Tal Avinadav
|
| Management, Bar-Ilan University |
Abstract
This research uses a Stackelberg game to analyze a mobile app supply chain where a platform chooses between proportional and fixed commissions. By incorporating a utility function for fairness (addressing inequality), the study finds that fixed commissions, though less common, often yield higher platform profits and better coordination. While fairness concerns act as a "price" that reduces absolute profit, they enhance collaboration with diverse developers. Under fairness considerations, fixed fees can benefit both parties but may result in cheaper, lower-quality apps for consumers.
Keywords
- Supply Chain Management
- Operations Management
- E-Commerce
Status: accepted
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