Evolutionary Game Analysis of Online Shopping Quality Control: The Roles of Risk Attitude and Government Supervision

The product quality issues of online shopping have not been effectively solved with the rapid development of electronic commerce in China. Faced with the quality issues of online shopping, the main entities, such as online platforms and online sellers, should cooperate to control and assure complian...

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Main Authors: Decheng Wen, Dongwei Yan, Xiaojing Sun, Xiao Chen
Format: Article
Language:English
Published: Wiley 2021-01-01
Series:Complexity
Online Access:http://dx.doi.org/10.1155/2021/5531076
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author Decheng Wen
Dongwei Yan
Xiaojing Sun
Xiao Chen
author_facet Decheng Wen
Dongwei Yan
Xiaojing Sun
Xiao Chen
author_sort Decheng Wen
collection DOAJ
description The product quality issues of online shopping have not been effectively solved with the rapid development of electronic commerce in China. Faced with the quality issues of online shopping, the main entities, such as online platforms and online sellers, should cooperate to control and assure compliant quality. The adverse selection of buyers caused by information asymmetry and the moral hazard of sellers aggravated by bilateral markets make the quality management of online shopping have a high degree of uncertainty and complexity. This study constructs an evolutionary game model to discuss the dynamic process of the quality behaviours of members and analyse the key triggers of the evolutionary directions in online shopping. By using numerical simulation analysis, the influences of government supervision intensities on the evolution trend of members’ quality behaviours are analysed with various risk attitude combinations in various cases. The current research finds that (1) the decrease of the quality control cost and the increase of the government’s benchmark fine are conducive to increasing the platform’s controlling probability; (2) the decrease of the proportion of rent and the increase of sellers’ fraud cost and the government’s benchmark fines are conducive to increasing the seller’s compliance probability; (3) when both the platform and seller are unwilling to make efforts for quality assurance, risk-seeking members make the seller gradually choose to provide compliant products; and (4) when the members are all risk-seeking, strengthening government supervision will help promote the transition of members’ behavioural choices in a benign direction. This paper enriches the theoretical research studies on both online product quality control and government-led social governance system of quality. Suggestions for government supervision and e-commerce entities are also provided for quality assurance and improvement.
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spelling doaj-art-28accd146c1a4770a8e1971d3678a2062025-02-03T01:27:07ZengWileyComplexity1076-27871099-05262021-01-01202110.1155/2021/55310765531076Evolutionary Game Analysis of Online Shopping Quality Control: The Roles of Risk Attitude and Government SupervisionDecheng Wen0Dongwei Yan1Xiaojing Sun2Xiao Chen3School of Management, Shandong University, Jinan 250100, ChinaSchool of Management, Shandong University, Jinan 250100, ChinaSchool of Management, Shandong University, Jinan 250100, ChinaSchool of Management, Fudan University, Shanghai 200433, ChinaThe product quality issues of online shopping have not been effectively solved with the rapid development of electronic commerce in China. Faced with the quality issues of online shopping, the main entities, such as online platforms and online sellers, should cooperate to control and assure compliant quality. The adverse selection of buyers caused by information asymmetry and the moral hazard of sellers aggravated by bilateral markets make the quality management of online shopping have a high degree of uncertainty and complexity. This study constructs an evolutionary game model to discuss the dynamic process of the quality behaviours of members and analyse the key triggers of the evolutionary directions in online shopping. By using numerical simulation analysis, the influences of government supervision intensities on the evolution trend of members’ quality behaviours are analysed with various risk attitude combinations in various cases. The current research finds that (1) the decrease of the quality control cost and the increase of the government’s benchmark fine are conducive to increasing the platform’s controlling probability; (2) the decrease of the proportion of rent and the increase of sellers’ fraud cost and the government’s benchmark fines are conducive to increasing the seller’s compliance probability; (3) when both the platform and seller are unwilling to make efforts for quality assurance, risk-seeking members make the seller gradually choose to provide compliant products; and (4) when the members are all risk-seeking, strengthening government supervision will help promote the transition of members’ behavioural choices in a benign direction. This paper enriches the theoretical research studies on both online product quality control and government-led social governance system of quality. Suggestions for government supervision and e-commerce entities are also provided for quality assurance and improvement.http://dx.doi.org/10.1155/2021/5531076
spellingShingle Decheng Wen
Dongwei Yan
Xiaojing Sun
Xiao Chen
Evolutionary Game Analysis of Online Shopping Quality Control: The Roles of Risk Attitude and Government Supervision
Complexity
title Evolutionary Game Analysis of Online Shopping Quality Control: The Roles of Risk Attitude and Government Supervision
title_full Evolutionary Game Analysis of Online Shopping Quality Control: The Roles of Risk Attitude and Government Supervision
title_fullStr Evolutionary Game Analysis of Online Shopping Quality Control: The Roles of Risk Attitude and Government Supervision
title_full_unstemmed Evolutionary Game Analysis of Online Shopping Quality Control: The Roles of Risk Attitude and Government Supervision
title_short Evolutionary Game Analysis of Online Shopping Quality Control: The Roles of Risk Attitude and Government Supervision
title_sort evolutionary game analysis of online shopping quality control the roles of risk attitude and government supervision
url http://dx.doi.org/10.1155/2021/5531076
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AT xiaojingsun evolutionarygameanalysisofonlineshoppingqualitycontroltherolesofriskattitudeandgovernmentsupervision
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