Research on Joint Cause-Related Marketing Strategy Between E-Commerce Platforms and Merchants Under Government Subsidies Based on Differential Game
Along with the rise of Internet public welfare,e-commerce platforms rep-resented by Alibaba and JD have injected a strong impetus into the development of Chinese public welfare.However,the public practices of platforms and merchants often contain both public welfare and profit motives.In this paper,three differential game models are constructed for platforms and merchants to discuss their cooper-ation question about carrying out joint cause-related marketing(CRM),considering the government's subsidy policy for platforms and the characteristics that engaging in social welfare is multi-cycle and dynamic.Our main results are as follows:1)The government subsidies can incentivize platforms and merchants to provide more in-vestments for social welfare,and motivate platforms to be willing to share more CRM costs for merchants.2)Under certain conditions,platforms share a certain percentage of CRM costs for merchants can not only enhance its social welfare investment,but also achieve Pareto improvement of profits for both.3)Government subsidies can improve the Pareto effect of CRM cost-sharing contracts on the profits of platforms and merchants,but platforms may retain some of the government subsidies and will not invest them all in social welfare.4)In the joint CRM case,the benefits of plat-forms,merchants,and the whole system as well as the consumer surplus and social welfare are all optimal.Finally,.our main results are verified via numerical simulation,hoping to provide a theoretical basis and reference for the joint CRM of platforms and merchants.
Joint cause-related marketingplatform goodwillgovernment subsidiescost sharingdifferential game