Friend or foe? Cooperative delivery and local advertising in neighborhood-based E-commerce
研究社区电商中实体小店与线上零售商合作配送和广告的博弈，发现广告能缓解渠道冲突、实现双赢，并提升消费者福利。
This study examines neighbourhood-based e-commerce (NBE) where a nanostore partners with a competing e-tailer, serving as both a pickup point and a local advertiser. Using a game-theoretic model, we explain why nanostores cooperate with e-tailers despite the risk of cannibalising offline demand. Our analysis shows that advertising fundamentally reshapes the partnership, enabling win-win outcomes through distinct mechanisms. When channel differentiation is low, the nanostore has little incentive to advertise, so the collaboration remains a simple pickup arrangement. As differentiation increases, the nanostore becomes more willing to advertise for the e-tailer, even at the expense of its own local advantage. This advertising not only expands the e-tailer’s market reach but also makes the partnership more attractive for e-tailers with initially low consumer awareness, as it helps soften price competition and enables higher pricing despite lower fulfilment cost. Furthermore, the interplay between advertising and price adjustments can offset the negative effects of cannibalisation, so the nanostore’s offline demand does not necessarily decline. Importantly, although NBE eliminates the e-tailer’s last-mile delivery cost, advertising-driven demand growth can increase total fulfilment cost, yet greater overall profitability still motivates collaboration. Finally, NBE can enhance consumer welfare by expanding choice and lowering prices.