Platform‐Induced Category Encroachment: Impact on Manufacturer's Quality Disclosure

ABSTRACT This paper explores the dynamic interplay between the platform owner's category encroachment and the manufacturer's quality disclosure within a supply chain. This research uncovers a noteworthy insight: platform owner‐led category encroachment negatively influences the manufacturer's inclination to disclose information about product quality. Moreover, we observe a free‐rider effect on quality information disclosure by the platform, underscoring the idea that enhanced transparency in product quality information primarily benefits the platform. Notably, our findings reveal specific scenarios that create opportunities for a mutually beneficial outcome, fostering a win‐win situation between the manufacturer and the platform.