Crowdsourcing new product design on the web: an analysis of online designer platform service

DOI10.1155/2013/248170MaRDI QIDQ460340zbMATH OpenOpenAlexWikidataFDO

Authors Xin Dai, Pui-Sze Chow, Jin-Hui Zheng, Chun-Hung Chiu

Publication date 13 October 2014

Published in Mathematical Problems in Engineering (Search for Journal in Brave)

Full work available at URL https://doi.org/10.1155/2013/248170

Mathematics Subject Classification ID

Hierarchical games (including Stackelberg games) (91A65) Applications of game theory (91A80) Resource and cost allocation (including fair division, apportionment, etc.) (91B32)

Review text

Summary: A designer is a core resource in the fashion industry. Successful designers need to be creative and quick to understand the business and wider environment in which they are operating. The Designer Platform Service (DPS), which combines the mechanism of crowdsourcing and group buying on the web, provides a platform for entrant designers to try their abilities in the real market practice. Freelance designers post design samples or sketches of products on the website of DPS, and consumers may preorder the products (each at a fixed price) online based on the design information. Once the number of ordering reaches or passes a certain threshold, that is, the minimum production quantity (MPQ), DPS will arrange for production and delivery according to the orders received. This novel service boosts the growth of entrant designers and links designing works with real markets directly. We are interested in how the price and MPQ decisions are made in DPS, with consideration of the entrant designer's objective, decision sequences, and customer demand structures. We develop Stackelberg games to model and derive the equilibrium solutions under individual scenarios. Our findings suggest feasibility of the DPS business model.

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Cites work

• Coordination mechanism for the supply chain with leadtime consideration and price-dependent demand
• scientific article; zbMATH DE number 44978 (Why is no real title available?)
• Joint Pricing-Production Decisions in Supply Chains of Complementary Products with Uncertain Demand
• Pricing and the Newsvendor Problem: A Review with Extensions
• Pricing peer-produced services: quality, capacity, and competition issues
• Production decisions under joint price and production uncertainty
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Cited in

(4)

• Service operations optimization: recent development in supply chain management
• Decision-making for demand signal in crowdsourcing platform
• Fashion platform operations in the sharing economy with digital technologies: recent development and real case studies
• Product design crowdsourcing in a dual‐channel supply chain: joint reviews from manufacturer and consumers

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