Research on the E-commerce Competition: Game Analysis Between Taobao and JD

Abstract

This study analyzes the competitive dynamics between China’s leading e-commerce platforms, Taobao and JD.com, through the lens of game theory. The research examines four critical aspects of their rivalry: pricing strategies, logistics systems, seller management approaches, and customer retention methods. Findings reveal Taobao’s open marketplace model emphasizes price flexibility and social commerce features, while JD.com’s self-operated system prioritizes service quality and logistics speed. Both platforms face the classic “prisoner’s dilemma” in their frequent price wars during major shopping festivals. The paper proposes strategic recommendations, including adopting personalized pricing models instead of blanket discounts, implementing hybrid logistics solutions, balancing seller quality control with marketplace diversity, and enhancing loyalty programs through social commerce integration. These insights offer valuable guidance for e-commerce operators developing competitive strategies, policymakers regulating digital marketplaces, and researchers studying platform economics. The study contributes to the understanding of duopolistic competition in China’s digital economy while suggesting directions for future research in global e-commerce comparisons and behavioral economics applications.