The Impact of Revenue Models on Anti-Counterfeiting Measures for Online Intermediaries

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

3 Scopus Citations
View graph of relations


Related Research Unit(s)


Original languageEnglish
Pages (from-to)1905-1928
Number of pages24
Journal / PublicationInformation Systems Frontiers
Issue number6
Online published19 Oct 2021
Publication statusPublished - Dec 2022


Some have argued that online intermediaries facilitate sales of counterfeit and fake products. This study investigates the association between anti-counterfeit efforts and the revenue models implemented by intermediaries. We build a stylized analytical model to investigate the conditions under which either the advertising model or the brokerage model would lead to a higher anti-counterfeit effort. We find the intensity of market competition plays a critical role in the intermediary’s decisions on anti-counterfeit effort. Specifically, when market competition is less intense, we show that the intermediary has a greater economic incentive to combat counterfeit selling in the brokerage model than in the advertising model. We supplement empirical support to the results. In particular, using a composite score, we find the intermediary that adopts the advertising model tends to have a lower composite score than one using the brokerage model. Our results suggest the focusing on anti-counterfeit measures is more a means rather than an ends in combating counterfeit sales and the policymakers should pay more attention to the impacts from the adopted revenue model.

Research Area(s)

  • Counterfeit, Fake products, Anti-counterfeit, Revenue models, Advertising model, Brokerage model

Bibliographic Note

Research Unit(s) information for this publication is provided by the author(s) concerned.

Citation Format(s)