Pricing strategy of two-sided markets with partial multihoming

JI Han-lin

Systems Engineering - Theory & Practice ›› 2011, Vol. 31 ›› Issue (1) : 75-83.

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PDF(613 KB)
Systems Engineering - Theory & Practice ›› 2011, Vol. 31 ›› Issue (1) : 75-83. DOI: 10.12011/1000-6788(2011)1-75
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Pricing strategy of two-sided markets with partial multihoming

  • JI Han-lin
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Abstract

Partial multi-homing is one of new researching directions of two-sided markets. This article classified the types of two-sided markets based on characteristics of the behavior of users, and then considered a model of two-sided markets under the situation that competing platforms are different and users are partially multi-homing. The result shows that partial multi-homing decreases the price and profits of platforms, and the profits of platforms are highest when users single-homing, thus platforms have internal motivation to prevent users to be multi-homing. Differentiation between platforms increases profits of them. The results of this article are useful to enact pricing and competition strategies for two-sided markets enterprises, and also can be used to make policies of industrial regulation as academic evidence.

Key words

two-sided markets / single homing / partial multihoming / network externality parameters / pricing

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JI Han-lin. Pricing strategy of two-sided markets with partial multihoming. Systems Engineering - Theory & Practice, 2011, 31(1): 75-83 https://doi.org/10.12011/1000-6788(2011)1-75
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