Dynamic pricing behavior of C2C second-hand trading platform

GU Wei, YU Xiaoru, LI Qing, SONG Yanan, YAN Xiangbin

Systems Engineering - Theory & Practice ›› 2021, Vol. 41 ›› Issue (5) : 1150-1161.

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Systems Engineering - Theory & Practice ›› 2021, Vol. 41 ›› Issue (5) : 1150-1161. DOI: 10.12011/SETP2020-1796

Dynamic pricing behavior of C2C second-hand trading platform

  • GU Wei, YU Xiaoru, LI Qing, SONG Yanan, YAN Xiangbin
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Abstract

How to quickly reach transactions and improve the efficiency of commodity circulation is the key to the operation of customer-to-customer (C2C) second-hand trading platforms. Based on this, this paper builds up an intertemporal pricing decision model for the amateur characteristic of individual sellers and the characteristic of second-hand goods. Through the analysis of the model, this paper raises hypotheses influencing factors of individual sellers' pricing and price adjustment decisions, and conducts the empirical analysis using the data from the Xianyu trading platform. The empirical results indicate that:The pricing and the pricing of adjustment of second-hand goods are positively correlated with the new commodity price, and the pricing of adjustment is positively correlated with the resale price; the decision of the seller's price adjustment direction (price markdown or markup) is significantly correlated with the resale price, the new commodity price and page views; the range of price markup is negatively correlated with the resale price, and the range of price markdown is positively correlated with the resale price; when considering the heterogeneity of commodities, the different time-sensitive commodities have not fully conveyed the expected significant differences in price adjustment range. By combining the theoretical pricing model with empirical studies, this paper analyzes individual sellers' dynamic pricing behaviors, and puts forward suggestions for optimizing pricing strategies and realizing the efficient circulation of commodities.

Key words

customer-to-customer (C2C) / individual sellers / dynamic pricing / second-hand trading

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GU Wei , YU Xiaoru , LI Qing , SONG Yanan , YAN Xiangbin. Dynamic pricing behavior of C2C second-hand trading platform. Systems Engineering - Theory & Practice, 2021, 41(5): 1150-1161 https://doi.org/10.12011/SETP2020-1796

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Funding

National Natural Science Foundation of China (72072010, 71702009); Beijing Social Science Fund (20GLB017); Fundamental Research Funds for the Central Universities (FRF-IDRY-19-009)
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