Font Size: a A A

Pricing Strategies For EC Platforms Considering Charateristics Of Subject Behavior

Posted on:2017-02-12Degree:DoctorType:Dissertation
Country:ChinaCandidate:X Y ChengFull Text:PDF
GTID:1109330485451640Subject:Business Administration
Abstract/Summary:PDF Full Text Request
optimal pricing strategy under the monopolistic market structure and duopoly competitive market structure mode respectively. The study found that as advertisers increase customer negative effect the price structure of the platform will tilt customer with monopoly market structure, namely charging higher fees to customers; the number of ads entering the platform are not reduced because of viewers skipping but in some cases increased. Under competitive duopoly market structure, the number of businesses is a concave function of the negative effects of advertising.(3) In the context of e-commerce platform, considering the effect way of customer crowding effect on the pricing decisions. We analyze the optimal pricing and value-added services strategy. We find that platform can eliminate the loss caused by the customer crowding effect by providing value-added services for consumers, which can only be eliminated when seller’s net utility from an additional unit of investment is high enough if investing for sellers.Traditional e-commerce involves business activities centered on commodity exchange via information network technology. In nowadays e-commerce goes beyond commodity exchange resulting from the high-speed development of technology and intensive market competition. We identify all the electronical business activities as e-commerce, namely generalized e-commerce. Generalized e-commerce electronizes the interactions among platforms, sellers, buyers and other service providers, and presents new characteristics. For example, new e-platforms, like online travelling, video websites, recruiting and dating emerges in the market rapidly.An e-commerce platform possesses typical property of two-sided network effect, when it provides the sellers and buyers a service-oriented platform and profits from charging transaction fees from the two sides. The development of e-commerce brings diversified profit patterns, such as fees for entry, advertisement, added service and so on, different from traditional price gap between purchasing and selling. The decisions on how much charge the two sides (the price level) and how to allocate the fee between the two sides (the price structure), has been the key decision for e-platforms. With the development of e-commerce, people notice that the behavior features of interactions among different business agents are quite influential on platforms operation, but literature studying the behavior effect is relatively small. The business performers’behaviors, like risk aversion, ad aversion, crowding aversion, have great impact on their decisions on the platform. Based on related behavioral theories of economic agents, this thesis demonstrates different agents’typical characteristics in the platform system and explores platform pricing strategy.Innovations and contributions of this thesis are briefly summarized as follows:(1) Under unilateral charging mode, e-commerce platform attitude towards risk affect their pricing decisions, based on the characteristics exploring how to guide pricing decisions to maximize the platform system benefits from the mechanism design perspective. The study concluded that the cost-sharing mechanism could guide the pricing decisions of the platform and optimize the overall revenue of the platform services system.(2) Base on the online video platform, we study how the customer choice behavior affect pricing decisions under bilateral charging mode, and exploring the...
Keywords/Search Tags:e-commerce platform, Two-sided Market, network externalities, risk aversion, economic subject behavior, congestion effect
PDF Full Text Request
Related items