The Pricing Strategies Study Of Two-sided Markets Which Introduces Cost Structure

Two-sided markets are ubiquitous in real economic activities.Platform enterprises in these markets provide products or services to users on both sides,which is different from the traditional “buyer-seller” unilateral market structure.So far,scholars have obtained many instructive results in the study of the theory of the two-sided market.In particular,discussions on pricing strategies have been applied to bank cards,ecommerce platforms,media,software stores,and other industries.E-sports competition platform connects audiences on one side and connects advertisers on the other.It has a typical “two-sided market” structure and features.In recent years,with the rapid development of China's e-sports industry,various kinds of competitions have sprung up.However,due to lack of operational experience and theoretical support,there are many unreasonable pricing strategies.Loss-leader phenomenons occur occasionally,which has seriously hindered the healthy development of e-sports industry.Therefore,it is necessary to focus on the characteristics of two-sided market,strengthen the esports industry's pricing strategy research,and improve the platform's actual profitability.In this context,the following studies have been conducted in this article:The article first summarizes previous studies of two-sided market on the definition,classification and characteristics,pricing strategies,and other aspects.Then the relevant concepts of e-sports were elaborated,and the characteristics of their two-sided markets were analyzed.Next,in the study of pricing strategy,it uses profit maximization as the basis for pricing.By building the profit function of the platform and finding the best value,this paper gives the optimal pricing strategy under four charging modes.At the same time,combining with the cost characteristics of the e-sports competition platform,it analyzes the relationship between the cost structure and the value of the competition,and further studies how it influence pricing strategy,which is rare involved in previous researches.This is the main theoretical innovation point of this paper.The results show that the choice of pricing strategy depends on the value of the competition and the externality of the audience.And the cost structure determines the value of the competition,so platform enterprises' distribution of cost will affect its optimal pricing.