Research On The Platform Pricing Strategy Based On The Network Externality

In recent years,with the continuous development of information technology,the various kinds of platform enterprises,which are connected by the Internet,have risen rapidly.The existence of the network platform has made the residents improve the quality both in life and work.Therefore,the research on the Two-sided market has also attracted the attention of all the scholars.In the Two-sided market,the platform enterprise links the demanders and suppliers.This not only reduces the information asymmetry between them in communication,but also reduces the research cost for them.But for platform enterprises,they often make different prices for bilateral users.The main reason is the impact of the network externalities generated by users in groups.Based on the network recruitment platform as the research background,aiming at the different network externalities of users under different circumstances,the platform enterprises based on the maximal profit how to decide the price.In this paper,the network externalities generated by users in different situations are defined.In the monopoly market and static competitive market,the platform is priced under the influence of the cross-network externalities between the user groups.In the dynamic competitive market,the platform is priced under the influence of the self-network externalities within the user group.Then the transaction behavior under the different circumstances is depicted in the mathematical models,and the pricing selection of the platform is derived and analyzed.Eventually conclude that,whether the platform is in the monopolistic market or the competitive market,under the action of the strength of the network externality,the price level of the bilateral users will be reduced,and the profit of the platform will be affected.From the point of the view of pricing,the profit generated by the transaction fee will be significantly lower than the registration fee and the both.But from the comparison of the social welfare,it will also depend on the level of the platforms' differentiation and the success rate of matching.In the dynamic period,the pricing decision of the platform also takesthe initial user's scale and the user's transfer cost into account.Nowadays,with the continuous development of technology,platforms want to retain the old users and attract the new users,they also need to improve their differentiation level with other platforms.