Data Pricing Strategy Based On Hotelling Models

With the advent of the era of big data,every major country around the world is vigorously developing the big data industry,and big data is applied in various fields.As the scale of big data transactions continues to expand,industrial competition will also become increasingly fierce.The emergence of data market makes data have the property of equivalent exchange of general products.Due to the huge difference between data products and traditional industrial products,the pricing of data products has become the research direction of scholars.At present,the research on data quality assessment and data products pricing strategy is still in the initial stage.The current pricing mechanism lacks standardized pricing model,lacks the consideration on multi-dimensional attributes of data,and lacks reasonable and effective pricing research on data characteristics.Therefore,based on the Hotelling pricing model,according to the characteristics of the data products and consumers,and considering the multi-dimensional data products attributes,this paper constructs a duopoly competitive pricing model that is satisfied with data products,and simplifies the multi-dimensional model to the two-dimensional data pricing model,proposes the research problem on competitive pricing strategy of duopoly data products and studies the competitive strategy and pricing strategy of data products.The main research content and innovative work include:(1)Consider the processing cost differential pricing strategy of data product consumers.First of all,this paper introduces the reasons for the differences in data processing costs of consumers and the impact on the pricing of data products,and constructs a pricing model for the problem in the context of data processing cost differences.Then,the model is solved and the parameters are analyzed to get the management enlightenment.The study found that the lower the unit processing cost of consumers,the higher the profit of the two data providers,and the more fierce the competition,which will eventually turn into the competition of product quality and price.Therefore,improving quality is not only beneficial to data consumers,but also of great significance to data providers themselves.(2)Consider the pricing strategy of vertically differentiated product competition for data products.Firstly,on the basis of duopoly data product competitive pricing model,this paper describes the spatial problem of data product vertical differential competition,constructs the data product vertical differential competition pricing game model,and solves the model.Secondly,the two-stage game of the model is carried out to get management enlightenment.The research found that the party with small market share always choose the vertical differentiation competition strategy.As long as the competitors choose the vertical differentiation competition strategy,it will follow the choice of the vertical differentiation competition strategy.If the competitor chooses to provide the original data product,if the new cost design does not exceed the critical point,it mainly chooses the product vertical differentiation competition strategy;and it chooses the original data product if it exceeds the critical point.(3)Consider the combination pricing strategy of data products and services.First of all,considering the transfer of data processing cost,this paper puts forward the combination sale strategy of data product and service.To solve this problem,the pricing model of data product and service combination is constructed and solved.Secondly,the two-stage game of the model is carried out to get management enlightenment.The research found that when the market share is small,the profit of the combination selling of products and services is the largest;when the market competition is balanced,if the competitors adopt the pricing strategy of the combination of data products and services,it only chooses to provide products with a larger profit.If the competitors only provide data products,the optimal strategy is to adopt the combination pricing strategy of data products and services when the service cost is low,and not to adopt the combination pricing strategy when the service cost is high.(4)Consider the pricing strategy of data products under the network externality.Firstly,considering the positive network externalities of data products,the competitive pricing models with the same network externalities and different network externalities are constructed respectively,and the models are solved and the two-stage game of the model is carried out.It is found that on the effect of positive network externality,the party with large network externality utility has the advantages of high price and large profit.Secondly,considering the negative network external effects of data products,this paper proposes the problem on competition between legitimate and pirated products,constructs the duopoly competition pricing model of legitimate and pirated data products,and solves the model and carries out two-stage game.It is found that with the increase of network externality coefficient,the market tends to pirated products for a short time,but with the increase of network externality discount of pirated products,the pirated products tend to decline gradually,eventually the market will return to legitimate products.The duopoly data products competitive pricing model based on the Hotelling model is constructs in this paper,which takes into account the attributes and data characteristics of multi-dimensional data.And from the angle of cost difference,the difference of product and service portfolio as well as the perspective of network externalities,this paper puts forward the mathematical planning model of the duopoly data providers under different strategies,solves the analytic solution,carries out the two-stage game,provides decision-making basis for stakeholders in data transaction,has important theoretical and application value.