The optimal pricing of E-commerce market with network externalities
Hanjiang Zhang, Zhong Hong-xia
Abstract
Hanjiang Zhang, Zhong Hong-xia
Abstract
So far, two-sided markets theory is one of the latest hot and frontier in the research of the international industrial organization theory. In this paper, under the condition of inter-group externalities and intra-group externalities in the two-sided market pricing model, we will be researching for the impacts on the basis of inter-group externalities and intra-group externalities in the two-sided market pricing strategy, getting the optimal equilibrium solution: The optimal pricing given by the monopoly platform, which can maximize the manufacturer's Profits; The optimal consumption, which consumed by the bilateral user groups. Furthermore, the results also point out that the inter-group externalities and intra-group externalities have a relationship with the optional equilibrium, which have an important significance for the development of the platform operators.
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So far, two-sided markets theory is one of the latest hot and frontier in the research of the international industrial organization theory. In this paper, under the condition of inter-group externalities and intra-group externalities in the two-sided market pricing model, we will be researching for the impacts on the basis of inter-group externalities and intra-group externalities in the two-sided market pricing strategy, getting the optimal equilibrium solution: The optimal pricing given by the monopoly platform, which can maximize the manufacturer's Profits; The optimal consumption, which consumed by the bilateral user groups. Furthermore, the results also point out that the inter-group externalities and intra-group externalities have a relationship with the optional equilibrium, which have an important significance for the development of the platform operators.
Key concepts: Externality, Monopoly, Network effect, Microeconomics, Economics, Industrial organization, Consumption (sociology), Point (geometry)