Competition in two-sided platforms considering agent’s satisfaction
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    Abstract:

    Recent literature on two-sided market theory mainly focuses on single-period game theory,and o-mits dynamic pricing in multi-period games. This disagrees with the reality that agents always make multiple transactions and that platforms face dynamic pricing. After building a two-sided duopoly platforms model con-sidering consumer satisfaction,the paper analyzes the optimal prices under different pricing strategies ( uniform pricing or discrimination pricing) and different strategic targets ( short-term profits or long-term profits) ,and then discusses their applicability and validity. It is found that a higher first-period market share can ensure neither a higher second-period market share nor the repeated purchase ratio; Discrimination pricing strategy is good for the platform’s profit,but bad for agents’utility and social welfare. ( Discrimination pricing,Dis-crimination pricing) strategy is a Pareto-dominant equilibrium,and the total social welfare of the two periods is not related to the platform’s strategic target,but related to its pricing strategy.

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  • Online: April 14,2018
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