Optimal two‐period pricing decisions and value‐added service strategies of two‐sided platform considering suppliers entry timing

• DOI: 10.1111/itor.13441
• Publication Date: 2024-02-14T07:00:18Z
• Authors: Huabao Zeng; Tong Shu; Yue Yu; Jiaming Cheng
• Keywords: Externality; Pricing strategies; Value (mathematics)

Abstract The flourishing platform business model has been rapidly integrated into manufacturing industries, and value‐added service (VAS) provided by the platforms become a critical part of enhancing competitiveness. This study investigates optimal two‐period pricing decisions VAS strategies two‐sided for manufacturing. For both supplier manufacturer side, decides entry fees in each period provides differentiated quality basic services, as well (if any). Moreover, manufacturer's utility accessing is influenced cross‐network externality, which related to number suppliers period. In presence supplier's varying timing, three are available including: (1) Period 1 (Model S1), (2) 2 S2), (3) manufacturers or M). We establish game under strategy. Then, platform's derived, performances compared. Findings demonstrate that when externality strength large, always prefers Model S1; only comparatively low, selects S2; otherwise, chooses M. also extends scenario bilateral B1) B2). Notably, not willing offer VAS, especially cost coefficient relatively high.