JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE) ›› 2019, Vol. 54 ›› Issue (7): 117-123.doi: 10.6040/j.issn.1671-9352.0.2018.451

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Analysis of strategies in multi-sided markets

XU Jin1, ZHANG Jiang-hua2   

  1. 1. School of Mathematics, Shandong University, Jinan, 250100, Shandong, China;
    2. School of Management, Shandong University, Jinan, 250100, Shandong, China
  • Published:2019-06-27

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Abstract: Multi-sided markets is an important phenomenon in economy. A model of multi-sided markets including platform, users, advertisers and content providers is constructed. The platform pricing of social welfare maximization and profit maximization is studied, the profits of the platform in two-sided and multi-sided markets is compared, and the optimal service level of the platform is discussed. The following conclusions are drawn:(1)The fees of the platform for the 3 types of participants are related to the cost, the external contribution of participants and the flexibility of their participation;(2)Whether the platform chooses a multi-sided markets model with advertisers depends on the positive and negative impact of advertising on the platform, that is, to compare the direct benefits of advertising to the platform and the loss of the number of users caused by the reduction of advertising;(3)The optimal service level provided by the platform to users is related to the externality of users to content providers and advertisers, the cost of service provided by the platform will be transferred to other participants.

Key words: multi-sided markets, welfare analysis, pricing, optimal service, strategy

CLC Number: 

  • O225
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