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Research Article

Pricing by Two-sided Platform under the Condition of Service Differentiation

Tang Dong-Ping, Wang Qiu-Ju and Ding Yu-Ning
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We study the pricing by platform in two-sided market when it offers differentiated service. In this study, we classify platform services into two categories: Matching service and value-added service. We analyze the pricing, the number of users and the profit of the monopoly platform when it offers differentiated matching service and differentiated value-added service, respectively. The study shows platform can get extra users and profits by offering differentiated service. And a monopoly platform may prefer to charge less for the low quality level and charge more for the high quality level when offer differentiated matching service, while the platform prefer to charge the same for value-added service compared with the condition of offering single value-added service.

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  How to cite this article:

Tang Dong-Ping, Wang Qiu-Ju and Ding Yu-Ning , 2013. Pricing by Two-sided Platform under the Condition of Service Differentiation. Journal of Applied Sciences, 13: 2897-2902.

DOI: 10.3923/jas.2013.2897.2902


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