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Two-sided market is a kind of intermediary market with indirect network effect, and in such a market, the utility of one group of users (or agents) will be affected by that of another group of users. These platforms do not produce products, but they can facilitate transactions between supply and demand of two or more parties, and obtain revenue by charging appropriate fees or earning the difference. The platform economy is influencing the goods/service providers and consumers in a new way.
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2016 Tian and Jiang 2018 Zhao and Chen 2019 Pei et al. The phenomenon of “platform economy” has gradually emerged, and it has been rapidly integrated into manufacturing industries and people’s life everywhere, such as online shopping platform, social media platform, life service platform, third-party payment and sharing platform (Qin et al. With the rapid development of network technology, the combination of Internet and traditional industries is fast deepening.
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Finally, we show how to adjust the investment strategy of the two-sided platform under platform cooperation. Furthermore, we adopt the Nash bargaining framework and introduce platform bargaining power parameters to obtain the optimal cooperation and sharing strategy.
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We find that the cooperation leads to a larger demand and a higher total profit, but might lead to higher registration prices for the platform users. Compared with the scenario of non-cooperation, we derive the conditions under which platform cooperation can increase demands and increase platforms’ profits, and analyze how cooperation affects the optimal pricing strategies.
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We analyze how the two-sided platform makes decisions by considering the changes of network externalities from the cooperation with the social network platform. Inspired by the cooperation between Meituan, a two-sided platform, and WeChat, a social media platform, this paper investigates the two-sided platform’s scalable decisions on when to cooperate and how to optimize the pricing and investment decisions. In the current severe situation caused by the coronavirus pandemic, both the traditional unilateral market platform and the emerging two-sided market platform are in urgent need of a change in operation mode to reduce the marketing cost. Two-sided platforms have a specific impact on sales, customer experience and transaction efficiency of both sides. In recent years, with the rapid development of Internet technology, the integration of platform economy and e-commerce has become a popular business model.