Offensive pricing strategies for online platforms
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AbstractPricing strategy is important to a platform not only for branding but also for capturing the willingness-to-pay of customers. With keen competition, few platforms survive to reach the growth and maturity stages. This study examines offensive pricing strategies in a pure duopoly where two platforms have products with high dependency. We also examine how the effectiveness of message dissemination, simulated by WOM marketing, affects offensive pricing strategies in the platform business. We developed a multi-agent model to simulate pricing strategies and message dissemination.
Acceptance Date14/06/2019
All Author(s) ListFeng Li, Timon Chih-ting Du, Ying Wei
Journal nameInternational Journal of Production Economics
Year2019
Month10
Volume Number216
PublisherElsevier
Pages287 - 304
ISSN0925-5273
eISSN1873-7579
LanguagesEnglish-United States
KeywordsOffensive pricing strategies, Online platform, Message dissemination, Word-of-mouth marketing

Last updated on 2021-10-01 at 02:20