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Chinese Journal of Management Science ›› 2013, Vol. 21 ›› Issue (3): 185-192.

Previous Articles    

Research on Pricing Strategy of Online Group Buying in Two-sided Network

TANG Fang-cheng, CHI Kun-peng   

  1. School of Economics Management, Beijing Jiaotong University, Beijing 100044, China
  • Received:2012-07-03 Revised:2013-04-09 Online:2013-06-30 Published:2013-06-20

Abstract: Online group buying is a business model characterized with two-sided market. The challenging problems that group buying firms face are how to meet the needs of consumers and suppliers and how to develop the right bilateral price structure and pricing level. According to the nature of two-sided markets group purchase site, this paper constructs the pricing models by considering multi-homing of consumers and suppliers. Furthermore, the pricing models under the monopoly pattern and competition equilibrium are presented. This study investigates the effect of some key factors of platform fixed cost, search matching, degree of service differentiation and cross-group network effects change on pricing mechanism. Finally, a case study of Lashou is employed to test the proposed pricing mechanism and tactics.

Key words: online group buying, two-sided market, pricing strategy, network effect

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