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Chinese Journal of Management Science ›› 2021, Vol. 29 ›› Issue (11): 45-54.doi: 10.16381/j.cnki.issn1003-207x.2020.2401

• Articles • Previous Articles    

Switching Cost and Pricing Strategy of Two-sided Platform Based on Consumers’ Salience Preference

PAN Xiao-jun   

  1. Antai School of Economics and Management, Shanghai Jiaotong University, Shanghai 200030, China
  • Received:2020-12-18 Revised:2021-05-08 Published:2021-11-22
  • Contact: 潘小军 E-mail:xjpan@sjtu.edu.cn

Abstract: Recently, due to the antitrust investigation of Apple, Google, Amazon and other technology platform enterprises in the United States, and China issued the “Anti-monopoly Guide in the field of platform economy”, the switch cost of platform enterprises has attracted widespread attention. When joining the platform, users need to consider factors such as cross-network externalities, switching costs and prices, and face more complex trade-off decisions. The salience theory holds that consumers generally have trade-offs between goods and services that have differences in multiple attributes, and consumers will have different preferences for different attributes in different scenarios. Bordalo et al put forward the salience theory and studied the salience preference of consumers. Based on the salience theory, this paper aims to study the influence of cross-network externality and consumer salience preference on the pricing strategy and profit of monopoly two-sided platform when there is salience thinking in consumers’ switching cost attribute and price attribute.

Key words: salience theory; switching cost; two-sided platform; cross network externality

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