Offensive pricing strategies for online platforms

Feng Li, Timon Chih-ting Du and Ying Wei

International Journal of Production Economics, 2019, vol. 216, issue C, 287-304

Abstract: Pricing 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.

Keywords: Offensive pricing strategies; Online platform; Message dissemination; Word-of-mouth marketing (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:216:y:2019:i:c:p:287-304

DOI: 10.1016/j.ijpe.2019.06.009

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