The developer’s optimal distribution strategy in the differentiated platform: the value of user feedback data and negotiation

Zhitang Li, Cuihua Zhang () and Ruxia Lyu
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Zhitang Li: Northeastern University
Cuihua Zhang: Northeastern University
Ruxia Lyu: Northeastern University

Electronic Commerce Research, 2025, vol. 25, issue 1, No 19, 553-593

Abstract: Abstract As a variety of online game products are released on different platforms, developers actively collect user review data, we explore the optimal distribution channels of the online game considering application platform service level and network externalities, while also assessing the data's value in the context of digital products. In comparison to prior research, our challenge is to examine the distribution strategy of online games across regional and international platforms, and to explore the influence of data value on the distribution strategy. We have drawn some interesting conclusions. Firstly, regardless of data value, the optimal distribution channel is the international application platform when its inadaptability is low. However, when the inadaptability of the international platform is high, the optimal distribution channels are the domestic and foreign platforms. Secondly, developers may distribute a low-profit product and there is a tendency to release products for free. Additionally, the benefits resulting from data value can compensate for the drawbacks caused by the increased inadaptability of international platforms. Thirdly, the platforms and developers will determine whether to implement the data value strategy by analyzing the positive and negative data value. Furthermore, we explore the tripartite negotiation and bilateral negotiation between the developer and the platform. And the role of the platform as a bilateral application platform for developers and customers is analyzed.

Keywords: E-commerce; Application platform; Distribution channel; Data value; Negotiation (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10660-023-09706-4

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