An Empirical Study on Pricing Mechanisms and Consumer Welfare Effects in Platform Markets Under the Background of Digital Economy

Mingya Lei

Simen Owen Academic Proceedings Series, 2026, vol. 5, 303-313

Abstract: Amid the rapid acceleration of global digital transformation, platform markets have emerged as the fundamental core carrier of the modern digital economy. Within these complex ecosystems, unique pricing mechanisms profoundly influence both market resource allocation and the equitable distribution of consumer welfare. This comprehensive study focuses specifically on the intricate dynamics of multi-sided pricing, dynamic pricing, personalized pricing, and platform subsidy pricing strategies currently deployed in contemporary platform markets. Based on extensive microdata collected from typical, industry-leading platform enterprises and adopting rigorous empirical research methods, this paper systematically explores the operational characteristics of these diverse pricing mechanisms. Furthermore, it quantitatively assesses their direct and indirect impacts on overall consumer welfare. The empirical results demonstrate that these pricing mechanisms consistently exhibit dual effects. On the positive side, they can significantly improve market matching efficiency, substantially expand overall transaction scale, and enhance consumer preference matching accuracy to varying degrees. Conversely, however, they also introduce critical challenges and face persistent issues such as inconsistent merchant quality, excessive price volatility during peak demand periods, algorithmic data-driven discrimination, and potentially unsustainable long-term welfare effects. Ultimately, this study significantly enriches the existing theoretical system of platform economy research. It provides robust empirical support for government regulators seeking to formulate effective fair competition and consumer protection policies, while simultaneously offering strategic decision-making references for platform enterprises aiming to optimize their pricing strategies and achieve sustainable, long-term economic development.

Keywords: platform markets; pricing mechanisms; consumer welfare; digital economy; econometric analysis (search for similar items in EconPapers)
Date: 2026
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