Pricing and Subsidies

R. Srinivasan ()
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R. Srinivasan: Indian Institute of Management Bangalore

Chapter Chapter 5 in Platform Business Models for Executives, 2023, pp 57-72 from Springer

Abstract: Abstract The strength and direction of network effects and the strategies used to attract users lend to platform firms adopting unique pricing models. Typically, one side of the platform may be subsidized while the other side is monetized. Deciding which side to monetize and which side to subsidize is a critical platform decision. Over and above that, platforms need to define the right pricing model that accentuates network effects and enables sustained growth. These pricing models should increase customers on both sides’ willingness to affiliate (value addition), willingness to pay (brand strength), and willingness to stay (loyalty). At the end of this chapter, you would have learnt about the specific pricing decisions and the different pricing models available for platform businesses.

Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:mgmchp:978-981-99-4910-6_5

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DOI: 10.1007/978-981-99-4910-6_5

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