Pricing and Quality Strategies in Crowdfunding with Network Externality

Xu, Yang; Wang, Xu; Zhou, Qiang

doi:10.1007/s10957-022-02117-9

Cited by 4 publications

(2 citation statements)

References 28 publications

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“…Notably, heightened externality result in consumer aversion to corporate social responsibility investment, posing a detriment to the company. Generally, the network externality inherent in bilateral platforms has been thoroughly studied in the existing literature, revealing their influence on pricing mechanisms (Xu et al, 2023). While a substantial body of literature has focused on the network externality with the firm's strategy (Zhang et al, 2021), scant attention has been paid to the network externalities of online recycling.…”

Section: Literature Reviewmentioning

confidence: 99%

Trade-in program in online platforms considering network externalities and recycling services

Yu,

Li,

2024

Preprint

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Consumers trade their used products for new ones through online platforms, thereby integrating internet shopping and recycling. Two trade-in models are developed, i.e., the platform model where the manufacturer cooperates with an online retail platform to sell products and the online retail platform introduces trade-in program and manufacturer model where the manufacturer's own platform introduces trade-in program. This study examines the trade-in program offered by online platforms with a consideration of network externalities and heterogeneous consumers, and analyzes the decisions of pricing and recycling service. The research indicates that heightened network externalities can enhance recycling services, promote trade-in program development, and increase the demand for trade-in. The trade-in recycling service gets higher in the manufacturer model, whereas the sales price in the platform model is elevated due to sales commission rates. However, the manufacturer model does not always have higher market demand than the platform model, when both the commission rate and recycling revenue are high, the platform model have higher market demand. Although the manufacturer profits more than the online retail platform in the platform model, it is suggested that the manufacturer should introduce the trade-in program on the self-owned platform since the profit of manufacturer is larger under the manufacturer model.

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Section: Literature Reviewmentioning

confidence: 99%

Trade-in program in online platforms considering network externalities and recycling services

Yu,

Li,

2024

Preprint

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“…Hence, the current work extends the story of channel selection by exploring digital products vendors' optimal decisions on distribution channels in the context of the two-sided market. Some researchers, for instance, Wei et al [32], Zhao et al [33], and Xu et al [34], have explored the network externality in the two-sided platform, and inspired by these recent works, the current work examines how network externality and some other factors afect the optimal channel strategies and benefts of vendors.…”

Section: Literaturementioning

confidence: 99%

Channel Management for Digital Products in the Two-sided Market with Network Externality Effects

2023

Discrete Dynamics in Nature and Society

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Channel selection is a critical trade-off for digital products firms whose products are characterized by network externality. This work develops the models of consumers’ utility impacted by the network externality for two channel strategies of the digital product firms in the two-sided market: direct channel strategy and platform channel strategy. Deriving from the consumers’ utility, the optimization models of the two channel strategies are presented. The optimization models are solved through the Lagrangian method, and the comparative statics analysis is conducted to investigate the effect of network externality on optimality. Mathematical results show that if the intensity of network externality in the online platform surpasses that in the direct channel, the platform channel strategy dominates the other channel strategy; otherwise, the direct channel strategy is the firms’ optimal decision. In addition, the two channels share the equal optimal price, and the firms’ profit (and demand) would be positively impacted by the network effect and the products’ features but negatively impacted by the consumers’ learning cost. This work provides decision support for the digital product firms on channel selection in the context of the two-sided market.

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Joint price and quality optimization strategy in crowdfunding campaign

Zhou

Wang

2023

International Journal of Production Economics

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Pricing and Quality Strategies in Crowdfunding with Network Externality

Cited by 4 publications

References 28 publications

Trade-in program in online platforms considering network externalities and recycling services

Trade-in program in online platforms considering network externalities and recycling services

Channel Management for Digital Products in the Two-sided Market with Network Externality Effects

Joint price and quality optimization strategy in crowdfunding campaign

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