Versatile Stochastic Two-Sided Platform Models

Abstract

This paper deals with the alternative mathematical modeling of the two-side platform. Two-sided platforms are specific multi-sided platforms that bring together two distinct groups of a model. The stochastic modeling by adapting various innovative mathematical methods including the first exceed theory and the stochastic pseudo-game theory has been applied for describing a two-sided platform more properly. A stochastic pseudo-game model is newly introduced to solve the two-sided platform more effectively. Analytically tractable results for operation thresholds for maximizing profits are provided and it also delivers the optimal balance of a two-sided platform. The paper includes how these innovative models are applied into various two-sided market situations. Additionally, users could conduct these multi-sided models to real business developments and the case practices of these unique models shall help the readers who want to find recommendations of their business situations easily even without having any mathematical background.

Research on pricing models for technology‐trading platforms with different business models: A two‐stage dynamic game model

“…Optimizing the service process, reducing service fees, improving the network externalities of the platform to expand the user base, and reducing the marginal cost of platform users are the main paths to increase platform revenue (Loertscher et al, 2022; Springel, 2021). In the one‐stop service business model, a skewed pricing strategy with higher service fees for technology providers than technology demanders should be adopted; at the same time, the platform profits obtained by adopting the mixed‐system‐charge pricing model should be higher than those obtained by other pricing models (Kim, 2023). In the transition of the business model from “information intermediary” to “one‐stop service,” the mixed‐system‐charge pricing model has an advantage when the increase in the platform matching rate and average number of transactions is more important to increase profits in the information‐intermediary platform.…”

“…2. In the one-stop service business model, a skewed pricing strategy with higher service fees for technology providers than technology demanders should be adopted; at the same time, the platform profits obtained by adopting the mixed-system-charge pricing model should be higher than those obtained by other pricing models (Kim, 2023).…”

The more open, the better? Research on the influence of subject diversity on trust of tourism platforms

“…Therefore, this study introduces the concept of subject diversity to explore the impact of the number of participants on consumer trust. As an element of the traditional dual-governance environment, consumers also receive significant attention in the multi-governance environment (Kim, 2023). Variables such as consumer satisfaction and purchase intention are key points of existing research (Quan et al, 2022).…”