101. Pricing strategy and platform competition with partial multi-homing agents: When the aggregation platform exists in ride-sharing market.
- Author
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Liu, Bin, Zhao, Xiuyan, and Gu, Qiongqiaong
- Subjects
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PRICES , *RIDESHARING , *SOCIAL services , *NETWORK effect , *CONSUMERS' surplus , *RIDESHARING services , *CONGESTION pricing , *MULTICASTING (Computer networks) - Abstract
• Discusses the platform's pricing strategy and mode selection by the Hotelling model. • Considering the factors such as network effect and levels of user involvement. • Multi-homing on agents could make RSP subsidize agents, and AP charges higher fees. • RSP with access to aggregation harms its service providers in specific conditions. • Multi-homing on agents benefits RSP and social welfare with RSP accessing specific conditions. As the platform of Ride-Sharing Platforms (RSPs), the Aggregation Platform (AP) integrates resources from RSPs which provide an on-demand car-sharing service by matching suitable passengers and drivers. From the view of the platform, consumer surpluses and social welfare, this paper discusses the platform's pricing strategy and mode selection (single-homing or multi-homing on agents) by the Hotelling model considering network effect and levels of user involvement. Research findings include whether RSP accesses the aggregation, the single-homing or multi-homing on the agents does not affect the agent fees both platforms charged. The multi-homing on agents makes the platform accessible to agents if the RSPs are not integrated into the aggregation platform. The multi-homing on agents makes the RSP subsidize agents, and AP charges higher fees to agents when RSP accesses the aggregation. Furthermore, under single-homing or multi-homing on the agents, the RSP with access to the aggregation will permanently harm its service providers but benefit AP and social welfare in specific conditions. Additionally, the multi-homing on agents will harm the aggregation platform service providers but benefit RSP and social welfare in specific conditions when the RSP accesses. [ABSTRACT FROM AUTHOR]
- Published
- 2024
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