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Annals of Operations Research

, Volume 263, Issue 1–2, pp 209–230 | Cite as

Merchant selection and pricing strategy for a platform firm in the online group buying market

  • Tomohiro Ando
Data Mining and Analytics
  • 376 Downloads

Abstract

The online group-buying market is characterized by intense competition between brokers, called platform firms, which function as intermediaries between merchants and consumers. In an environment of intense competition, merchant selection and pricing strategies are critical for platform firms. This paper employs business analytics to support strategy formulation for these firms by forecasting market demand and analyzing competitive environments. We apply the proposed decision framework, which relies on business analytics, to a study of the online group-buying market in Japan.

Keywords

Business analytics Disequilibrium Endogeneity Online group buying 

Notes

Acknowledgments

We are grateful to the Guest Editor, two anonymous referees for their helpful suggestions and comments. We also appreciate the constructive comments of participants at the 2014 INFORMS Workshop on Data Mining and Analytics. We have benefited from fruitful discussion with Anand Bodapati and Chen Hsiao. This research was partially supported by the Japan Center for Economic Research and a Grant-in-Aid for Young Scientists (B) from the Japan Society for the Promotion of Science.

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Copyright information

© Springer Science+Business Media New York 2015

Authors and Affiliations

  1. 1.Melbourne Business SchoolUniversity of MelbourneCarltonAustralia

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