Abstract
With the rapid developments of modern technologies, collaborative economics are warmly welcomed by public. Meanwhile the competitions between collaborative supplier and traditional supplier are getting stronger. Considering the presence of network externality, we study the performances of multi-sided market in which exists both traditional supplier and collaborative supplier characterized by supplying products or services with their idle capacities. Moreover, this paper investigates the conditions under which it would be favorable for collaborative supplier in the competition. And we find that the gap between collaborative supplier’s network size and traditional supplier’s network size is a determinative factor that decides whether the collaborative supplier can gain an absolute advantage in the competitions or not. In addition, the strength of cross-side network effects exerts positive effects on pricing. And the price of collaborative supplier’s products or services can be improved, when the collaborative supplier obtains stronger strength of network externality.
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Acknowledgments
The philosophy and social sciences planning project of Sichuan province: the research on retail statistics method of electronic commerce (SC14TJ05). The research project of the key research base of humanities and social sciences in universities of Sichuan province: the study on the development mode of O2O e-commerce in liquor making enterprises (CJY15-03).
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Yan, J., Zhu, K., Huang, L., Xing, J. (2017). Multi-sided Market’s Performances in the Presence of Network Externality. In: Xu, J., Hajiyev, A., Nickel, S., Gen, M. (eds) Proceedings of the Tenth International Conference on Management Science and Engineering Management. Advances in Intelligent Systems and Computing, vol 502. Springer, Singapore. https://doi.org/10.1007/978-981-10-1837-4_43
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DOI: https://doi.org/10.1007/978-981-10-1837-4_43
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