Influencing factors for platform firms price strategy: Take the bankcard platform as examples in China

Abstract

Taking the Bankcard platforms of 14 Chinese commercial banks from 2001 to 2022 as examples, we have developed an influencing factors model for the price strategy of platform enterprises. The results indicate that the cross-network external strength and unit switching cost of the platform enterprise do not have a significant effect on pricing from the consumer side. However, the endogenous value and unit cost of innovation have a significant impact on the pricing of the platform on the consumer side. Furthermore, the cross-network external strength and unit switching cost have significant effects on pricing from the merchant's (seller's) side, while the endogenous value and unit cost of innovation do not have significant effects on pricing from the merchant's (seller's) side. This paper aims to uncover the pricing factors of platform enterprises and proposes an empirical model that can lead to a better understanding of the pricing strategy of platform enterprises.