{"title":"Business expansion strategy of two-sided platform considering technology R & D effect and congestion effect","authors":"Junxia Yuan, Renhuai Liu, Yuanyang Zou","doi":"10.1108/k-11-2023-2259","DOIUrl":null,"url":null,"abstract":"<h3>Purpose</h3>\n<p>A new model for two-sided platforms is presented, incorporating both the original business and an expanded (new) business. Previous studies have neglected the impact of technology R & D on the new business aspect of two-sided platforms. This study addresses this gap by examining the technology R & D effect on the new business while also considering the congestion effect on the original business. It investigates the optimal pricing and user scales for both the original and new businesses. Additionally, the profits of the original business, the new business, and the overall two-sided platform are analyzed.</p><!--/ Abstract__block -->\n<h3>Design/methodology/approach</h3>\n<p>Previous studies have overlooked the technology R & D effect on the new business aspect of two-sided platforms. Therefore, this study focuses on examining the technology R & D effect on the new business. Additionally, the congestion effect on the original business is considered. To determine the optimal prices for both sides of the original and new businesses, <em>a</em> game sequence model is introduced.</p><!--/ Abstract__block -->\n<h3>Findings</h3>\n<p>The optimal price on the service buyers (defined <em>b</em> side) of new business increases only with regard to technology R & D effect on <em>b</em> side of new business increasing. The optimal price on <em>b</em> side of new business is equal to half of the <em>b</em>-side R & D effect. The optimal profit of original business decreases with regard to the technology R & D effect of new business and cross-market network effect on the services provider (defined <em>s</em> side) between original business and new business increasing, respectively. To gain optimal profit of two-sided platform, the two-sided platform adopts some strategies to improve the congestion.</p><!--/ Abstract__block -->\n<h3>Originality/value</h3>\n<p>A new two-sided platform model is stated, in which the technology R & D effect is embraced. The expanded business scenario of two-sided platform is considered, that is, the two-sided platform has one business firstly and a new business is developed or improved of two-sided platform. To solve the prices strategy of original business and new business, a game sequence of the original business and new business is presented.</p><!--/ Abstract__block -->","PeriodicalId":49930,"journal":{"name":"Kybernetes","volume":"339 1","pages":""},"PeriodicalIF":2.5000,"publicationDate":"2024-06-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Kybernetes","FirstCategoryId":"94","ListUrlMain":"https://doi.org/10.1108/k-11-2023-2259","RegionNum":4,"RegionCategory":"计算机科学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"COMPUTER SCIENCE, CYBERNETICS","Score":null,"Total":0}
引用次数: 0
Abstract
Purpose
A new model for two-sided platforms is presented, incorporating both the original business and an expanded (new) business. Previous studies have neglected the impact of technology R & D on the new business aspect of two-sided platforms. This study addresses this gap by examining the technology R & D effect on the new business while also considering the congestion effect on the original business. It investigates the optimal pricing and user scales for both the original and new businesses. Additionally, the profits of the original business, the new business, and the overall two-sided platform are analyzed.
Design/methodology/approach
Previous studies have overlooked the technology R & D effect on the new business aspect of two-sided platforms. Therefore, this study focuses on examining the technology R & D effect on the new business. Additionally, the congestion effect on the original business is considered. To determine the optimal prices for both sides of the original and new businesses, a game sequence model is introduced.
Findings
The optimal price on the service buyers (defined b side) of new business increases only with regard to technology R & D effect on b side of new business increasing. The optimal price on b side of new business is equal to half of the b-side R & D effect. The optimal profit of original business decreases with regard to the technology R & D effect of new business and cross-market network effect on the services provider (defined s side) between original business and new business increasing, respectively. To gain optimal profit of two-sided platform, the two-sided platform adopts some strategies to improve the congestion.
Originality/value
A new two-sided platform model is stated, in which the technology R & D effect is embraced. The expanded business scenario of two-sided platform is considered, that is, the two-sided platform has one business firstly and a new business is developed or improved of two-sided platform. To solve the prices strategy of original business and new business, a game sequence of the original business and new business is presented.
目的 本文提出了一个新的双面平台模型,其中包含原有业务和扩展(新)业务。以往的研究忽视了技术研发对双面平台新业务方面的影响。本研究通过研究技术研发对新业务的影响,同时考虑对原有业务的拥堵影响,弥补了这一空白。它研究了原有业务和新业务的最优定价和用户规模。此外,还分析了原有业务、新业务和整个双面平台的利润。因此,本研究重点考察技术研发对新业务的影响。此外,还考虑了拥堵对原有业务的影响。为了确定原有业务和新业务双方的最优价格,引入了一个博弈序列模型。研究结果新业务的服务购买方(定义为 b 方)的最优价格仅随着新业务 b 方的技术 Ramp; D 效应的增加而增加。新企业 b 端的最优价格等于 b 端 Ramp &; D 效应的一半。原企业的最优利润分别随新企业的技术 Ramp; D 效应和原企业与新企业之间服务提供商(定义为 s 方)的跨市场网络效应的增加而减少。为了获得双面平台的最优利润,双面平台采取了一些策略来改善拥塞状况。原创性/价值提出了一个新的双面平台模型,其中包含了技术 R & D 效应。考虑了双面平台的扩展业务情景,即双面平台先有一项业务,然后开发或改进双面平台的新业务。为了解决原有业务和新业务的价格策略,提出了原有业务和新业务的博弈序列。
期刊介绍:
Kybernetes is the official journal of the UNESCO recognized World Organisation of Systems and Cybernetics (WOSC), and The Cybernetics Society.
The journal is an important forum for the exchange of knowledge and information among all those who are interested in cybernetics and systems thinking.
It is devoted to improvement in the understanding of human, social, organizational, technological and sustainable aspects of society and their interdependencies. It encourages consideration of a range of theories, methodologies and approaches, and their transdisciplinary links. The spirit of the journal comes from Norbert Wiener''s understanding of cybernetics as "The Human Use of Human Beings." Hence, Kybernetes strives for examination and analysis, based on a systemic frame of reference, of burning issues of ecosystems, society, organizations, businesses and human behavior.