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A Two-Sided Market Model of Optimal Price Structure for Instant Messenger
Author
Source
Journal of Applied Mathematics
Issue
Vol. 2013, Issue 2013 (31 Dec. 2013), pp.1-10, 10 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2013-12-05
Country of Publication
Egypt
No. of Pages
10
Main Subjects
Abstract EN
Instant messenger (IM) is one of the most popular Internet applications all over the world.
This paper examines the pricing problem of IM based on two-sided market model.
IM serves as a two-sided platform, which gets both Internet users and advertisers on board.
This paper concludes that IM operator adopts a heavily skewed price structure that favors IM users both under monopolistic case and under horizontal differentiated duopolistic case.
When advertising revenue is large enough relatively to marginal cost for serving IM users, IM users can enjoy free service provided by IM operators.
The competitive equilibrium of duopolistic case is not necessarily symmetric when advertisers choose singlehoming.
Even in the symmetric equilibrium platform would rather deter all advertisers.
American Psychological Association (APA)
Xu, Jun. 2013. A Two-Sided Market Model of Optimal Price Structure for Instant Messenger. Journal of Applied Mathematics،Vol. 2013, no. 2013, pp.1-10.
https://search.emarefa.net/detail/BIM-497214
Modern Language Association (MLA)
Xu, Jun. A Two-Sided Market Model of Optimal Price Structure for Instant Messenger. Journal of Applied Mathematics No. 2013 (2013), pp.1-10.
https://search.emarefa.net/detail/BIM-497214
American Medical Association (AMA)
Xu, Jun. A Two-Sided Market Model of Optimal Price Structure for Instant Messenger. Journal of Applied Mathematics. 2013. Vol. 2013, no. 2013, pp.1-10.
https://search.emarefa.net/detail/BIM-497214
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-497214