Document Type
Article
Journal/Book Title/Conference
Proceedings of the 2021 5th International Conference on E-Business and Internet
Volume
1
Publisher
Association for Computing Machinery
Publication Date
1-24-2022
First Page
41
Last Page
45
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 License.
Abstract
This paper is motivated by the prevailing pricing structure and competition in Chinese food-delivery market. Currently, two oligarchs in China’s food-delivery market are Meituan-Dianping Takeout and ELEME Takeout, which accounting for more than 95% of the market share. Both of these platforms charge a percentage commission based on per-transaction price and involve per-agent fee. So far, few research has been found to make analysis under such realistic pricing structure, and we help to fill this gap by developing a model for platform competition based on the model developed by Armstrong. The results we get under the realistic pricing structure and cost verify the propositions of Armstrong under per-transaction fee, which may stem from that the percentage commission charged on per-transaction price is similar to the per-transaction fee.
Recommended Citation
Tongyao Jiang, Jie Chen, and Zhixuan Xiang. 2021. Two-sided Platform Pricing and Competition under Realistic Pricing Structure. In 2021 5th International Conference on E-Business and Internet (ICEBI 2021), October 15–17, 2021, Singapore, Singapore. ACM, New York, NY, USA, 5 pages. https://doi.org/10.1145/3497701.3497733