Management Review ›› 2022, Vol. 34 ›› Issue (7): 198-210.

• Marketing • Previous Articles     Next Articles

The Influence of MulItiple Network Externalities on WEEE Recycling Pricing Strategy

Gao Pan, Ding Xuefeng, Qin Ruolan   

  1. College of Economics and Management, China Three Gorges University, Yichang 443002
  • Received:2019-09-16 Online:2022-07-28 Published:2022-08-19

Abstract: In order to find how to solve the recycling problem of WEEE, this paper studies the recycling pricing strategy of WEEE on bilateral platform based on the theory of bilateral market. Firstly, a recycling pricing model with cross-network externality is constructed, and the influence of cross-network externality on pricing strategy is analyzed. Secondly, the influence of multiple network externalities (cross and intra-group) on recycling pricing strategy is comprehensively analyzed, and the two recycling pricing strategies are compared and analyzed. The results show that:in terms of cross-network externalities, bilateral platforms will adopt free or subsidy strategies to the one with higher cross-network externalities, and cross-network externalities have positive effects on WEEE recycling. In terms of multiple network externalities, the recycling pricing strategy of bilateral platforms should take into account the comprehensive influences of cross network externalities and intra-group network externalities, and the intra-group network externalities of consumers have positive effects on WEEE recycling, while the intra-group network externalities of manufacturers have negative effects. Finally, the correctness of the above conclusions is verified by numerical simulation.

Key words: WEEE, multiple network externalities, recycling pricing, bilateral market