Management Review ›› 2021, Vol. 33 ›› Issue (3): 292-306.

• Logistics and Supply Chain Management • Previous Articles     Next Articles

Research on Pricing Strategy of Two-sided Logistics Platform with Considering the Intra-group Network Externality of Service Providers

Ding Xuefeng, Chen Qiancheng   

  1. College of Economics and Management, China Three Gorges University, Yichang 443002
  • Received:2019-08-29 Online:2021-03-28 Published:2021-04-06

Abstract: This paper takes two-sided logistics platform as the research object, which provides logistics service matching for the supply and demand of logistics service. We establish the pricing model for the platform toward buyers and sellers, and then give judging conditions of different pricing strategies for platform influenced by network externalities. We also analyze the influence of intra-group network externalities of logistics service providers on platform pricing strategies, the participation in logistics service consumers or providers, and the platform's profit. The research shows that charging, for-free or subsidy strategies should be selectively adopted the toward logistics service consumers and providers according to different quantitative and size relations between each parameter of network externalities. The negative and positive effects of intra-group network externality on pricing to logistics service providers are different due to the magnitude of the relationship between the two types of inter-group network externalities; while they only have a negative impact on two-sided platform users' willingness to participate and platform profits. But its strength is relevant to the sum of inter-group network externalities, the greater sum of them, the lower negative impact of intra-group network externalities. Finally, we recommend that the platform should take measures to stimulate logistics service consumers and providers to create more utility for each other; and at the same time, stimulate more users to trade through the platform, especially the service consumers, which could reduce the negative impact of intra-group network externalities within the logistics service providers.

Key words: two-sided logistics platform, supply-demand matching of service, intra-group network externality, pricing strategy