Research Article
On the Pricing Decision of Monopoly Online Car-Hailing Platform Considering Network Externality and Commission Rate
@INPROCEEDINGS{10.1007/978-3-030-72792-5_60, author={Yu Xiao-Jun}, title={On the Pricing Decision of Monopoly Online Car-Hailing Platform Considering Network Externality and Commission Rate}, proceedings={Simulation Tools and Techniques. 12th EAI International Conference, SIMUtools 2020, Guiyang, China, August 28-29, 2020, Proceedings, Part I}, proceedings_a={SIMUTOOLS}, year={2021}, month={4}, keywords={Online car-hailing platform Pricing decision Network externality Commission rate Two-sided market}, doi={10.1007/978-3-030-72792-5_60} }- Yu Xiao-Jun
Year: 2021
On the Pricing Decision of Monopoly Online Car-Hailing Platform Considering Network Externality and Commission Rate
SIMUTOOLS
Springer
DOI: 10.1007/978-3-030-72792-5_60
Abstract
With the development of mobile internet, the online car-hailing (OCH) services have become one of the in urban transportation modes available. Accordingly, the OCH services pricing decision surfaces as a new transportation management problem that should be properly addressed. This paper analyzes the pricing and cooperation revenue sharing issues between the platform and the group of drivers by means of the dynamic game theory and the two-sided market theory. In order to reflect the characteristic of the practical situation of OCH industry, the network externality and the driver commission rate are considered in this model. The formula of the user payment, the driver commission rate, the user registration fee, the user and driver scale, and the platform profit at the equilibrium state as well as the relationship between them and network externality are analyzed. The simulation results validate the correctness of our analytical results.
