Newsvendor pricing problem in a two-sided market

Mabel C. Chou, Chee-Khian Sim, Chung-Piaw Teo, Huan Zheng

Research output: Contribution to journalArticlepeer-review

Abstract

We study the pricing problem of a “platform” intermediary to jointly determine the selling price of the platforms (hardware) sold to consumers and the royalty charged to content developers for content (software), when the demands for content and for platforms are interdependent. Our model elucidates the impact of supply chain replenishment costs and demand uncertainty on the strategic issues of platform pricing in a two-sided market.
Original languageEnglish
Pages (from-to)204-208
JournalProduction and Operations Management
Volume21
Issue number1
DOIs
Publication statusPublished - 2012

Keywords

  • two-sided market
  • newsvendor problem
  • pricing strategy

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