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- Title
Pricing strategy selection for content platforms considering cash subsidies.
- Authors
Mu Yurong; Zhong Weijun; Mei Shu'e; Zhang Yuxiang
- Abstract
Three pricing strategy models-free, charge, and cash subsidy are constructed for content platforms in a multilateral market based on the game theory. The optimal pricing strategy for a platform is identified by comparing the parameters under each pricing strategy. The results reveal that ad interference cost and ad marginal revenue affect a platform's pricing strategy selection and the cash subsidy amount. The cash subsidy strategy is used when both are within a certain range of thresholds; the charge strategy is adopted when the ad interference cost is very high; and the free strategy is adopted in other cases. In addition, under the cash subsidy strategy, the amount of cash subsidy is negatively correlated to ad interference cost and positively related to ad marginal revenue. Under the same conditions, adopting the cash subsidy strategy is better for all stakeholders and social welfare than the other two pricing schemes. Moreover, ad marginal revenue affects some parameters in the cash subsidy strategy and the free strategy in opposite directions.
- Subjects
PRICING; SUBSIDIES; GAME theory; PUBLIC welfare; DOMESTIC economic assistance
- Publication
Journal of Southeast University (English Edition), 2024, Vol 40, Issue 1, p105
- ISSN
1003-7985
- Publication type
Article
- DOI
10.3969/j.issn.1003-7985.2024.01.012