Optimizing Investment in Two-Sided Platforms
Tian-Tian Yang 1, Xiao Xuan 2, Wen-Ya Huang 2, Wen-Qi Duan 2 *
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1 College of Internet Economy, Jinhua Polytechnic, Jinhua 321017, CHINA
2 College of Economics and Management, Zhejiang Normal University, Jinhua 321004, CHINA
* Corresponding Author

This article belongs to the special issue "Problems of Application Analysis in Knowledge Management and Science-Mathematics-Education".

Abstract

Platform owners need to manage its internal cash flow as investments on buyer side and on seller side. Investment on buyer side will increase using experiences and investment on seller side can create an atmosphere of innovation. It is much necessary to allocate and optimize the total investment on each side users so as to obtain maximal profit. A three-period game model is developed to find the optimal investment decision. And during the process, we find that platforms can be divided into four kinds as investment non-sensitive platform, Seller-sensitive platform, Buyer-sensitive platform, and Investment sensitive platform. It is also found that the platform system structure influences the distribution of total value on platform owner, buyer side, and seller side.

License

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Article Type: Research Article

https://doi.org/10.12973/ejmste/80314

EURASIA J Math Sci Tech Ed, 2017 - Volume 13 Issue 12, pp. 7629-7636

Publication date: 15 Nov 2017

Article Views: 387

Article Downloads: 110

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