The influence of customer on-line reviews on pricing strategy of meal ordering platform
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Abstract
Taking the meal ordering platform with customer on-line review function as the object of the research, based on the fundamental of existing literatures, it was studied that how the meal ordering platform make pricing strategy to maximize profit when both positive intra-group network externality and inter-group network externality exist. The result shows that when the network externality of seller is greater than the network externality of buyer, the increase of intra-group network externality brought by on-line review will make the platform reduce subsidies for buyer. Otherwise the increase of intra-group network externality brought by on-line review will make the platform charge higher price for seller.
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