Abstracts of Annual Conference of Japan Society for Management Information
Annual Conference of Japan Society for Management Information 2012 Autumn
Session ID : H2-5
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Abstract
Effectiveness of low pricing strategy in platform business
An analysis by multi-agent simulation
*Motoki SasagawaTomoko KajiyamaNoritomo Ouchi
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Abstract
The platform business has attracted attention in recent years. Platform provider gains profit by offering the infrastructure and rule for several different user groups' exchange. It is an important issue for platform provider to increase number of users of platform. The low pricing strategy is an effective way to attract users. However, whether the low pricing strategy leads to increase of platform provider's profit or not is unclear. The purposes of this study are (i) to construct the model of user's activity in platform business and (ii) to provide suggestions for pricing strategy in platform business. This study demonstrates the impact of pricing on profit of platform provider is clarified by multi-agent simulation.
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© 2012 by Japan Society for Management Information
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