scholarly journals Revenue from matching platforms

2021 ◽  
Vol 16 (3) ◽  
pp. 799-824
Author(s):  
Philip Marx ◽  
James Schummer
Keyword(s):  
Heterogeneous Agents ◽  
Price Level ◽  
Market Size ◽  
Optimal Price ◽  
Short Side ◽  
Contingent Fees ◽  
Allocation Decisions

We consider the pricing problem of a platform that matches heterogeneous agents using match‐contingent fees. Absent prices, agents on the short side of such markets capture relatively greater surplus than those on the long side (Ashlagi et al. 2017). Nevertheless we show that the platform need not bias its price allocation toward either side. With independently drawn preferences, optimal price allocation decisions are independent of market size or imbalance; furthermore, changes in the optimal price level move both sides' prices in the same direction. In contrast, preference homogeneity biases price allocation in a direction that depends on the form of homogeneity; furthermore, changes in market imbalance move both sides' prices in opposite directions. These effects arise due to the exclusivity of matchings in two‐sided market settings.

THE PRICING STRATEGY OF COMPLETE PRE-ORDERED MERCHANDISE UNDER DISCOUNTED PROFIT FOR MAXIMIZING

2008 ◽  
Vol 25 (05) ◽  
pp. 613-624 ◽  
Author(s):  
MIAO-SHENG CHEN ◽  
FU-CHIEN TSAI
Keyword(s):  
Price Level ◽  
Rate Function ◽  
Pricing Strategy ◽  
Optimal Price ◽  
Price Variability ◽  
Intention To Purchase ◽  
Price Levels ◽  
Demand Rate ◽  
Potential Demand ◽  
Customer Purchases

When a customer steps into a complete pre-ordered store, he will review the merchandise and consider his demands based on the merchandise price levels and price variability at that point in time. However, after declaring his intention to purchase said merchandise, the store assistant informs him that the merchandise will not be available for a period of time. This is a typical stock-out merchandise scenario in which customers may only place an order for delivery at a later point in time. Therefore, whether or not customer purchases merchandise does not just depend on the price at that moment. It is also influenced by the expected future increase or decrease of the price of the merchandise and the length of time before the store can supply the merchandise. In this study, we will explore how to set price levels at each point in time during the stock-out period in order to maximize the discounted profit after considering the influence of the price level, price variability, and waiting time on customer demand. The main assumption in this study is that customers' potential demand rate function at a given point during the stock-out period is a linear function of the price level and price variability at that point. Also, the ratio function of customers willing to wait for the merchandise is an exponential function of the length of time before the merchandise will be delivered. Constructing a mathematical model that is concrete to discuss the above problem, to derive the optimal price function of the merchandise at each point in time, and to discuss the characteristics of this function are the main parts of this study.

Optimal price-level flexibility

1988 ◽  
Vol 10 (3) ◽  
pp. 449-458
Author(s):  
James Peery Cover
Keyword(s):  
Price Level ◽  
Optimal Price

scholarly journals Possibilities of Application of Static Investment Appraisal Methods for Optimizing Purchase under Conditions of Mine Rescue Service

2014 ◽  
Vol 60 (1) ◽  
pp. 35-44
Author(s):  
Jana Magnusková ◽  
Zdeněk Pavelek ◽  
Lucie Krčmarská
Keyword(s):  
Price Level ◽  
Investment Decisions ◽  
Investment Project ◽  
Optimal Price ◽  
Rescue Service ◽  
Specific Investment ◽  
Investment Appraisal ◽  
Long Term Effect ◽  
Fixed Assets

Abstract The present article focuses on the importance of making investment decisions and its long-term effect on the economy of companies. It presents a specific investment in the recovery of rescue equipment used for interventions in the irrespirable or deleterious environment on an example of the company HBZS, a.s. The objective is to evaluate the effectiveness of the investment project using static methods in relation to setting an optimal price level for leasing the equipment. The optimization of such setting is examined in terms of the economic lifetime of relevant tangible fixed assets

scholarly journals Pricing of Platforms in Two-Sided Markets with Heterogeneous Agents and Limited Market Size

2019 ◽  
Vol 10 (1) ◽  
pp. 83-98
Author(s):  
Zhenhua Feng ◽  
Таосин Лиу ◽  
Владимир Мазалов ◽  
Vladimir Mazalov ◽  
Jie Zheng
Keyword(s):  
Optimization Problem ◽  
Heterogeneous Agents ◽  
Pricing Strategy ◽  
Market Size ◽  
Optimal Pricing ◽  
Limited Size ◽  
Corner Solution ◽  
The Social ◽  
Optimal Pricing Strategy ◽  
Equilibrium Market

We study a two-sided market represented by network platforms and heterogeneous agents. Our setup departs from Armstrong (2006)’s monopoly model by assuming both (1) a continuum of agents of limited size on each side of the market and (2) heterogeneous utility of agents with Hotelling specification. We show that the monopoly’s optimal pricing strategy always results in a corner solution in terms of the equilibrium market share. We also solve for the social planner’s optimization problem and obtain a similar corner solution result. In addition, the exact values for the equilibrium in the case of duopoly for a two-sided market on two platforms are obtained.

Pricing of Platforms in Two-Sided Markets with Heterogeneous Agents and Limited Market Size

2019 ◽  
Vol 80 (7) ◽  
pp. 1347-1357 ◽  
Author(s):  
Z. Feng ◽  
T. Liu ◽  
V. V. Mazalov ◽  
J. Zheng
Keyword(s):  
Heterogeneous Agents ◽  
Market Size ◽  
Two Sided Markets

scholarly journals Optimal Price Level Under Slowing Economic Performance Using Simple Growth-Inflation Threshold Models

2021 ◽  
Author(s):  
Mohtar Rasyid ◽  
Anita Kristina ◽  
Putu Ayu Pramitha Purwanti
Keyword(s):  
Economic Growth ◽  
Inflation Rate ◽  
Price Level ◽  
Optimal Level ◽  
Basic Question ◽  
Analysis Method ◽  
Optimal Price ◽  
Economic Growth Rate ◽  
Simple Growth ◽  
Threshold Regression Model

The purpose of this study was to evaluate the threshold of inflation that is tolerant of Indonesia’s economic growth rate. The basic question to be answered was what level of inflation is safe enough for economic growth. To answer this question, this study used Indonesian macroeconomic data, specifically data on inflation and economic growth between 1969-2017 sourced from the Central Statistics Agency and Bank Indonesia. The data analysis method used was a threshold regression model that was repeated manually by entering an acceptable inflation simulation value based on inflation experience in Indonesia. The simulation results showed that the inflation threshold that is safe for growth is around 7 to 8 percent per year. However, the model showed that inflation of 3 percent is the optimal level for growth. One concludes that an inflation rate of around 3 percent can be used as a guide in determining the inflation target in Indonesia. Keywords: growth, inflation, stability, threshold

scholarly journals Modelagem de Equações Estruturais Aplicada à Reação a Bonificações e Desdobramentos: integrando as hipóteses de sinalização, liquidez e nível ótimo de preços.

2011 ◽  
Vol 9 (1) ◽  
pp. 69
Author(s):  
Kelmara Mendes Vieira ◽  
João Luiz Becker
Keyword(s):  
Factor Analysis ◽  
Confirmatory Factor Analysis ◽  
Hybrid Model ◽  
Structural Model ◽  
Price Level ◽  
Measurement Model ◽  
Structural Equations ◽  
Optimal Price ◽  
Confirmatory Factor ◽  
Stock Dividends

This work develops a hybrid model of structural equations able to take simultaneously the hypotheses of signaling, liquidity, and optimal price level to explain the reaction to the stock dividends and stock splits. In the measurement model four constructs were defined: trading activity, spread, size, and price. The structural model defines extant relations from the proposition of 22 sub-hypotheses. A sample of 321 splits performed in the Brazilian market between 1990 and 2004 was used for assessing the model. Confirmatory factor analysis revealed the validity and coherence of the four constructs. The structural model confirmed 9 original sub-hypotheses.

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