Social and Behavioral Sciences Commons^™

Two-Sided Platform Pricing And Competition Under Realistic Pricing Structure, Tongyao Jiang, Jie Chen, Zhixuan Xiang

Economics and Finance Student Research

This paper is motivated by the prevailing pricing structure and competition in Chinese food-delivery market. Currently, two oligarchs in China’s food-delivery market are Meituan-Dianping Takeout and ELEME Takeout, which accounting for more than 95% of the market share. Both of these platforms charge a percentage commission based on per-transaction price and involve per-agent fee. So far, few research has been found to make analysis under such realistic pricing structure, and we help to fill this gap by developing a model for platform competition based on the model developed by Armstrong. The results we get under the realistic pricing structure and …