Abstract
Against the background of increasingly mature mobile internet eco-system, internet companies have been continuing pursuing the innovation of internet applications. The action has brought about not only more clicks from the netizens but also gave rise to mounting network burden. Telecom service providers are now faced with the dual pressure from both the soaring broadband building and maintenance costs as well as the declining traditional operating revenues. They wish to find a way to abolish the previous unified pricing model and shift it into the differential charging model by offering graded data flow services. Consequently, the controversy over “net neutrality” has been aroused in the whole society. In this article we analyze the optimum prices in different stages of the internet eco-system, and establish two-sided market model for further research.
Similar content being viewed by others
References
Krämer, J., Wiewiorra, L., Weinhardt, C.: Net neutrality: a progress report. Inf. Econ. Policy 37, 794–813 (2013)
Lee, D., Kim, Y.-H.: Empirical evidence of network neutrality-the incentives for discrimination. Inf. Econ. Policy 29, 288–292 (2014)
Filistrucchi, L., Geradin, D., Damme, E.V.: Market definition in two-sided markets: theory and practice. J. Compet. Law Econ. 10(2), 293–339 (2014)
Katz, M., Shapiro, C.: Network externalities, compitetion and compatibility. Am. Econ. Rev. 75, 424–440 (1985)
Katz, M., Shapiro, C.: Technology adoption in the presence of network externalities. J. Polit. Econ. 94(4), 822–841 (1986b)
Katz, M., Shapiro, C.: Product introduction with network externalities. J. Econ. Perspect. 40(1), 55–84 (1992)
Armstrong, M.: Competition in two-sided markets. RAND J. Econ. 37(3), 668–691 (2006)
Nicholas, E., Joacim, T.: Network neutrality on the internet: a two-sided market analysis. Inf. Econ. Policy 24(2), 91–104 (2012)
Viotto, J.: Competition and regulation of crowdfunding platforms: a two-sided market approach. Commun. Strateg. 1, 33–50 (2015)
Chou, M.C., Khian, S.C., Chungc-Piaw, T., Zheng, H.: Newsvendor pricing problem in a two-sided market. Prod. Oper. Manag. 21(1), 204–208 (2012)
Njoroge, P., Ozdaglar, A.E., Stier-Moses, N.E., Weintraub, G.Y.: Investment in two sided markets and the net neutrality debate. Rev. Netw. Econ. 12(4), 355–402 (2013)
Lee, R.S.: Vertical integration and exclusivity in platform and two-sided markets. Am. Econ. Rev. 103(7), 2960–3000 (2013)
Kang, J.S., Downing, S.: Keystone effect on entry into two-sided markets: an analysis of the market entry of WiMAX. Technol. Forecast. Soc. Change 94, 170–186 (2015)
Liu, Q., Serfes, K.: Price discrimination in two-sided markets. J. Econ. Manag. Strategy 22(4), 768–786 (2013)
von Ehrlich, M., Greiner, T.: The role of online platforms for media markets—two-dimensional spatial competition in a two-sided market. Int. J. Ind. Organ. 31(6), 723–737 (2013)
Hagiu, A., Halaburda, H.: Information and two-sided platform profits. Int. J. Ind. Organ. 34(1), 25–35 (2014)
Gabszewicz, J.J., Wauthy, X.Y.: Vertical product differentiation and two-sided markets. Econ. Lett. 123(1), 58–61 (2014)
Reisinger, M.: Two-part tariff competition between two-sided platforms. Eur. Econ. Rev. 68(3), 168–180 (2014)
Vasconcelos, H.: Is exclusionary pricing anticompetitive in two-sided markets? Int. J. Ind. Organ. 40, 1–10 (2015)
Wang, Z.: Price cap regulate on in a two-sided market: intended and unintended consequences. Int. J. Ind. Organ. 45, 28–37 (2016)
Delgawy, E.I., La, R.J.: Interaction between a content provider and a service provider and its efficiency. In: IEEE International Conference on Communications, pp. 5890–5895 (2015)
Economides, N., Tåg, J.: Modeling the welfare effects of net neutrality regulation: a response to Caves’s comment. Inf. Econ. Policy 24, 288–292 (2012)
Hagiu, A., Wright, J.: Multi-sided platforms. Int. J. Ind. Organ. 43, 162–174 (2015)
Casadesus-Masanell, R., Llanes, G.: Investment incentives in open-source and proprietary two-sided platforms. J. Econ. Manag. Strategy 24(2), 306–324 (2015)
Baranes, Edmond: The interplay between network investment and content quality: implications to net neutrality on the Internet. Inf. Econ. Policy 28, 57–69 (2014)
Acknowledgements
This paper was supported by Major Program of the National Social Science Foundation of China (Grant No.15ZDB154), National Basic Research Program of China (973 Program, Grant No. 2012CB315805), and National Natural Science Foundation of China (Grant No. 71172135).
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Ou, X., Lv, T. & Chen, X. Research on telecom service providers’ network charge strategy based on two-sided market theory. Cluster Comput 22 (Suppl 2), 2963–2969 (2019). https://doi.org/10.1007/s10586-018-1711-4
Received:
Revised:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10586-018-1711-4