Zixuan Zuo
ABSTRACT
This paper studies the duopoly competition of two giant online food-delivery companies in China, namely Meituan and Ele.me. By using a modified Hotelling model, the paper outlines the firms' respective competitive strategies on pricing and qualities of services. The model solves for the optimal equilibrium prices, level of quality, and profits for both firms. In addition, it provides insights on social welfare and further extensions for improvements based on the symmetric results generated by the model.
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Index Terms
- Study on The application of The Hotelling Model in The Strategic Marketing Competition Between Meituan and Ele.me
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