Quality Differentiation and Optimal Pricing Strategy in Multi-Sided Markets

저자 : Kim, Soo Jin, and Pallavi Pal.
학술지 : The Quarterly Review of Economics and Finance
발간일 : 2025년 1월
원문 링크 : https://doi.org/10.1016/j.qref.2024.101900

“This paper analyzes the generalized quality differentiation model in multi-sided markets with positive externalities, which leads to new insights into the optimal pricing structure of the firm. We find that quality differentiation for buyers affects not only the side involving differentiation but also the other side due to cross-side network externalities, thereby affecting the pricing structure of multi-sided firms. In addition, quality differentiation affects the strategic relationships among all the choice variables for the platform, enabling the platform to strategically use quality differentiation to increase its profits.”