IDEAS home Printed from https://ideas.repec.org/a/gam/jmathe/v11y2022i1p131-d1016877.html
   My bibliography  Save this article

Versatile Stochastic Two-Sided Platform Models

Author

Listed:
  • Song-Kyoo (Amang) Kim

    (Faculty of Applied Sciences, Macao Polytechnic University, R. de Luis Gonzaga Gomes, Macao, China)

Abstract

This paper deals with the alternative mathematical modeling of the two-side platform. Two-sided platforms are specific multi-sided platforms that bring together two distinct groups of a model. The stochastic modeling by adapting various innovative mathematical methods including the first exceed theory and the stochastic pseudo-game theory has been applied for describing a two-sided platform more properly. A stochastic pseudo-game model is newly introduced to solve the two-sided platform more effectively. Analytically tractable results for operation thresholds for maximizing profits are provided and it also delivers the optimal balance of a two-sided platform. The paper includes how these innovative models are applied into various two-sided market situations. Additionally, users could conduct these multi-sided models to real business developments and the case practices of these unique models shall help the readers who want to find recommendations of their business situations easily even without having any mathematical background.

Suggested Citation

  • Song-Kyoo (Amang) Kim, 2022. "Versatile Stochastic Two-Sided Platform Models," Mathematics, MDPI, vol. 11(1), pages 1-15, December.
    • Handle: RePEc:gam:jmathe:v:11:y:2022:i:1:p:131-:d:1016877
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7390/11/1/131/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7390/11/1/131/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Marc Rysman, 2009. "The Economics of Two-Sided Markets," Journal of Economic Perspectives, American Economic Association, vol. 23(3), pages 125-143, Summer.
    2. Song-Kyoo (Amang) Kim, 2021. "Enhanced IoV Security Network by Using Blockchain Governance Game," Mathematics, MDPI, vol. 9(2), pages 1-13, January.
    3. Song-Kyoo Kim, 2019. "Advanced Mathematical Business Strategy Formulation Design," Papers 1908.06890, arXiv.org, revised Sep 2020.
    4. Jean-Charles Rochet & Jean Tirole, 2003. "Platform Competition in Two-Sided Markets," Journal of the European Economic Association, MIT Press, vol. 1(4), pages 990-1029, June.
    5. Evans David S., 2003. "Some Empirical Aspects of Multi-sided Platform Industries," Review of Network Economics, De Gruyter, vol. 2(3), pages 1-19, September.
    6. Jun Xu, 2013. "A Two-Sided Market Model of Optimal Price Structure for Instant Messenger," Journal of Applied Mathematics, Hindawi, vol. 2013, pages 1-10, December.
    7. Song-Kyoo (Amang) Kim, 2022. "Shifted Brownian Fluctuation Game," Mathematics, MDPI, vol. 10(10), pages 1-12, May.
    8. Song-Kyoo (Amang) Kim, 2020. "A Versatile Stochastic Duel Game," Mathematics, MDPI, vol. 8(5), pages 1-13, May.
    9. Jewgeni H. Dshalalow, 1994. "First excess levels of vector processes," International Journal of Stochastic Analysis, Hindawi, vol. 7, pages 1-8, January.
    10. Kelso, Alexander S, Jr & Crawford, Vincent P, 1982. "Job Matching, Coalition Formation, and Gross Substitutes," Econometrica, Econometric Society, vol. 50(6), pages 1483-1504, November.
    11. Mark Armstrong, 2006. "Competition in two‐sided markets," RAND Journal of Economics, RAND Corporation, vol. 37(3), pages 668-691, September.
    12. Geoffrey G. Parker & Marshall W. Van Alstyne, 2005. "Two-Sided Network Effects: A Theory of Information Product Design," Management Science, INFORMS, vol. 51(10), pages 1494-1504, October.
    13. Laurent Muzellec & Sébastien Ronteau & Mary Lambkin, 2015. "Two-sided Internet platforms: A business model lifecycle perspective," Post-Print hal-03718529, HAL.
    14. Xu, Jun, 2013. "A two-sided market model of optimal price structure for instant messenger," MPRA Paper 62960, University Library of Munich, Germany.
    15. Kojima, Fuhito, 2012. "School choice: Impossibilities for affirmative action," Games and Economic Behavior, Elsevier, vol. 75(2), pages 685-693.
    16. Rishabh Kirpalani & Thomas Philippon, 2020. "Data Sharing and Market Power with Two-Sided Platforms," NBER Working Papers 28023, National Bureau of Economic Research, Inc.
    17. Jay Pil Choi & Doh-Shin Jeon, 2020. "Two-Sided Platforms and Biases in Technology Adoption," CESifo Working Paper Series 8559, CESifo.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christian Stummer & Dennis Kundisch & Reinhold Decker, 2018. "Platform Launch Strategies," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 60(2), pages 167-173, April.
    2. Jullien, Bruno & Pavan, Alessandro & Rysman, Marc, 2021. "Two-sided Markets, Pricing, and Network Effects," TSE Working Papers 21-1238, Toulouse School of Economics (TSE).
    3. Xie, Jiaping & Zhu, Weijun & Wei, Lihong & Liang, Ling, 2021. "Platform competition with partial multi-homing: When both same-side and cross-side network effects exist," International Journal of Production Economics, Elsevier, vol. 233(C).
    4. Cristiano Codagnone & Fabienne Abadie & Federico Biagi, 2016. "The Future of Work in the ‘Sharing Economy’. Market Efficiency and Equitable Opportunities or Unfair Precarisation?," JRC Research Reports JRC101280, Joint Research Centre.
    5. Bach Quang Ho & Yuki Inoue, 2020. "Driving Network Externalities in Education for Sustainable Development," Sustainability, MDPI, vol. 12(20), pages 1-16, October.
    6. Gawer, Annabelle, 2014. "Bridging differing perspectives on technological platforms: Toward an integrative framework," Research Policy, Elsevier, vol. 43(7), pages 1239-1249.
    7. Lapo Filistrucchi & Damien Geradin & Eric van Damme, 2012. "Identifying Two-Sided Markets," Working Papers - Economics wp2012_01.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    8. Justus Haucap & Torben Stühmeier, 2016. "Competition and antitrust in Internet markets," Chapters, in: Johannes M. Bauer & Michael Latzer (ed.), Handbook on the Economics of the Internet, chapter 9, pages 183-210, Edward Elgar Publishing.
    9. Jabbour, Chady & Rey-Valette, Hélène & Maurel, Pierre & Salles, Jean-Michel, 2019. "Spatial data infrastructure management: A two-sided market approach for strategic reflections," International Journal of Information Management, Elsevier, vol. 45(C), pages 69-82.
    10. Liu, He & Li, Xuerong & Wang, Shouyang, 2021. "A bibliometric analysis of 30 years of platform research: Developing the research agenda for platforms, the associated technologies and social impacts," Technological Forecasting and Social Change, Elsevier, vol. 169(C).
    11. Patrick Loux & Mathilde Aubry & Sébastien Tran & Emmanuel Baudoin, 2020. "Multi-sided platforms in B2B contexts : the role of affiliation costs and interdependencies in adoption decisions," Post-Print hal-02376313, HAL.
    12. Gorkem Turgut Ozer & Brad N. Greenwood & Anandasivam Gopal, 2023. "Digital Multisided Platforms and Women’s Health: An Empirical Analysis of Peer-to-Peer Lending and Abortion Rates," Information Systems Research, INFORMS, vol. 34(1), pages 223-252, March.
    13. Junic Kim & Jaewook Yoo, 2019. "Platform Growth Model: The Four Stages of Growth Model," Sustainability, MDPI, vol. 11(20), pages 1-16, October.
    14. Satish Nambisan & Shaker A. Zahra & Yadong Luo, 2019. "Global platforms and ecosystems: Implications for international business theories," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(9), pages 1464-1486, December.
    15. Mohammed Mardan & Mark J. Tremblay, 2022. "Network Effects: Betwixt and Between," CESifo Working Paper Series 10082, CESifo.
    16. Rodolphe Durand & Robert M. Grant & Tammy L. Madsen & David P. McIntyre & Arati Srinivasan, 2017. "Networks, platforms, and strategy: Emerging views and next steps," Strategic Management Journal, Wiley Blackwell, vol. 38(1), pages 141-160, January.
    17. Xi Wan & Benteng Zou, 2020. "Airport Competition in Two-sided Markets," DEM Discussion Paper Series 20-01, Department of Economics at the University of Luxembourg.
    18. Steffen, Nico & Wiewiorra, Lukas & Kroon, Peter, 2021. "Wettbewerb und Regulierung in der Plattform- und Datenökonomie," WIK Discussion Papers 481, WIK Wissenschaftliches Institut für Infrastruktur und Kommunikationsdienste GmbH.
    19. Jan Frederic Nerbel & Markus Kreutzer, 2023. "Digital platform ecosystems in flux: From proprietary digital platforms to wide-spanning ecosystems," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-20, December.
    20. Nishikawa, Bruna T. & Orsato, Renato J., 2021. "Professional services in the age of platforms: Towards an analytical framework," Technological Forecasting and Social Change, Elsevier, vol. 173(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jmathe:v:11:y:2022:i:1:p:131-:d:1016877. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.