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Merchant selection and pricing strategy for a platform firm in the online group buying market

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  • Tomohiro Ando

    (University of Melbourne)

Abstract

The online group-buying market is characterized by intense competition between brokers, called platform firms, which function as intermediaries between merchants and consumers. In an environment of intense competition, merchant selection and pricing strategies are critical for platform firms. This paper employs business analytics to support strategy formulation for these firms by forecasting market demand and analyzing competitive environments. We apply the proposed decision framework, which relies on business analytics, to a study of the online group-buying market in Japan.

Suggested Citation

  • Tomohiro Ando, 2018. "Merchant selection and pricing strategy for a platform firm in the online group buying market," Annals of Operations Research, Springer, vol. 263(1), pages 209-230, April.
    • Handle: RePEc:spr:annopr:v:263:y:2018:i:1:d:10.1007_s10479-015-2036-9
    DOI: 10.1007/s10479-015-2036-9
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    2. Min Liu & Sajid Anwar, 2023. "Can price discrimination improve the performance of online retail platforms?," Australian Economic Papers, Wiley Blackwell, vol. 62(2), pages 257-271, June.
    3. Liu, Weihua & Yan, Xiaoyu & Wei, Wanying & Xie, Dong, 2019. "Pricing decisions for service platform with provider’s threshold participating quantity, value-added service and matching ability," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 410-432.

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