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A Study on Social Network Sites Based on Two-sided Markets Theory

Author: DongZhiHui
Tutor: SunJianJing
School: Xiamen University
Course: Technology Economics and Management
Keywords: Bilateral market Social networking sites Pricing Model
CLC: F49
Type: Master's thesis
Year: 2009
Downloads: 663
Quote: 6
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Abstract


Social networking sites as one of the most popular Internet application , academia its theoretical study is very small. Bilateral market as the latest achievements of recent years, the field of industrial organization theory , ideal for parties involved pricing on the platform used to analyze the social networking site operators . Social networking sites as the object of study , mainly proposed to solve the two problems : first , the social networking site belongs to what type of bilateral market ? Second , how to use the the bilateral market theory to guide the social networking site platform operators to determine the best platform for all parties price, in order to achieve the purpose of maximizing profits ? First of all, according to the classification of the bilateral market , through the analysis of the social networking site media features and plug-in platform characteristics , found that social networking sites both the bilateral market characteristics of the media platform and software platform is a species with multiple bilateral market integrated network platform . Secondly, Armstrong (2006) analytical framework on bilateral market expansion, in the case of ordinary user side there is a direct network externalities , platform operators the monopoly optimal pricing model and obtained some useful conclusions. The results show that , due to the presence of the user side of the direct network externalities , the platform usually take the strategy of price subsidies for users of social networking sites , in order to attract more users to the platform . Advertising is the most important social networking sites is the most stable income , the greater the external benefits advertisers , the platform operators developed advertisers the higher the price . Platform operators on the pricing of the third-party application developers , as the case may be , large external benefits to users when the third - party application developers , platform operators , the purpose of attracting users , its price subsidies .

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CLC: > Economic > Information Industry economy ( Zonglun,)
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