Multihoming Competition of Delivery Platforms in the Two-sided Market and Its Effects on Social Welfare

Research Article
Open access

Multihoming Competition of Delivery Platforms in the Two-sided Market and Its Effects on Social Welfare

Nina Gu 1* , Hang Min 2 , Meiru Chen 3
  • 1 Alfred Lerner College of Business & Economics, University of Delaware, Newark, 19716, United State    
  • 2 Art and Science College, New York University, New York, 13235, United State    
  • 3 International Education College, Shandong University of Finance and Economics, Jinan, 250002, China    
  • *corresponding author gun@udel.edu
Published on 21 March 2023 | https://doi.org/10.54254/2754-1169/3/2022783
AEMPS Vol.3
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-915371-15-7
ISBN (Online): 978-1-915371-16-4

Abstract

This paper analyzes the platform competition in a differentiated setting (delivery platform) and the effects of social welfare in two-sided markets in the multi-homing platform. Also identifies interdependence between the two sides served by the same platform. Considering the reality of the economy and the diversity of consumer behavior. Single-homing and multihoming in the real economy is relatively small. The vast majority of users in the platforms of two-sided markets belong to partial multi-homing. Through research, it is found that partial multi-homing of delivery platforms is decided by consumer differentiation and platform differentiation. In particular, higher customer loyalty and product differentiation means higher competitiveness in the market.

Keywords:

platform, two-side market, multihoming, social welfare, competition

Gu,N.;Min,H.;Chen,M. (2023). Multihoming Competition of Delivery Platforms in the Two-sided Market and Its Effects on Social Welfare. Advances in Economics, Management and Political Sciences,3,192-197.
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References

[1]. David Curry. (2021, November). UberEats Revenue and Usage Statistics. From https://www.businessofapps.com/data/uber-eats-statistics/

[2]. Janine Perri (2021, October). Which company is winning the restaurant food delivery war? From https://secondmeasure.com/datapoints/food-delivery-services-grubhub-uber-eats-doordash-postmates/

[3]. Karle, H., & Peitz, M. (n.d.). Segmentation versus Agglomeration: Competition between Platforms with Competitive Sellers, Retrieved October 16, 2021. From https://www.researchgate.net/profile/Heiko-Karle-2/publication/334908075_Segmentation_versus_Agglomeration_Competition_Between_Platforms_with_Competitive_Sellers/links/5e5695684585152ce8f25162/Segmentation-versus-Agglomeration-Competition-Between-Platforms-with-Competitive-Sellers.pdf.

[4]. Wright, J. (n.d.). Multihoming and Oligopolistic Platform Competition - Julian Wright. ScholarSite, Inc. Retrieved October 16, 2021. From https://app.scholarsite.io/julian-wright/articles/multihoming-and-oligopolistic-platform-competition.

[5]. Armstrong and Wright. (2005, November). (PDF) two-sided markets, competitive bottlenecks and exclusive contracts. From https://www.researchgate.net/publication/228609424_Two-sided_markets_with_multihoming_and_exclusive_dealing.

[6]. Choi, J. P. (2010, September 3). Tying in two‐sided markets with multi‐homing. Wiley Online Library. Retrieved October 16, 2021. From https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1467-6451.2010.00426.x.

[7]. Belleflamme, P., & Peitz, M. (2019). Managing competition on a two-sided platform. Journal of Economics & Management Strategy, 28(1), 5–22. From https://doi.org/10.1111/jems.12311

Cite this article

Gu,N.;Min,H.;Chen,M. (2023). Multihoming Competition of Delivery Platforms in the Two-sided Market and Its Effects on Social Welfare. Advances in Economics, Management and Political Sciences,3,192-197.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of the 6th International Conference on Economic Management and Green Development (ICEMGD 2022), Part Ⅰ

ISBN：978-1-915371-15-7(Print) / 978-1-915371-16-4(Online)
Editor：Javier Cifuentes-Faura, Canh Thien Dang
Conference website: https://www.icemgd.org/
Conference date: 6 August 2022
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.3
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. David Curry. (2021, November). UberEats Revenue and Usage Statistics. From https://www.businessofapps.com/data/uber-eats-statistics/

[2]. Janine Perri (2021, October). Which company is winning the restaurant food delivery war? From https://secondmeasure.com/datapoints/food-delivery-services-grubhub-uber-eats-doordash-postmates/

[3]. Karle, H., & Peitz, M. (n.d.). Segmentation versus Agglomeration: Competition between Platforms with Competitive Sellers, Retrieved October 16, 2021. From https://www.researchgate.net/profile/Heiko-Karle-2/publication/334908075_Segmentation_versus_Agglomeration_Competition_Between_Platforms_with_Competitive_Sellers/links/5e5695684585152ce8f25162/Segmentation-versus-Agglomeration-Competition-Between-Platforms-with-Competitive-Sellers.pdf.

[4]. Wright, J. (n.d.). Multihoming and Oligopolistic Platform Competition - Julian Wright. ScholarSite, Inc. Retrieved October 16, 2021. From https://app.scholarsite.io/julian-wright/articles/multihoming-and-oligopolistic-platform-competition.

[5]. Armstrong and Wright. (2005, November). (PDF) two-sided markets, competitive bottlenecks and exclusive contracts. From https://www.researchgate.net/publication/228609424_Two-sided_markets_with_multihoming_and_exclusive_dealing.

[6]. Choi, J. P. (2010, September 3). Tying in two‐sided markets with multi‐homing. Wiley Online Library. Retrieved October 16, 2021. From https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1467-6451.2010.00426.x.

[7]. Belleflamme, P., & Peitz, M. (2019). Managing competition on a two-sided platform. Journal of Economics & Management Strategy, 28(1), 5–22. From https://doi.org/10.1111/jems.12311

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