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

Nina Gu; Hang Min; Meiru Chen

doi:10.54254/2754-1169/3/2022783

Research Article

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Published on 21 March 2023

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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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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

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2754-1169/3/2022783

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

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References

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About volume

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

Conference website: https://www.icemgd.org/

ISBN：978-1-915371-15-7(Print) / 978-1-915371-16-4(Online)

Conference date: 6 August 2022

Editor：Javier Cifuentes-Faura, Canh Thien Dang

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.3

ISSN：2754-1169(Print) / 2754-1177(Online)

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