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| Research on Retailers’ Operation Strategies: Based on the Two-Sided Market Theory |
| HE Wei-da 2,ZHANG Meng2,HE Dan 2,2 |
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Abstract Differentiation in seller side is a common feature in retailers. The impact of differentiation in seller side on retailers’ operation strategies should be studied. Based on the analysis of difference between differentiation and variety in seller side, this paper builds a theoretical model of two-sided markets, reflecting features of differentiation in seller side on the way that cross-group network effect acts, marginal degression of cross-group network effect, and intra-group competition in seller side. It is found that, with rise of number of differentiated sellers, retailers reduce the subsidies to sellers, charge a markup to sellers originated from competition amongst sellers, and restrict sellers’ number. The lower the degree of sellers’ differentiation, the less the optimal number of differentiated sellers. Differentiation in seller side has impacts on retailers’ exclusive competition strategy and differentiated competition strategy. The conclusions are consistent with the st
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Received: 10 January 2011
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Corresponding Authors:
ZHANG Meng
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2011, Vol. 1 
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