Research Article
Mathematical Optimization on Hybrid Channel Pricing Digital Products in Two-Sided Market with Network Effect
Table 1
Notations and definitions in current work.
| Notation | Definition |
| | The heterogeneous consumers | / | The consumer who is indifferent between buying and not buying product from direct/platform channel | | The consumer who is indifferent between adopting and not adopting platform service | / | Features of the digital products/platform service | / | Price in the direct/platform channel (decision variable) | / | Profit in the direct/platform channel (objective function) | / | Intensity of network externality in the direct/platform channel | / | Installed base of the digital products in direct/platform channel | | Installed base of the platform service | / | Demand of the digital products in direct/platform channel | | Demand of the platform service | / | Learning cost of the consumers in adopting digital products/platform service |
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