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On Classification and Strength of Selfnetwork Externality
in B2B Monopoly Platform Based on Twosided Market
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CAO Junhao1，CHEN Hongmin1，SHI Bide2
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(1.Antai College of Economics & Management, Shanghai Jiaotong University, Shanghai 200052, China;2.School of Businss, Cardiff University, Cardiff, UK, CF10 3XQ)
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Abstract Based on category description for selfnetwork externalities of B2B platform, this paper builds a twosided market theoretical mode, and focuses on whether a B2B monopoly platform has selfnetwork externality or not, which selfnetwork externalities of bilateral users is more strong, and reveals the internal mechanism of selfnetwork externalities for B2B monopoly platform. The studies show that in B2B monopoly platform, the selfnetwork externalities from platform bilateral user’s has always been brought about a negative effect. Both the competition selfnetwork externality and the demonstration selfnetwork externality of the seller are stronger than that of the buyer. Combined with theoretical analysis, it puts forward some competitive strategies for B2B platform, such as improving service level, expanding demonstration selfnetwork externality, and pricing obliquely.
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Received: 25 March 2010
Published: 31 December 2010
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