Abstract:
A platform pricing model in two-sided market under the condition of service differentiation is developed. The services provided by platforms are classified into two categories:matching service and value-added service. A platform can provide differentiated matching service and differentiated value-added service. Then, the pricing, the number of users, and profit of the monopoly platform are analyzed for different services, respectively. The study shows that:1) the monopoly platform can get extra users and profits by offering differentiated service; 2) in order to maximize the profits, the platform should charge less for the low-quality matching service and more for the highquality matching service when providing differentiated matching service; 3) the platform should charge the same for both valueadded services and single value-added service.