Subsidy strategy analysis of operating system vendor with network externality effect
Xiaofeng Zhang, Xiaojuan Zhang, Chunhui Cao, Hongcai Dai, Haixu Song
Available Online October 2017.
- https://doi.org/10.2991/febm-17.2017.3How to use a DOI?
- network externality effect, operating system vendor, subsidy policy, developer, consumer
- Owing to network externality effect is key characteristic of smartphone operating system, the vendor subsidizes app developer or consumer to extend market share. In this paper, using a two-period model framework, we study performance in cases of subsidizing developer and consumer separately. Then, the performances in two subsidy policies are compared. We find that subsidizing customer should be chosen if the development cost is low. And if the development cost is moderate, subsidizing developer can generate greater performance. Besides, the vendor must quit subsidizing if the development cost is high.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
TY - CONF AU - Xiaofeng Zhang AU - Xiaojuan Zhang AU - Chunhui Cao AU - Hongcai Dai AU - Haixu Song PY - 2017/10 DA - 2017/10 TI - Subsidy strategy analysis of operating system vendor with network externality effect BT - Second International Conference On Economic and Business Management (FEBM 2017) PB - Atlantis Press SN - 2352-5428 UR - https://doi.org/10.2991/febm-17.2017.3 DO - https://doi.org/10.2991/febm-17.2017.3 ID - Zhang2017/10 ER -