Proceedings of the Second International Conference On Economic and Business Management (FEBM 2017)

Subsidy strategy analysis of operating system vendor with network externality effect

Authors
Xiaofeng Zhang, Xiaojuan Zhang, Chunhui Cao, Hongcai Dai, Haixu Song
Corresponding Author
Xiaofeng Zhang
Available Online October 2017.
DOI
https://doi.org/10.2991/febm-17.2017.3How to use a DOI?
Keywords
network externality effect, operating system vendor, subsidy policy, developer, consumer
Abstract
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.

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Proceedings
Second International Conference On Economic and Business Management (FEBM 2017)
Part of series
Advances in Economics, Business and Management Research
Publication Date
October 2017
ISBN
978-94-6252-423-1
ISSN
2352-5428
DOI
https://doi.org/10.2991/febm-17.2017.3How to use a DOI?
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  -