Advertising strategies for peer-supported content services

Authors:
Yung-Ming Li;Hsu-Chia Chang;Jhih-Hua Jhang-Li
Affiliations:
National Chiao Tung University, Taiwan;National Chiao Tung University, Taiwan;National Chiao Tung University, Taiwan
Venue:
Proceedings of the 11th International Conference on Electronic Commerce
Year:
2009

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Abstract

In this research, we analyze advertising strategies adopted by the platform offering peer-supported services and pricing decisions made by the platform offering firm-supported services. The firm-supported service means the traditional online service, whereas the peer-supported service is a novel business model of offering digital goods and services that partly or completely relies on self-organizing communities of individuals who aggregate together to produce a shared outcome. We develop an analytical model in which two service providers implement different business models and further consider whether the peer-supported service should introduce other upstream firms' content to enhance its service quality.