Versatile Stochastic Two-Sided Platform Models

TL;DR

This paper introduces innovative stochastic models, including a pseudo-game approach, to better analyze and optimize two-sided platforms, providing practical insights for real-world business applications.

Contribution

It presents a new stochastic pseudo-game model for two-sided platforms, offering analytically tractable solutions for profit maximization and operational thresholds.

Findings

Derived optimal operation thresholds for profit maximization

Introduced a stochastic pseudo-game model for two-sided platforms

Applied models to real business scenarios

Abstract

This paper deals with the alternative mathematical modeling of the two-side platform. Two-sided platforms are specific multi-sided platforms that bring together two distinct groups of a model. The stochastic modeling by adapting various innovative mathematical methods including the first exceed theory and the stochastic pseudo-game theory has been applied for describing a two-sided platform more properly. A stochastic pseudo-game model is newly introduced to solve the two-sided platform more effectively. Analytically tractable results for operation thresholds for maximizing profits are provided and it also delivers the optimal balance of a two-sided platform. The paper includes how these innovative models are applied into various two-sided market situations. Additionally, users could conduct these multi-sided models to real business developments and the case practices of these unique models shall help the readers who want to find recommendations of their business situations easily even without having any mathematical background.