|
| Parameter | Description |
|
| Pn | The benefit of nondifferential pricing by e-commerce company to consumer |
| Pd | The benefit of differential pricing by e-commerce company to consumer |
| ∆P | The additional benefit of differential pricing by e-commerce company to the loyal consumer |
| M | Compensation of e-commerce company to the loyal consumer for differential pricing |
| Te | The reputation value of the loyal consumer to e-commerce company |
| Ul | The utility obtained by the loyal consumer from purchasing goods |
| Ud | The utility obtained by the disloyal consumer from purchasing goods |
| Cc | The cost of consumer complaint |
| α | Probability of loyal consumer discovering differential pricing under government loose supervision, and |
| The cost of strict supervision by the government regulatory department |
| N | Social reputation loss caused by differential pricing under government loose supervision |
| R | The social benefit of nondifferential pricing under the government strict supervision |
| Ie | Fine by government regulatory department for differential pricing to e-commerce company |
| Ip | Fine by government imposed on the platform for nonsupervision of e-commerce company information resulting in differential pricing |
| S | The normal benefit obtained by the government from the operation of the e-commerce platform |
| W | The benefit of the platform reasonably providing information to the e-commerce company |
| Cp | The cost of the platform’s information supervision on the e-commerce company |
| F | Fines imposed by the platform to e-commerce company for differential pricing during information supervision |
| β | The proportion of the fine imposed by the e-commerce platform for differential pricing of e-commerce company, |
| Tp | The reputation value of the loyal consumer to the e-commerce platform |
|