Research Article

Channel Management for Digital Products in the Two-sided Market with Network Externality Effects

Table 1

Notations and definitions in the current work.

NotationsDefinition

Heterogeneous consumers
The consumer who is indifferent between buying and not buying products the from direct/platform channel
The consumer who is indifferent between adopting and not adopting platform services
Features of the digital product/platform service
Price in the direct/platform channel (decision variable)
Profit in the direct/platform channel (objective function)
Intensity of network externality in the direct/platform channel
Installed base of the digital products in the direct/platform channel
Installed base of platform services
Demand of the digital products in the direct/platform channel
Demand of platform services
Learning cost of the consumers in adopting digital products/platform service