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.
| Notations | Definition |
| | 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 |
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