Impact of Network Structure on New Service Pricing

2021 ◽  
Author(s):  
Saed Alizamir ◽  
Ningyuan Chen ◽  
Sang-Hyun Kim ◽  
Vahideh Manshadi
Keyword(s):  
Network Structure ◽  
Dynamic Pricing ◽  
Network Effects ◽  
Spectral Characteristics ◽  
Network Externality ◽  
Local Network ◽  
Optimal Pricing ◽  
Consumption Growth ◽  
Positive Externality ◽  
The Impact

We analyze a firm’s optimal pricing of a new service when consumers interact in a network and impose positive externality on one another. The firm initially provides its service for free, leveraging network externality to promote rapid service consumption growth. The firm raises the price and starts earning revenue only when a sufficient level of consumer interactions is established. Incorporating the local network effects in a nonstationary dynamic model, we study the impact of network structure on the firm’s revenue and optimal pricing decision. We find that the firm delays the timing of service monetization when it faces a more strongly connected network despite the fact that such a network allows the firm to monetize the service sooner by resulting in faster consumption growth. We also find that the firm benefits from network imbalance; that is, the firm prefers a network of consumers with varying degrees of connections to that with similar degrees of connections. We also study the value of knowing the network structure and discuss how such knowledge impacts the firm’s profitability. Our analyses rely on the techniques from algebraic graph theory, which enable us to solve the firm’s high-dimensional dynamic pricing problem by relating it to the network’s spectral characteristics.

Transformation of education as a metatrend of the digital economy

2020 ◽  
Vol 16 (10) ◽  
pp. 1960-1979
Author(s):  
N.A. Egina ◽  
E.S. Zemskova
Keyword(s):  
Human Capital ◽  
Social Transformation ◽  
Network Effects ◽  
Digital Economy ◽  
Network Education ◽  
Economic Progress ◽  
Positive Externalities ◽  
Communication Processes ◽  
Education Network ◽  
The Impact

Subject. The study focuses on the impact of the digital economy determinants of the education transformation. Objectives. The article provides our own approach treating the education capital as a specific asset of the digital economy, which has an acceleration effect and sets up new trends in education through integrative networks. Methods. The study is based on principles of the systems integration, cross-disciplinary and multidisciplinary approaches. Results. The socio-economic progress was found to be determined with properties of human capital, which are solely specific to the digital economy. In new circumstances, it gets more important for actors of global, national, corporate and social networks to more actively cooperate within distributed networks in order to train high professionals, who would have skills in information networks. Thus, they would raise a new form of human capital – the capital of network education (network-based education capital). We describe positive externalities that arise when the educational sector joins communication processes. We illustrate how educational forms evolves, which are typical of a certain phase of the socio-economic development. The education capital was discovered to grow into a specific asset generating the quasi-rent and working as a social ladder only provided more actors are involved into the network. Conclusions and Relevance. Studying the evolution of educational forms through the cross-disciplinary method, we discovered the need for a system approach, which would help substantiate its transformation in the time of the digital economy, and the emergence of network-based education. These are technologies and tools of the digital economy that become unique factors generating the acceleration effect of the educational capital and ensuring the use of diverse network effects for the formation of intellectual capital and their social transformation.

Principles for sharing economy formation in the digital society

2020 ◽  
Vol 16 (5) ◽  
pp. 800-821
Author(s):  
E.V. Popov ◽  
K.A. Semyachkov
Keyword(s):  
Network Effects ◽  
Sharing Economy ◽  
Network Effect ◽  
Industrial Society ◽  
Economic Activities ◽  
Digital Platforms ◽  
Digital Society ◽  
Modern Economy ◽  
Characteristic Features ◽  
The Impact

Subject. The article addresses economic relations that are formed in various areas of economic application of digital platforms. The target of the research is the modern economy of digital platforms across different economic activities. Objectives. The aim is to systematize principles for share economy formation in the context of the digital society development. Methods. We employ general scientific methods of research. Results. The study shows that the development of digital platforms is one of the most important trends in the development of the modern economy. We classified certain characteristic features of modern digital platforms, analyzed principles for their creation. The paper emphasizes that the network effects achieved through the use of digital platforms are an important factor in the development of the share economy. The network effect describes the impact of the number of the platform users on the value created for each of them. The paper also considers differences in the organization of traditional economy companies and companies that are based on the digital platform model, reveals specifics of changes in socio-economic systems caused by the development of digital platforms, systematizes principles of the sharing economy formation in the context of the digital society development. Conclusions. The analyzed principles for sharing economy development on the basis of digital platforms can be applied to create models for the purpose of forecasting the transformation of economic activity in the post-industrial society.

scholarly journals Pricing Strategies of Logistics Distribution Services for Perishable Commodities

Algorithms ◽  
2018 ◽  
Vol 11 (11) ◽  
pp. 186
Author(s):  
Tao Li ◽  
Yan Chen ◽  
Taoying Li
Keyword(s):  
Dynamic Pricing ◽  
Consumer Satisfaction ◽  
Service Providers ◽  
Time Constraints ◽  
Optimal Pricing ◽  
Pricing Strategies ◽  
Pricing Model ◽  
Logistics Service ◽  
Distribution Services ◽  
Perishable Goods

The problem of pricing distribution services is challenging due to the loss in value of product during its distribution process. Four logistics service pricing strategies are constructed in this study, including fixed pricing model, fixed pricing model with time constraints, dynamic pricing model, and dynamic pricing model with time constraints in combination with factors, such as the distribution time, customer satisfaction, optimal pricing, etc. By analyzing the relationship between optimal pricing and key parameters (such as the value of the decay index, the satisfaction of consumers, dispatch time, and the storage cost of the commodity), it is found that the larger the value of the attenuation coefficient, the easier the perishable goods become spoilage, which leads to lower distribution prices and impacts consumer satisfaction. Moreover, the analysis of the average profit of the logistics service providers in these four pricing models shows that the average profit in the dynamic pricing model with time constraints is better. Finally, a numerical experiment is given to support the findings.

scholarly journals Optimal Pricing Strategy of Electric Vehicle Charging Station for Promoting Green Behavior Based on Time and Space Dimensions

2020 ◽  
Vol 2020 ◽  
pp. 1-16
Author(s):  
Xiaomin Xu ◽  
Dongxiao Niu ◽  
Yan Li ◽  
Lijie Sun
Keyword(s):  
Electric Vehicles ◽  
Optimization Problems ◽  
Power Grid ◽  
Economic Benefits ◽  
Pricing Strategy ◽  
Optimal Pricing ◽  
Electricity Pricing ◽  
Optimal Pricing Strategy ◽  
Charging Stations ◽  
The Impact

Considering that the charging behaviors of users of electric vehicles (EVs) (including charging time and charging location) are random and uncertain and that the disorderly charging of EVs brings new challenges to the power grid, this paper proposes an optimal electricity pricing strategy for EVs based on region division and time division. Firstly, by comparing the number of EVs and charging stations in different districts of a city, the demand ratio of charging stations per unit is calculated. Secondly, according to the demand price function and the principle of profit maximization, the charging price between different districts of a city is optimized to guide users to charge in districts with more abundant charging stations. Then, based on the results of the zonal pricing strategy, the time-of-use (TOU) pricing strategy in different districts is discussed. In the TOU pricing model, consumer satisfaction, the profit of power grid enterprises, and the load variance of the power grid are considered comprehensively. Taking the optimization of the comprehensive index as the objective function, the TOU pricing optimization model of EVs is constructed. Finally, the nondominated sorting genetic algorithm (NSGA-II) is introduced to solve the above optimization problems. The specific data of EVs in a municipality directly under the Central Government are taken as examples for this analysis. The empirical results demonstrate that the peak-to-valley ratio of a certain day in the city is reduced from 56.8% to 43% by using the optimal pricing strategy, which further smooth the load curve and alleviates the impact of load fluctuation. To a certain extent, the problem caused by the uneven distribution of electric vehicles and charging stations has been optimized. An orderly and reasonable electricity pricing strategy can guide users to adjust charging habits, to ensure grid security, and to ensure the economic benefits of all parties.

Real-time and near real-time ZTD from a local network of low-cost dual-frequency GNSS receivers.

2021 ◽  
Author(s):  
Tomasz Hadas ◽  
Grzegorz Marut ◽  
Jan Kapłon ◽  
Witold Rohm
Keyword(s):  
Water Vapor ◽  
Real Time ◽  
Low Cost ◽  
Weather Prediction ◽  
Local Network ◽  
System Component ◽  
Dual Frequency ◽  
Lower Accuracy ◽  
Gnss Receivers ◽  
The Impact

<p>The dynamics of water vapor distribution in the troposphere, measured with Global Navigation Satellite Systems (GNSS), is a subject of weather research and climate studies. With GNSS, remote sensing of the troposphere in Europe is performed continuously and operationally under the E-GVAP (http://egvap.dmi.dk/) program with more than 2000 permanent stations. These data are one of the assimilation system component of mesoscale weather prediction models (10 km scale) for many nations across Europe. However, advancing precise local forecasts for severe weather requires high resolution models and observing system.   Further densification of the tracking network, e.g. in urban or mountain areas, will be costly when considering geodetic-grade equipment. However, the rapid development of GNSS-based applications results in a dynamic release of mass-market GNSS receivers. It has been demonstrated that post-processing of GPS-data from a dual-frequency low-cost receiver allows retrieving ZTD with high accuracy. Although low-cost receivers are a promising solution to the problem of densifying GNSS networks for water vapor monitoring, there are still some technological limitations and they require further development and calibration.</p><p>We have developed a low-cost GNSS station, dedicated to real-time GNSS meteorology, which provides GPS, GLONASS and Galileo dual-frequency observations either in RINEX v3.04 format or via RTCM v3.3 stream, with either Ethernet or GSM data transmission. The first two units are deployed in a close vicinity of permanent station WROC, which belongs to the International GNSS Service (IGS) network. Therefore, we compare results from real-time and near real-time processing of GNSS observations from a low-cost unit with IGS Final products. We also investigate the impact of replacing a standard patch antenna with an inexpensive survey-grade antenna. Finally, we deploy a local network of low-cost receivers in and around the city of Wroclaw, Poland, in order to analyze the dynamics of troposphere delay at a very high spatial resolution.</p><p>As a measure of accuracy, we use the standard deviation of ZTD differences between estimated ZTD and IGS Final product. For the near real-time mode, that accuracy is 5 mm and 6 mm, for single- (L1) and dual-frequency (L1/L5,E5b) solution, respectively. Lower accuracy of the dual-frequency relative solution we justify by the missing antenna phase center correction model for L5 and E5b frequencies. With the real-time Precise Point Positioning technique, we estimate ZTD with the accuracy of 7.5 – 8.6 mm. After antenna replacement, the accuracy is improved almost by a factor of 2 (to 4.1 mm), which is close to the 3.1 mm accuracy which we obtain in real-time using data from the WROC station.</p>

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