Advance Selling in the Presence of Strategic Consumers and Network Externality
Lin Zhi-bing
Zhou Zheng-yong
Wu Shao-xiong
Abstract：To analyze the effects of advance selling discount and advance selling quantity, the demand function was found based on the customers′strategic behavior and the network externality.The optimal ad-vance selling quantity and advance selling condition were determined by a comparative static analysis.And the results show that the optimal advance selling quantity was affected by the market demand.Further-more, the numerical analysis was used for describing the effects of the network externality on retailer′s ad-vance selling discount, advance selling condition and advance selling quantity.The results show that, while the factor of network externality was higher than 0 .3 , the advance selling strategy benefited the re-tailer, and while the factor was higher than 0.6, the advance selling discount would decrease and the fac-tor and the profit of retailer would increase.All the conclusions can be reference for the retailer′selling strategies.
Keywords：strategic consumeradvance sellingnetwork externalitynewsvendor model
Publication Date：2015-01-01
Online Publishing Date：2025-08-15(First online date of this platform, not the publication date of the document)
Pages：8( 66-72,107 )