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Abstract Behavior based price discrimination is the common strategy of competitive platforms. By establishing two-stage dynamic pricing model with partial multi-homing，the impact of behavior based price discrimination strategy on pricing and profit of the platform with cross group externalities is studied. The results show that platform using BBPD for new or old users depends on the market share of the first phase. Different from the result of the traditional market, the impact of BBPD on the platform’s profit depends on the size of the network externality. The profit of BBPD is decreasing when the network externality is big or small, so platform has internal motivation to adopt uniform pricing, while the profit of BBPD is increasing when the network externality is moderate, so platform has internal motivation to adopt BBPD behavior based price discrimination.
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Received: 28 March 2016
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2016, Vol. 13 
