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August 18, 2025Management Science

Pricing Control and Regulation on Online Service Platforms

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Authors

GCGérard P. CachonTDTolga DizdarerGTGerry Tsoukalas

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Overview

Analysis reveals implications of centralized and decentralized pricing on competition, suggesting a flexible fee structure.

Key Points

  • Centralized pricing enables competition management, but lacks cost visibility, which can lead to inefficiencies.
  • Decentralized pricing lets agents adapt to their costs, but may result in extreme pricing issues depending on the market.
  • The study advocates for adopting an affine fee structure to optimize decentralized pricing without loss of efficiency.
  • This framework provides platforms with strategic options for classifying agents as independent contractors.

Cite This Study

Cachon et al. (2025) studied this question.

synapsesocial.com/papers/68af33efcf1dd9ea359e94behttps://doi.org/10.1287/mnsc.2023.04078
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Also Consider

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  3. 3Price Coordination with Asymmetric Information Sharing: Theory and Evidence2025
  4. 4Dynamic Pricing and Subsidy Strategies in Public Service Platforms with Private Participation: A Two-Level Stackelberg Game Approach2025
  5. 5Research on the Regulatory Issues of Algorithmic Personalised Pricing--Taking Ctrip Platform as an Example2025