Optimal Registration Price and Expected Revenue Study of C2C Second-Hand Trading Platforms

Abstract

This paper establishes a dynamic pricing model for C2C second-hand trading platforms under the influence of the utility of second-hand goods, analyzes and solves the model, and obtains the optimal registration price and optimal expected revenue of the second-hand platform. The research results show that in an oligopoly market, the optimal expected revenue of C2C second-hand platforms first decreases with the increase of the utility of goods. After the utility of goods increases to a certain value, the expected revenue of the second-hand platform increases with the increase of the utility of goods, and regardless of the utility of goods, the optimal expected revenue of the platform is always greater than zero. In addition, the size of the utility of goods has different impacts on the optimal seller registration fee and the optimal buyer registration fee. Therefore, this paper proposes suggestions such as adding distance ranking function and setting different transaction subsidies for different utility of goods to continuously improve the utility of second-hand goods traded on the platform.