Service Pricing Decision of E-Commerce Supply Chain Members Considering Diseconomies of Scale and Network Externalities

Considering diseconomies of scale and network externalities in the e-commerce supply chain (ECSC), we construct an e-platform-led benchmark model and derive the optimal decisions. Then, the model is extended by endogenizing the impact of service level on network externalities. Considering service investment that includes fixed and variable investments, the model is further extended. Comparing the extended models with the benchmark model, we found the following conclusions. Although the e-platform dominates the ECSC, its profit is lower than the manufacturer. The corporate profits, service level, and price increase with network externalities. Increases in diseconomies of scale decrease the corporate profits and service level, but increase the price. A high-quality service combined with network externalities can achieve synergy and improve the e-platform's economies of scale, further generating a higher profit. Improving network externalities promotes the fair profit distributionin ECSC and achieves stable development.