Abstract
As online-to-offline (O2O) market boom, O2O on-demand platforms are facing the challenge on competition. In this paper, we model the competitive dynamic pricing strategy of O2O on-demand platform with stochastic demand and uncertain supply provided by multihoming delivery riders using optimal control theory. Considering the single-homing consumers and partial multihoming delivery riders under network effect, we explore the impact of multihoming behavior on O2O on-demand platform. Our result reveals that competitive dynamic pricing strategy effectively stimulates supply-demand and decreases delayed orders loss cost.
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