When a platform owner offers a service at a loss to one group to attract a high-value segment that drives the platform's revenue, what is this pricing strategy called?
This pricing strategy is called a subsidy-based model or a two-sided market pricing strategy. In this model, a platform connects two distinct groups, often referred to as sides of the market. The platform owner provides a service at a price below cost or even for free to a price-sensitive group, which is known as the subsid....
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