Abstract: The price strategy of platform pricing plays an important role in assisting managers who participate in platform competition. Amony different strategies, two important ones, loyalty rewarding and uniform pricing have their own emphasis. In this paper, a two-stage dynamic model for platform pricing is proposed, and the impact of price strategies on platform pricing and profit is comparably analyzed in the model, and then some propositions are obtained. The results show that the pricing of the platform at the second stage and the customer retention rate are positively correlated with the endogenous transfer costs generated by incentives to loyal customer. The equilibrium results of the unified pricing model show that the total profit changes of the two stages depend on the exogenous transfer cost and the expected discount coefficient of users.

Key words: platform competition, switching cost, cross network externality, loyalty rewards