Highlights A free-floating sharing platform’s investment strategy is examined. Optimal control models are developed and solved. Four strategies are discussed, and the optimal investment strategy is identified. Generally, sharing platform is more profitable with two-stage investment strategies. It is optimal to invest more in the early stage to consolidate the market position.
Abstract Recent free-floating platforms offer service to consumers via a sharing model that can substantially increases the service’s circulation and utilization. This paper examines the optimal investment strategy in product quality, input quantity, and dynamic advertising for a free-floating sharing platform that owns a durable product and leases it to consumers. We model the problem as an optimal control problem and solve it via the maximum principle and an algorithm. We discuss four investment strategies, one single-stage strategy and three two-stage strategies (flexible quality, flexible quantity, and dual-flexible). Our findings provide new insights and implications into the sharing platform’s investment strategy.
Optimal investment strategy of a free-floating sharing platform
2020-04-18
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
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