{"title":"Video platforms’ advertising and pricing decisions in the presence of derivative videos","authors":"Xueyu Liu, Shue Mei, Weijun Zhong","doi":"10.1016/j.elerap.2024.101405","DOIUrl":null,"url":null,"abstract":"<div><p>Derivative videos generated based on copyright videos are a common type of user-generated content (UGC) on today’s video platforms. Given the role of derivative videos in resolving consumers’ uncertainty about the quality of paid copyright videos, and their potential to generate advertising revenue, we develop a game-theoretic model to investigate a video platform’s optimal joint-decisions on pricing and advertising to maximize the utilization of derivative videos. We find that including advertisements into derivative videos to derive advertising revenue is not always advantageous for platforms. Under certain conditions, it is more beneficial for platforms to exclude advertisements from derivative videos. The presence of a derivative video may not affect the optimal price of the copyright video. Furthermore, a higher consumer initial quality expectation for the copyright video does not necessarily lead to a greater platform profit in the presence of a derivative video.</p></div>","PeriodicalId":50541,"journal":{"name":"Electronic Commerce Research and Applications","volume":"65 ","pages":"Article 101405"},"PeriodicalIF":5.9000,"publicationDate":"2024-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Electronic Commerce Research and Applications","FirstCategoryId":"91","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1567422324000504","RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 0
Abstract
Derivative videos generated based on copyright videos are a common type of user-generated content (UGC) on today’s video platforms. Given the role of derivative videos in resolving consumers’ uncertainty about the quality of paid copyright videos, and their potential to generate advertising revenue, we develop a game-theoretic model to investigate a video platform’s optimal joint-decisions on pricing and advertising to maximize the utilization of derivative videos. We find that including advertisements into derivative videos to derive advertising revenue is not always advantageous for platforms. Under certain conditions, it is more beneficial for platforms to exclude advertisements from derivative videos. The presence of a derivative video may not affect the optimal price of the copyright video. Furthermore, a higher consumer initial quality expectation for the copyright video does not necessarily lead to a greater platform profit in the presence of a derivative video.
期刊介绍：
Electronic Commerce Research and Applications aims to create and disseminate enduring knowledge for the fast-changing e-commerce environment. A major dilemma in e-commerce research is how to achieve a balance between the currency and the life span of knowledge.
Electronic Commerce Research and Applications will contribute to the establishment of a research community to create the knowledge, technology, theory, and applications for the development of electronic commerce. This is targeted at the intersection of technological potential and business aims.
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