Service Pricing Decision of E-Commerce Supply Chain Members Considering Diseconomies of Scale and Network Externalities

Considering diseconomies of scale and network externalities in the e-commerce supply chain(ECSC),we construct an e-platform-led benchmark model and derive the optimal decisions.Then,the model is extended by endogenizing the impact of service level on network externalities.Considering service investment that includes fixed and variable investments,the model is further extended.Comparing the extended models with the benchmark model,we found the following conclusions.Although the e-platform dominates the ECSC,its profit is lower than the manufacturer.The corporate profits,service level,and price increase with network externalities.Increases in diseconomies of scale decrease the corporate profits and service level,but increase the price.A high-quality service combined with network externalities can achieve synergy and improve the e-platform’s economies of scale,further generating a higher profit.Improving network externalities promotes the fair profit distributionin ECSC and achieves stable development.

China’s Western Development Strategy for Modernization Drive

The Western Development Strategy(WDS)is a key aspect of China’s coordinated regional development strategy and effort to build a modern country.The world is undergoing profound changes that have not been witnessed in a century.This paper discusses the WDS’s importance in regards to China’s modernization drive and the great rejuvenation of the Chinese nation.First,this paper identifies the WDS’s mission to improve people’s livelihood in China’s western regions,promote common prosperity for the Eurasian continent,and support the green transition of China’s and Eurasian energy economic and environmental systems,and safeguard ecological security in Asia at large.Second,this paper suggests that the key to the WDS is to reshape the geographical layout of economic activity in the western regions to avoid inefficiency.Specifically,China should develop a compact geographical layout of economic activity in the western regions,introduce a unique competition strategy,as well as find solutions for coordinated regional development based on key river basins.Finally,develop smart internet and inland free ports within the western regions.