TY - GEN
T1 - Market Your Venue with Mobile Applications
T2 - 2018 IEEE Conference on Computer Communications, INFOCOM 2018
AU - Yu, Haoran
AU - Iosifidis, George
AU - Shou, Biying
AU - Huang, Jianwei
N1 - Publisher Copyright:
© 2018 IEEE.
PY - 2018/10/8
Y1 - 2018/10/8
N2 - Many mobile applications (abbrev. apps) reward the users who physically visit some locations tagged as POIs (places-of-interest) by the apps. In this paper, we study the POI-based collaboration between apps and venues (e.g., restaurants and cafes). On the one hand, an app charges a venue and tags the venue as a POI, which attracts users to visit the venue and potentially increases the venue's sales. On the other hand, the venue can invest in the app-related infrastructure (e.g., Wi-Fi networks and smartphone chargers), which enhances the users' experience of using the app. However, the existing POI pricing schemes of the apps (e.g., Pokemon Go and Snapchat) cannot incentivize the venue's infrastructure investment, and hence cannot achieve the most effective app-venue collaboration. We model the interactions among an app, a venue, and users by a three-stage Stackelberg game, and design an optimal two-part pricing scheme for the app. This scheme has a charge-with-subsidy structure: the app first charges the venue for becoming a POI, and then subsidizes the venue every time a user interacts with the POI. Compared with the existing pricing schemes, our two-part pricing better incentivizes the venue's investment, attracts more users to interact with the POI, and achieves a much larger app revenue. We analyze the impacts of the app's and venue's characteristics on the app's optimal revenue, and show that the apps with small and large congestion effects should collaborate with opposite types of venues.
AB - Many mobile applications (abbrev. apps) reward the users who physically visit some locations tagged as POIs (places-of-interest) by the apps. In this paper, we study the POI-based collaboration between apps and venues (e.g., restaurants and cafes). On the one hand, an app charges a venue and tags the venue as a POI, which attracts users to visit the venue and potentially increases the venue's sales. On the other hand, the venue can invest in the app-related infrastructure (e.g., Wi-Fi networks and smartphone chargers), which enhances the users' experience of using the app. However, the existing POI pricing schemes of the apps (e.g., Pokemon Go and Snapchat) cannot incentivize the venue's infrastructure investment, and hence cannot achieve the most effective app-venue collaboration. We model the interactions among an app, a venue, and users by a three-stage Stackelberg game, and design an optimal two-part pricing scheme for the app. This scheme has a charge-with-subsidy structure: the app first charges the venue for becoming a POI, and then subsidizes the venue every time a user interacts with the POI. Compared with the existing pricing schemes, our two-part pricing better incentivizes the venue's investment, attracts more users to interact with the POI, and achieves a much larger app revenue. We analyze the impacts of the app's and venue's characteristics on the app's optimal revenue, and show that the apps with small and large congestion effects should collaborate with opposite types of venues.
UR - http://www.scopus.com/inward/record.url?scp=85056206179&partnerID=8YFLogxK
U2 - 10.1109/INFOCOM.2018.8486019
DO - 10.1109/INFOCOM.2018.8486019
M3 - Conference contribution
AN - SCOPUS:85056206179
T3 - Proceedings - IEEE INFOCOM
SP - 1934
EP - 1942
BT - INFOCOM 2018 - IEEE Conference on Computer Communications
PB - Institute of Electrical and Electronics Engineers Inc.
Y2 - 15 April 2018 through 19 April 2018
ER -