How to charge doctors and price medicines in a two-sided online healthcare platform with network externalities?

Platform business models are upending the value proposition of companies in traditional industries, such as healthcare, through competitively pricing value-added services and products. In this study, we consider a unique, but important, on-demand two-sided service platform: monopolistic online healthcare platform, which not only provides medical to patients by connecting them with doctors, also sells products patients. A crucial operational decision for platform is set up scheme encourage enough doctors participate on platform. We two common schemes study: fixed linear pricing, an empirically-grounded optimisation model that considers medicine decisions together network externalities. Our results show almost always dominates providing higher expected profit. reveal strong interdependence between optimal doctor decision. However, these often made independently different functional units firm, could cause suboptimal financial performance. These indicate importance integrated manner maximising profit product/service