Table 7: The impact of add-on ratio of commission on merchant optimal pricing.

Condition

Positive Correlation

Negative Correlation

With Trust Advantage

( ΔT>0 )

0<ΔT≤6aLθ−3 L 2 θ p A SC3~N*

p A SC2~A* ; p A SC2~B* ; p A SC3~A* ; p A SC3~B*

ΔT≥6aLθ−3 L 2 θ

p A SC3~sN* ; p A SC3~B*

p A SC2~A* ; p A SC2~B* ; p A SC3~A*

Without Trust Advantage

( ΔT<0 )

−3aLθ+1.5 L 2 θ <ΔT≤0 p A SC3~N*

p A SC2~A* ; p A SC2~B* ; p A SC3~A* ; p A SC3~B*

−1.5 L 2 −6 L 2 θ <ΔT≤ −3aLθ+1.5 L 2 θ

p A SC2~B* ; p A SC3~N*

p A SC2~A* ; p A SC3~A* ; p A SC3~B*

−6aLθ+3 L 2 θ<ΔT≤ −1.5 L 2 −6 L 2 θ p A SC2~B*

p A SC2~A* ; p A SC3~A* ; p A SC3~N* ; p A SC3~B*

ΔT<−6aLθ+3 L 2 θ

p A SC2~A* ; p A SC2~B* ; p A SC3~A*

p A SC3~N* ; p A SC3~B*