Bi-Level Programming Model For The Research Of The Profit Sharing Of Mobile Application Store

There are more than150application stores in currently worldwide. Application stores have seriously homogeneity, and most of them are in the difficultly earnings situation for lack of effectively business model. For this situation, firstly this article analyze the profit model of application stores, respectively build models by Bi-level programming theory for revenue sharing business model of download and advertising. The target of the high level programming in two models is the maximum of the profit-sharing of application stores, the target of the low level programming in two models is the maximum of the profit-sharing of application developers. Meanwhile, in order to realistically simulate real demand, this article respectively adopts linear demand function and nonlinear demand function, and solutes models with Kuhn-Tucker conditions, then verify the feasibility of the model by numerical example, analyze sharing ratio, price of application, ad impressions prices, and parameters in demand function to the result. Finally, put the commonly used sharing ratio into the model, compare its result with the result of the studies in this article, verify the validity of the model, and effectively improve the rationality of profit-sharing between application stores and developers.Bi-level programming is widely used, but it has not been used in the study of profit sharing of application stores. This study fill this gap, and give full play to the advantage of the Bi-level programming, effectively improve the rationality of profit-sharing between application stores and developers, has a certain degree of originality and effectiveness.