Bilateral Market Platform Game Of Different Services

The two-sided markets theory developed in the21st century.This theory researches a certain market structure involved a middle platform and two cross subsidizing agents. The two-sided markets theory has successfully explained the mechanism of freeconomics in the creadit card market,in the real estate market,and in the internet market.And it has been one of the most interesting sectors of Industrial Organization. Platform competition is an important content of the two-sided markets theory. Existing literature focus on the platform competition involving the same business.Research on platform competition involving different kinds of business is seldom.And the platforms running different kind of business competition counts in real. It is important to solve these problems:what is the mechanism of platform competition involving different kinds of business? Which parameters play an important role on this competition?In this article we have developed a differential game model based on logistic growth curve to study platforms competition involving different kinds of business in two-sided markets. Then we use Matlab to simulate mumerical solutions to find out key parameters engaged with the long term balance. We have employed case study to test the model and have drawn two conclusions:(1) Platforms running different kinds of business competition counts in real. Attention substitution plays an important role in this competition. These models are called attention substitution models and can be divided into two kinds:new platform substitution and big platform invasion.(2)We have found three key parameters that have been connected with the long term balance, potential scale,cross network externality,and the timing of entry.These models and exsiting two-sided market theories set up a new perspective of attention economy. In most cases attention economy is based on two-sided market structure.And the attention could be converted into cash in two-sided markets. The possibilities and key parameters concerned about the different kinds of attention competition have been illustrated in this article. We have brought two new concepts base on these parameters:attention economy of scale, attention economy of scope. We have developed a way to calculate the attention scale and the market share of attention.In further,we have studied evidence from the internet industry and found that winner has taken all in this area.The enterprise has been ranked first earn most profit. In order to keeping the attention market shares companies in the internet industry they should consider three factors:(1)selecting business with big potential scale to enter (2)reaching maturity stage as soon as possible (3)achieving cash flow balance by two-sided markets.