Research On Cross-network Externality In China Stock Exchange

In recent years, along with the research on the development of theory of industrial organization, the two-sided markets problems caused the attention of scholars, which opened a new vision for research on the theory of industrial organization. And now, research on financial markets from the perspective of two-sided markets is rare, so this paper attempts to research China’s stock exchanges on two-sided markets vision, make a detailed analysis of the cross-network externality from the perspective of a platform, as an exploration to the research filed.Based on the existing two-sided markets theory, firstly, this article uses literature retrieval method, around the definition dispute of two-sided markets, to tease out the two main reference theories:multiple products pricing theory and network-externality theory. From comparing the reference and shortcoming in using of the two theories for two-sided markets, this paper draws a basic point:compare with the non-neutral pricing, cross-network externality is more essential in two-sided markets. At the end of the literature review, this paper introduces the latest achievements of the domestic and international theoretical and empirical research on cross network externality. Secondly, through empirical analysis, this paper uses the data of china securities registration and settlement statistical yearbook and financial statistics yearbook, getting two main conclusions:for the Shanghai stock exchange, the platform has a one-way cross network externality, the listing Corporation is the dominant factor, the network strength coefficient is1.26, and the actual guidance is to increase each1for the listing Corporations, the investors increase12,600; for the Shenzhen stock exchange, the platform has a one-way cross network externality, the investor is the dominant factor, the network strength coefficient is0.77, and the actual guidance is to increase each10,000for the investors, the listing Corporation increase0.77.Finally, through the comparative analysis, this paper believes that the main reasons of the differences in the two exchanges in conclusion is the difference in function orientation, and according to the conclusions of empirical research, this paper provides some suggestions for operations, pricing strategy and competitive strategy for china stock exchange.The innovations of this paper are:firstly, to compares non-neutral pricing and cross-network externality, and demonstrate the cross-network externality is more essential characteristics; secondly, to analyses the china the stock exchange on the perspective of platform enterprise, provide a new idea for similar research on other financial market areas; thirdly, through Grainger Granger causality test analysis, get the specific form of cross-network externality of Shanghai stock exchange and Shenzhen stock exchange, and make some suggestions for operations from the perspective of platform.