Study On Pricing And Economic Effect Of Two-sided Market Platform Cooperation Based On Synergy Effects

With the wide application of e-commerce and the development of Internet information technology, the two-sided market is developing constantly. The competition among platforms is becoming more and more fiercer, so the two-sided market platforms have to cooperate to deal with competition. There is horizontal cooperation as well as vertical cooperation platform between enterprises. The cooperation exists not only technology sharing, but also the alternative products and competition, what the most important is to have the synergistic effect of 1+1>2.The two-sided market has the characteristics of cross network externality and asymmetric price, so that the pricing rules and the efficiency of the two markets are different from the traditional unilateral market..In order to know the pricing rule and efficiency of platform cooperation, the Salop reference model of four oligarchs (multi oligarchic circle model) is constructed in this paper. Each oligarch respectively connects the buyer and the seller, and competes for prizes in the ring market. This paper first discusses the equilibrium price, user scale, corporate profits, consumer surplus and social welfare of two platforms in general when do not participate in the cooperation. Through deduction and calculation of the model, we know that in the absence of marginal cost and fixed cost,under the condition of noncooperation equilibrium price, platform user scale, corporate profits are only have relationship with cross-network externality between the buyer and the seller. What’s more, the total consumer surplus additionally related cross-network externality change and intrinsic benefit change.Considering the platform cooperation will increase user intrinsic benefit and create the synergistic effect, we join the two variables of cross-network externality change and intrinsic benefit change in the model when platform choose cooperation. On the basis of baseline model, we assume that any two platforms can cooperation. Through discussing the cooperation equilibrium price, user scale, corporate profits, consumer surplus and social welfare, we know that reservation utility change and cross network externalities changes also impact platform pricing and efficiency. What’s more, after cooperation equilibrium prices and profits are higher than before. While platform horizontal cooperation would decline consumer surplus. But if we can increase the platform differences, horizontal cooperation platform between enterprises does not necessarily affect social welfare.Finally, combined with one of most influential horizontal cooperation case among the online video industry---cooperation of iQIYI and PPS video. This paper first analysis its market situation, advantages and disadvantages before cooperation, and then verify the platform cooperation can create synergy effects so that do raise user scale and enterprise income. According to the research conclusion, we suggest that platforms intensify horizontal cooperation and take the competitive strategy of differentiation. For the governor, the management of platform cooperation should depend on the circumstances, and can’t interfere in the general.