The Choice Of Platform Technology Progress And Platform Cooperation Between Industries

The platform pricing,platform game and platform ownership are hot issues in the Two-sided Market Theory of the Industrial Economics,and many literatures research on and analysis them.But there is little research on the impact of technological progress on two-sided platforms and inter-industry platform cooperation at home and abroad.However,in reality,the role of technological progress in two-sided markets has become increasingly prominent,and the phenomenon of inter-industry platform cooperation is also common.Platform technology progress and inter-industry platform cooperation are new and important research fields.Although platform entry time,platform user scale,consumer expectations,cross network externalities and the platform pricing strategy have an important influence on platform competition,seeking leading technologies is still one of the most important issues of the competition between platforms.the cooperation brought about by technology progress also has a serious impact on the equilibrium of platform competition.With the rapid development of Internet and information technology,the third-party payment industry has been developing rapidly.With the sustained and rapid development of China's economy,China's third-party payment market also comes into being and has attracted wide attention from domestic and foreign parties by virtue of its tremendous business opportunities.Various manufacturers have been involved in the third-party payment industry.In recent years,with the application of third party payment companies APP represented by Alipay,QR code payment,acoustic payment,fingerprint payment technology,Alipay and other enterprises with technology progress have opened a new third-party payment industry--mobile payment market,which poses challenge to the traditional monopolistic UnionPay.In response to Alipay and other companies in the competition,UnionPay seeks technical cooperation with platform vendors outside the industry.This phenomenon brings the platform technology progress and inter-industry platform cooperation into our sight.It is worth thinking about whether this cooperation will increase the competitiveness of the UnionPay and expand its profits or not.After the partnership,will UnionPay gradually use the new technology to replace the original POS payment and other old technologies or will it maintain the coexistence of both?These problems have close relationship with China's third-party payment market,seriously affects the development of our payment industry and even influence economic transition in China.At the same time,it provides a practical case for the study of platform technology progress and inter-industry platform cooperation based on Two-sided Market Theory.This paper adopts the methods of case study and theoretical analysis.Based on the case study of platform technology progress and inter-industry platform cooperation in China's third-party payment market,it proposes the real issues and conducts theoretical analysis combined with Two-sided Markets Theory,industrial technology progress with the network effect theory and platform cooperation theory.It learns from previous analysis,chooses Hotelling model for constructing the choice model of platform technology progress and inter-industry platform cooperation,tries to construct the model of competition between old technology platform within the industry and new technology platform and explains cooperation between old technology platform and new technology platform outside the industry when the old platform technology is not available or the impact of this cooperation-whether the old one will fully update or coexist with the new ones.Through the research,this paper finds that technological progress can enhance the core competitiveness of China's industry.The third-party payment enterprises will establish technical advantages,improve their pricing ability,increase the size of the user and ultimately achieve profit growth;disruptive technology innovation decides possibility of monopoly through technology advantages;and platform technology gap and cooperation determines the extent of the coexistence of old and new technology platforms.This paper hopes to enrich the theory of inter-industry platform cooperation and to promote the further development of Two-sided Markets Theory.In addition,this paper also aims to solve the practical problems of China's third-party payment market through research,to provide ideas for the development of related businesses and regulatory decisions and to offer suggestions to the healthy development of China's third-party payment market.