Research On Social Welfare Of Internet Platform Enterprises Horizontal M&A Based On Externality

With the popularization of mobile Internet,the needs of the public and the support of national policies,the platform economy has developed rapidly in recent years and has involved all aspects of people's lives: travel,food,shopping,video,entertainment,etc.The reason why the platform economy has developed so rapidly is because the business model of the platform economy is quite different from traditional enterprises: the characteristics of bilateral markets,the characteristics of cross-network externalities,and particular pricing methods.On the one hand,platform companies have integrated market resource information,combined with the needs of bilateral users,and reduced the information asymmetry between the two parties through technical means to improve user utility and social welfare.On the other hand,with the rise and development of the platform economy,platform companies have begun to show a trend of horizontal mergers and acquisitions.In recent years,there have been frequent cases of horizontal mergers and acquisitions by platform companies in China,such as Didi Travel M & A Uber China,Hungry M & A Baidu Takeaway,Meituan M & A Public Comment,etc.These cases have aroused public concern: horizontal mergers and acquisitions by platform companies Will there be any cases of increasing pricing and damaging consumer welfare and social welfare? How should antitrust agencies regulate? Therefore,Horizontal M & A of Internet platform companies have become a topic worthy of attention.This article comprehensively uses the methods of mathematical model,numerical simulation and case analysis to study the social welfare situation of platform companies before and after horizontal mergers and acquisitions,and puts forward some suggestions for the current antitrust regulations.Through research,it is found that companies with stronger cross-network externalities have higher prices than those with lower cross-network externalities,and can obtain more profits than companies with lower cross-network externalities with higher market share.The cross-network externality intensity has a positive impact on the consumer's total surplus and social welfare.After horizontal mergers and acquisitions by platform companies,the pricing after horizontal mergers and acquisitions is not necessarily higher than the pre-horizontal merger and acquisition,and the social welfare after horizontal mergers and acquisitions is not necessarily The social welfare lower than before horizontal mergers and acquisitions depends on the strength of the externality of the cross-network.When the cross-network externalities of platform companies are relatively low,the social benefits after horizontal mergers and acquisitions are smaller than those before horizontal mergers and acquisitions.When the cross-network externalities of platform companies are relatively large,the social benefits after horizontal mergers are greater than those before horizontal mergers.When the cross-network external strength of platform companies is moderate and horizontal mergers and acquisitions occur with its larger platform companies,when the cross-network external strength is large enough,the social welfare after horizontal mergers is greater than the social welfare before horizontal mergers,otherwise it is less than the pre-horizontal mergers.Social Welfare.Through the above research,some suggestions are made for antitrust: First,the strength of cross-network externality is used as an antitrust regulatory index,and its impact on platform companies is fully considered.Second,consider the cross-network external strength differences between platform users and the positive feedback effect that reinforce each other's final locking effect,focusing on its impact on the consumer's total surplus.Third,the market share of platform companies is diluted,because there is no unified standard to measure platform companies 'bilateral markets,and the market share of platform companies is relatively high.It is possible to avoid unnecessary loss of transfer costs after horizontal mergers and acquisitions and increase social welfare..Fourth,pay attention to competition among enterprises,prevent malicious competition,and create a good competitive environment.