Technical Progress,Entry Barries And Regulation Of Two-sided Platform

Two-sided platform is the product of network economy,with the progress and development of the technique of Internet,intermediate platforms subvert the traditional mode and process of the service,promoting both sides users to achieve more efficient,safer and faster communication and transaction.However,two-sided platforms are usually presented to relatively high entry barriers and exit barriers,there is no lack of regulations for new platforms among them,under the characteristics of highly oligopolistic market structure,determining whether the market is effective must consider platform's scale economy.For example,all sorts of new payment technologies and the pluralism offline scenes make innovative payment methods gradually occupy the market,especially the third-party mobile payment market,showing a clear pattern of duopoly.Based on the theory of bilateral market,we discuss the effects of two-sided platforms' technological progress on entry barriers by building the mathematical model of three kinds of impact mechanisms,then validate that on the third-party Internet payment market.Further,we analyze the nature of the'two clear mechanism' problem and the reasons behind it,point out the problems of third-party payment supervision in China,and then put forward the relevant policy suggestions.While discussing the entry barriers of the new platforms,it is mainly to think about its nature and characteristics.Due to that there are cross-network externality and asymmetric price structure on two-sided platforms,the entry barrier is not limited to scale barrier,cost advantage barrier and policy barrier.We defined the entry barriers of the platform.For the measurement of two-sided platforms' technological progress,it is different from the traditional manufactur-ers,and there are no clear inputs and outputs on platforms.We proposed the method of technical progress index and the corresponding four hypotheses,starting from the effect mechanism of technological progress to entry barriers.Further,we validated these hypotheses on the two third-party Internet payment market from the angles of technological progress as a whole and the index decomposition.The results show that assumptions are established under certain conditions,namely that platforms'technological progress could affect the entry barriers through lowering the advantages of the network scale,improving the replaceable degree and improving the users'migration degree of incumbent platform.At the same time,it is concluded that in two-sided market,the entry barriers have certain accumulations,and the influences of technological progress on entry barriers are obviously negative and have certain hysteresis.In addition,we build the model of the platforms' competition under two kinds of situations of cooperation strategy from the 'two clear mechanism' problem,that is,the payment company or bank firstly pays the settlement of POS to an individual or a company,and then the company or individual will settle it to the merchant.We calculated the conditions that the potential payment platforms could enter and choose to cooperate with the incumbent platforms.At the same time,we compare the third-party payment market access supervisions and think that the main reason of unlicensed payment platforms existing is they are unable to break through the administrative entry barriers.Thus,we finally put forward the corresponding policy recommendations.