The Analysis On Market Performance Under Different Market Structure And Regulation On The Restrictive Competition

Since China UnionPay established in 2002,the bank card market of China has achieved connectivity between different bank.It makes that possible to use different bank card in different bank,different area and different country.After 15-year development,our country has become the world's most important and most potential bank card consumption country.In our country,China Unionpay is not only market participants but also industrial policy makers and practitioners.Since the establishment of China Unionpay,in order to maintain its profits and consolidate its status in payment and clearing industry,it always happen dispute events and all the focus of the event point to China Unionpay.On the one hand,China Unionpay uses administrative measures to limit VISA,MasterCard and other foreign bank card organization to come into China's bank card market.On the other hand,crack down the development of the emerging of payment like Alipay.Monopoly behavior of China Unionpay has damaged the interest of the market participants,which is bad for the healthy development of China's bank card industry.Therefore,this article proves that the monopoly position of China Unionpay reduces the market performance of China's bank card industry and provides some advice for the better development of China's bank card industry from the perspective of the relationship between China Unionpay and third-party payment mechanism like Alipay.Firstly,this article combed the current research of bilateral market and bank card market,introduce different thesis from different aspects and provide referential basis for the theoretical analysis.Secondly,according to the current bank card market operation mechanism,analyses the operation mechanism and platform vendor characteristics of third-party payment mechanism,analyze theoretical feasibility of using payment link as a platform vendor.Thirdly,based on the present situation and development trend of current payment market,build competition models under monopoly competition market structure and compatibility duopoly competition market structure respectively.Calculate the equilibrium price,consumer surplus,merchants surplus and social welfare of issuing market and single market when realize the profit maximization under two different market structures and according to the consumption preference difference of consumers and businesses,simulate the numerical trend of price levels,consumer surplus,merchants surplus and social welfare under the different level of preference in these two different market structures.Finally,based on the relationship of China Unionpay and the third-party payment mechanism,this paper uses competition model under these two kinds of market structure to analyze the competition relation of China Unionpay and the third-party payment mechanism and the efficiency of payment market.At the same time,this paper analyses the monopoly behavior that China Unionpay shows in the payment market,the low efficiency of payment market it causes and the improvement of current social welfare that the third-party payment can bring.In conclusion,it is necessary to break the China UnionPay's monopoly,introducing competition mechanism,and guide the development of third-party payment become "online unionpay" under the background that the scale of third-party payment has developed rapidly.