The Impact Of Market Power On P2P Online Loan Platform Base On Two-sided Market Theory

The paper studies the influence of Two-sided market characteristics and platform market power on pricing strategy and matching efficiency of China's P2P online lending industry from two aspects of theoretical mechanism and empirical research.In the analysis of the theoretical mechanism,this paper separately analyses the determinant mechanism of the return on investment and the turnover in the Two-sided market,and puts forward relevant theoretical assumptions.In order to verify the above theoretical hypothesis,this paper chooses the panel data of 109 P2P online lending platform enterprises at 12 months in 2018,uses the two-stage least squares method to verify the Two-sided market characteristics of China's P2P online lending industry,and points out the influencing factors of enterprises' competitive behavior and borrowing matching efficiency.In view of the endogenous problem of variables in the investment return regressing equation,this paper chooses the number of industry borrowers as the instrument variable of the number of borrowers on platform level,and also uses the first-order lag term of market forces to control the endogenous bias.In the empirical study of loan matching efficiency,this paper chooses the number of industry investors as the instrumental variable of the number of platform investors to control the endogenous errors of the core variables.At the same time,in order to verify the cross-externality of the network,this paper also controls variables such as the ratio of supply and demand of the platform,the average loan amount,the average investment amount,the concentration of the loan amount and the concentration of the investment amount,so as to control the unilateral market more reasonably,there may be one-way supply or demand effect.The main conclusions of this paper are as follows:First,the P2P online lending industry in China is in the process of transforming from oligopoly competition market structure to oligopoly monopoly market structure,which belongs to low concentration oligopoly market.Second,China's P2P online lending market has obvious Two-sided market characteristics,which is reflected in the fact that the number of investors and borrowers can still have a significant impact on the effectiveness of the other side even when controlling the supply and demand relationship.(3)From the perspective of price competition behavior of enterprises,higher market power rather than harm the interests of investors but increases the return on investment,however,the increase of market power can't improve the matching efficiency of borrowing.Finally,on the basis of combing the theoretical research and empirical research conclusions,this paper puts forward specific policy recommendations from the realistic background of long-term suppression of China's financial system,in four aspects:financial system reform,credit system construction,industry policy constraints and monopoly regulation.