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The Research of Interconnection between Platforms of Two-Sided Markets of Mobile Instant Messaging Industry

Author: ChenJiaZuo
Tutor: HuWenZheng
School: China University of Political Science
Course: Industrial Economics
Keywords: Mobile instant messaging Bilateral market Interoperability Compatibility coefficient
CLC: F626
Type: Master's thesis
Year: 2010
Downloads: 173
Quote: 1
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Abstract

The bilateral market theory is one of the forefront of the field of industrial economics theory, in the bilateral market is one of the core issues of the theory to study the platform vendor interoperability problem. Many famous scholars to apply the theory to study interoperability issues for certain industries. With the wide-ranging and in-depth development of Internet applications, instant communications industry interoperability problems caused by academia and businesses are concerned about. Consumer-grade (QQ) and enterprise level (such as the Enterprise Edition MSN) instant communications industry interoperability, but the leading instant messaging vendors are not involved. China's mobile instant messaging industry in recent years, there has been significant progress. Of Fetion QQ and Tianyi LIVE meant an incomplete interoperability mode is launched and the commercial and participating vendors of mobile instant messaging industry leading enterprise Tencent QQ instant global communications industry are rare 's. So I decided to study this model in order to get the answers to these questions, this state compared with fully interconnected state whether better the suppression or mobile instant communications industry should achieve complete interoperability. First of all, I related to the definition of the bilateral market and its main features, combined with the specific circumstances of mobile instant messaging industry, the following conclusions are positive externalities bilateral market areas: mobile instant messaging industry, on both sides of the bilateral market users are The chat needs consumers and related applications (functional) provider. Then, the author within the framework of bilateral market specific analysis of the key factors affecting the interoperability of mobile instant communications industry, including consumer switching costs, platform pricing, parties held by the behavior of consumers, network externalities, Internet access, etc., so as to determine from network externalities, cross-network externalities, Internet access fees and compatibility coefficient is added to the model. Then, the author of standard Hotelling model in the field of industrial organization of a series of amendments, including more in line with the characteristics of mobile instant communications industry since outside the network parameters and more in line with the reality of the development of the compatibility coefficient. Analysis and use of the modified model-free connectivity, incomplete interoperability and three full interoperability compatibility case platform pricing, platform profits, consumer welfare and social welfare difference resulting analysis. Finally, I got the conclusion in terms of consumer welfare, social welfare, platform vendors to consider the bilateral platform should achieve full interoperability. Incomplete interoperability is mobile instant messaging vendors to complete interoperability development stage. Through the above analysis, I propose the following suggestions: (1) platform vendors should actively adopt a more clear and transparent Internet access fee mechanism to solve the problem of the distribution of benefits; (2) Telecom operators should actively participate in the development of mobile instant messaging system, solve the problem of interface standards; (3) mobile instant messaging vendors should focus on its platform to match the efficiency and competitive differentiation; (4) follow instant messaging vendors should strive to improve their competitiveness and market share to promote interoperability between platforms.

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