2011Unpublished venueRequires access

Vertical integration research of oligopoly platform enterprises

Shaojun Cai, Yinghong Wang

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Abstract

Based on two-sided market theory, the paper researches the vertical integration problem of platform enterprises under oligopoly market conditions through the game theory analysis, with main conclusion as follows: enterprises without implementing the vertical integration strategy will divide the market equally, however, enterprises implementing vertical integration strategy has internal stimulation to provide key content products so as to obtain much more market share and profit.

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What this paper is about

Based on two-sided market theory, the paper researches the vertical integration problem of platform enterprises under oligopoly market conditions through the game theory analysis, with main conclusion as follows: enterprises without implementing the vertical integration strategy will divide the market equally, however, enterprises implementing vertical integration strategy has internal stimulation to provide key content products so as to obtain much more market share and profit.

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Available abstract

Based on two-sided market theory, the paper researches the vertical integration problem of platform enterprises under oligopoly market conditions through the game theory analysis, with main conclusion as follows: enterprises without implementing the vertical integration strategy will divide the market equally, however, enterprises implementing vertical integration strategy has internal stimulation to provide key content products so as to obtain much more market share and profit.

Key concepts: Oligopoly, Vertical integration, Industrial organization, Profit (economics), Horizontal integration, Key (lock), Game theory, Business

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