Game between the third party payment service provider and bank in mobile payment market

Authors

Hui Jiang
Junhai Ma
Zhaosheng Feng, The University of Texas Rio Grande Valley

Document Type

Article

Publication Date

2022

Abstract

With the innovation and integration of the Internet and the financial industry, the third-party payment market has developed greatly and has great potential. This paper discusses the duopoly game between third-party payment service providers and banks, which are the main participants in the mobile payment market. By constructing Nash game model, the conditions of equilibrium point, stability and bifurcation are analyzed. The effects of adjusting parameters and cooperation coefficient on business volume and profit are discussed. The conclusions are as follows: excessive investment will lead to unpredictable fluctuations in the market and fall into chaos; By strengthening cooperation, all participants in the mobile payment industry chain can improve business volume and profits while curbing chaos in the mobile payment market.

Comments

Copyright 2022 The Authors. This is an open access article under the CC BY-NC-ND license

Recommended Citation

Jiang, Hui, Junhai Ma, and Zhaosheng Feng. "Game between the third party payment service provider and bank in mobile payment market." IFAC-PapersOnLine 55.10 (2022): 3058-3063. https://doi.org/10.1016/j.ifacol.2022.10.198

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.

Publication Title

IFAC-PapersOnLine

DOI

10.1016/j.ifacol.2022.10.198