TITLE:
The Evolution of E-Commerce Payment
AUTHORS:
Chuan Lin
KEYWORDS:
Evolutionary Game, Incomplete Information, E-Commerce Market, Trading Method
JOURNAL NAME:
Technology and Investment,
Vol.8 No.1,
February
20,
2017
ABSTRACT: Firstly, a game model is established under unconstrained market conditions to illustrate the basic evolutionary rule of the market of e-commerce payment method. It is concluded that the establishment of e-commerce payment market is not normative under the unconstrained market conditions, which shows the importance of the introduction of the third party payment for the establishment of standardized e-commerce trading market. In this way, a standardized e-commerce market can be established. This paper analyses the model parameters to illustrate the strategies and methods to achieve good market behavior. And then it improves the model by adding legal supervision and penalties for illegal businesses and other market constraints. And it’s proved that the regulation of market is very important in creating a good market environment and exit block. Finally, this paper gives some useful suggestions on how to form a good standard of market behavior.