The Revenue Model of Online Third-Party Payment Based on Game Theory

Abstract

Based on the game theory, including the prisoner's dilemma game, and clever pig game and dynamic game, the revenue model of online third-party payment in China is analyzed in this paper. And it is proposed that the price competition is inevitable during the initial phrase of online payment development. But the online third-party payment companies can make appropriate business strategy to increase the revenue. For example, the XML-based payment platform can be used to strengthen the infrastructure of online third-party payment construction. Also the differentiated payment products and value-added services like EDI application will enhance the competitiveness of online third-party payment companies.