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Cooperation or Competition: An Evolutionary Game Study between Commercial Banks and Big Data-Based E-Commerce Financial Institutions in China

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  • Yi Zhao
  • Dong Li
  • Liqiang Pan

Abstract

On the premise of participants’ bounded rationality and information asymmetry, this paper focuses on the cooperation or competition relationship between Chinese e-commerce financial institutions and commercial banks from the perspective of dynamic game. Theoretical mathematical model is built to analyze an evolutionary stable strategy under different conditions. We adopt real-life data set collected in Alibaba’s network credit loan business case and Jingdong’s supply chain financing business case to verify the evolution process of cooperation and competition relationship. The results show that (cooperation, cooperation) is bound to be the evolutionary stable strategy (ESS) and cooperation tends to be increasingly in-depth and expansive for commercial banks as well as e-commerce financial institutions in China. The complementarity of participants’ core competitiveness is explored as the root of cooperation. Finally, strategic suggestions are put forward on cooperation between e-commerce financial institutions and commercial banks.

Suggested Citation

  • Yi Zhao & Dong Li & Liqiang Pan, 2015. "Cooperation or Competition: An Evolutionary Game Study between Commercial Banks and Big Data-Based E-Commerce Financial Institutions in China," Discrete Dynamics in Nature and Society, Hindawi, vol. 2015, pages 1-8, March.
  • Handle: RePEc:hin:jnddns:890972
    DOI: 10.1155/2015/890972
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    Cited by:

    1. Yingying Zhang-Zhang & Sylvia Rohlfer & Jay Rajasekera, 2020. "An Eco-Systematic View of Cross-Sector Fintech: The Case of Alibaba and Tencent," Sustainability, MDPI, vol. 12(21), pages 1-25, October.
    2. Haitham Nobanee & Mehroz Nida Dilshad & Mona Al Dhanhani & Maitha Al Neyadi & Sultan Al Qubaisi & Saeed Al Shamsi, 2021. "Big Data Applications the Banking Sector: A Bibliometric Analysis Approach," SAGE Open, , vol. 11(4), pages 21582440211, December.
    3. Zheng, Yulu & Wu, Xiaoli, 2024. "Fostering fintech innovation: A tripartite evolutionary game analysis of regulatory sandbox experiments," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 1302-1320.
    4. Yingyan Zhao & Yihong Zhou & Wu Deng, 2020. "Innovation Mode and Optimization Strategy of B2C E-Commerce Logistics Distribution under Big Data," Sustainability, MDPI, vol. 12(8), pages 1-13, April.
    5. Faridzah Jamaluddin & Nizaroyani Saibani, 2021. "Systematic Literature Review of Supply Chain Relationship Approaches amongst Business-to-Business Partners," Sustainability, MDPI, vol. 13(21), pages 1-25, October.

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