The Application of the Correction Mechanism: Internet + NGO

This chapter is the application of the correction mechanism: Internet + NGO. The supporting NGOs (umbrella organizations and hub NGOs) integrates the information, resources, social capital and other essential elements of the supply and demand sides. Although it does not participate in the supply of specific rural long tail public services, it is committed to providing intelligence, human resources, information and other support for other NGOs. It establishes the communication platform and security mechanism between NGOs and the government, and play the role of network platform for operation mechanism. First, this chapter analyzes the network externality of imbalance correction mechanism. In the view of “Internet + NGO”, the corrective mechanism of imbalance in rural long tail public services has network externalities. The network externality of this mechanism is reflected in that the more dispersed the long tail demand is, the larger the extension scope of the network is. The consumption of the long tail demand is affected by the complementary consumer goods of geography, industry and kinship in the network. Second, the “Internet+” economy has become full of information and information asymmetry will also be weakened. At the same time, this network economy has externality. As mentioned in the previous section, network externality refers to the network effect that market equilibrium fails to fully reflect the cost and benefit. This externality of the network comes from the interaction between its systematic and internal information flow, and the monopoly of network infrastructure. The network platform organization, represented by supporting NGOs (umbrella organizations and hub NGOs), integrates the information, resources, social capital and other essential elements of the supply and demand sides. Although it does not participate in the supply of specific rural long tail public services, it is committed to providing intelligence, human resources, information and other services and support for other NGOs. It could establish a communication platform and security mechanism among different NGOs and between NGOs and the government, playing the role of balance network platform operation mechanism for rural long tail public service. The practical mechanism of “Internet + NGO” for rural long tail public service has dual layers. The first layer is the networking information and resource exchange platform. The second layer is the networking demand and supply matching platform. Finally, this chapter further elaborates the practical operation of the network platform model of the rural long tail public service supply and demand equilibrium through the case study of the Internet platform of JD.com public welfare foundation. The JD.com public welfare foundation is not only an individual of the foundation (NGO), but also a public service Internet platform based on its big data Internet of things technology and the supply chain of JD.com Mall. With the integration of social resources, the JD.com Public Welfare Foundation has carried out social innovation in the fields of rural poverty alleviation, disaster relief, education, environmental protection and social innovation. Through its public fund and material collection platform, the information exchange and supply-demand matching mechanism between rural long tail demand and fragmented rural public service supply can be effectively realized.