Platforms’ Cross-Border Competition and Innovation Are Driven by Data Elements: A Two-Stage Evolutionary Game Analysis

Driven by data, the cross-border expansion of head platforms (HPs) leveraging their data advantages increasingly impacts small and medium-sized platforms (SMPs) and the market innovation ecosystem. This paper constructs a two-stage evolutionary game model to depict the competitive dynamics between H...

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Main Authors: Meixuan Li, Zhong Yao, Menglei Kong
Format: Article
Language:English
Published: MDPI AG 2025-04-01
Series:Journal of Theoretical and Applied Electronic Commerce Research
Subjects:
Online Access:https://www.mdpi.com/0718-1876/20/2/75
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author Meixuan Li
Zhong Yao
Menglei Kong
author_facet Meixuan Li
Zhong Yao
Menglei Kong
author_sort Meixuan Li
collection DOAJ
description Driven by data, the cross-border expansion of head platforms (HPs) leveraging their data advantages increasingly impacts small and medium-sized platforms (SMPs) and the market innovation ecosystem. This paper constructs a two-stage evolutionary game model to depict the competitive dynamics between HPs and SMPs from the perspective of platforms’ behaviors and strategies. This study finds that, in the core market, HPs’ expansion and SMPs’ retention depend on three factors: HPs’ expansion costs and their impact on data resources, SMPs’ operational costs and their impact on data resources, and the gap in the data value between the platforms. In related markets, under a competitive environment, HPs with a greater innovation influence tend to choose cross-border innovation, while resource-limited SMPs may opt for non-innovation. However, if SMPs have a greater innovation influence but face high costs, the game will not converge to a specific equilibrium. In a monopolistic environment, stable strategies are driven by the scale of innovation and the innovation influence of each platform. Except in cases of minor innovation with a strong innovation influence from SMPs or major innovation with a strong influence from HPs, SMPs’ innovation influence and innovation costs are decisive in the game.
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spelling doaj-art-75cd2ce797be4c5a9879d44c4bb3be032025-08-20T02:21:03ZengMDPI AGJournal of Theoretical and Applied Electronic Commerce Research0718-18762025-04-012027510.3390/jtaer20020075Platforms’ Cross-Border Competition and Innovation Are Driven by Data Elements: A Two-Stage Evolutionary Game AnalysisMeixuan Li0Zhong Yao1Menglei Kong2School of Economics and Management, Beihang University, No. 37 Xueyuan Road, Beijing 100191, ChinaSchool of Economics and Management, Beihang University, No. 37 Xueyuan Road, Beijing 100191, ChinaSchool of Economics and Management, Beihang University, No. 37 Xueyuan Road, Beijing 100191, ChinaDriven by data, the cross-border expansion of head platforms (HPs) leveraging their data advantages increasingly impacts small and medium-sized platforms (SMPs) and the market innovation ecosystem. This paper constructs a two-stage evolutionary game model to depict the competitive dynamics between HPs and SMPs from the perspective of platforms’ behaviors and strategies. This study finds that, in the core market, HPs’ expansion and SMPs’ retention depend on three factors: HPs’ expansion costs and their impact on data resources, SMPs’ operational costs and their impact on data resources, and the gap in the data value between the platforms. In related markets, under a competitive environment, HPs with a greater innovation influence tend to choose cross-border innovation, while resource-limited SMPs may opt for non-innovation. However, if SMPs have a greater innovation influence but face high costs, the game will not converge to a specific equilibrium. In a monopolistic environment, stable strategies are driven by the scale of innovation and the innovation influence of each platform. Except in cases of minor innovation with a strong innovation influence from SMPs or major innovation with a strong influence from HPs, SMPs’ innovation influence and innovation costs are decisive in the game.https://www.mdpi.com/0718-1876/20/2/75data elementscross-border competitioncross-border innovationcross-border monopolyevolutionary game
spellingShingle Meixuan Li
Zhong Yao
Menglei Kong
Platforms’ Cross-Border Competition and Innovation Are Driven by Data Elements: A Two-Stage Evolutionary Game Analysis
Journal of Theoretical and Applied Electronic Commerce Research
data elements
cross-border competition
cross-border innovation
cross-border monopoly
evolutionary game
title Platforms’ Cross-Border Competition and Innovation Are Driven by Data Elements: A Two-Stage Evolutionary Game Analysis
title_full Platforms’ Cross-Border Competition and Innovation Are Driven by Data Elements: A Two-Stage Evolutionary Game Analysis
title_fullStr Platforms’ Cross-Border Competition and Innovation Are Driven by Data Elements: A Two-Stage Evolutionary Game Analysis
title_full_unstemmed Platforms’ Cross-Border Competition and Innovation Are Driven by Data Elements: A Two-Stage Evolutionary Game Analysis
title_short Platforms’ Cross-Border Competition and Innovation Are Driven by Data Elements: A Two-Stage Evolutionary Game Analysis
title_sort platforms cross border competition and innovation are driven by data elements a two stage evolutionary game analysis
topic data elements
cross-border competition
cross-border innovation
cross-border monopoly
evolutionary game
url https://www.mdpi.com/0718-1876/20/2/75
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AT zhongyao platformscrossbordercompetitionandinnovationaredrivenbydataelementsatwostageevolutionarygameanalysis
AT mengleikong platformscrossbordercompetitionandinnovationaredrivenbydataelementsatwostageevolutionarygameanalysis