Internet Finance And Traditional Bank Co-opetition Strategy Analysis Based On Evolutionary Game

Since 2012,the Internet finance industry is emerging.Since 2012,the Internet finance industry is emerging.Internet Finance(ITFIN)is the industry that combines the traditional financial industry with the search engine technology,big data,social networking,cloud computing and other Internet information and communication technology in area of investment financing,payment,new financial model information services.It has the mode of subsection party payment,P2 P financing platforms,crowd funding,and currency network.The rise of the Internet finance has a big impact of the traditional finance financial profit model in the traditional banking market,intermediary business and credit business.The research on development strategy for the Internet finance and traditional banking has an important significance for China's financial market layout.Based on the above background,making Evolutionary Game Theory as the starting point,this paper establishes model about cooperation and competition strategy between Internet finance and traditional banks.Then it analyzes evolutionary stable strategy(ESS)and makes simulation with mat lab.First,the paper reviews the research trends of Internet banking in domestic and on abroad,describes the Internet financial concepts and theoretical basis,summarizes the different modes of Internet financial,and analyzes their respective advantages and disadvantages of traditional banks and Internet financial.Through case,from the perspective of macro and micro this paper illustrates the necessity of cooperation between the Internet finance and traditional banking.By analyzing the factors that can influence cooperative or competition strategy between Internet finance and traditional banking,this paper proposes cooperation and competition Evolutionary Game model,analysis evolutionary stable strategy(ESS),and makes simulation with mat lab.The results show that evolutionary stable strategy(ESS)is affected by factors these are initial proportion,cooperation cost,negative utility of cooperation,cooperation revenue,monopolistic advantage and cost of default under some quantitative relation.Reducing cooperation cost and negative utility of cooperation while increasing cooperation revenue can promote both players tend to adopt a cooperative strategy.In addition,the player that has greater monopolistic advantage is less likely to cooperate;evolutionary stable strategy(ESS)is irrelevant with the ability to learn from each other's knowledge.According to research findings,this papers provide management strategies from the Internet finance,traditional banks and external policy It provides a theoretical basis for the orderly development of the Internet and traditional banking financial and makes our financial markets more efficient service to the real economy.