An Analysis of the Co-Operation between Bank and 3rd-Party Payment Based on Game Theory

The 3^rd-party payment accelerates the development of electronic payment. It provides a successful solution to two base problems that restrict the development of e-commerce for a long time in China, on-line payment and creditability. Using models and theories of game theory, the paper analyses the co-operative relationship between bank and 3^rd-party payment. There are two steps to analyze the issue in the paper. Firstly, the article discusses bank´s rational attitude to 3^rd-party payment: cooperation or non-cooperation. Secondly, using the principle and agents theory, the paper answers the question of how to cooperate. At last, the paper advises bank to establish a cooperative mechanism with 3^rd-party payment.