Analysis on the Evolution Law and Policy Intervention of Market Competition Pattern under the Background of Digital Economy

Abstract

Digital economy has become the core driving force of global economic growth, and its rapid iterative digital technology and rising platform economy have profoundly changed the traditional market competition pattern. Based on the three-dimensional analysis framework of "technology-market-policy," this paper discusses the evolution law of market competition patterns and the effectiveness of policy intervention in the background of the digital economy. It is found that the competition in the digital economy market shows obvious path dependence characteristics, and the head enterprises continue to strengthen their monopoly position by virtue of their first-mover advantage. The acceleration of technical iteration and network effect has significantly promoted the increase of market concentration. However, policy intervention can effectively reduce the excessive concentration of the market and encourage enterprises to innovate through the "dynamic equilibrium model". Through empirical analysis such as systematic GMM model and synthetic control method, this paper verifies the balance effect of the critical ratio of policy intensity and data density on innovation incentives and constraints, and puts forward some policy suggestions, such as implementing dynamic balance antitrust policy, strengthening data governance and privacy protection, and optimizing the way and timing of policy intervention, in order to provide theoretical support and policy reference for the healthy development of digital economy.