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China's Telecom Operators Owners Of Monopolistic Competition And Regulatory Research

Posted on:2004-08-26Degree:DoctorType:Dissertation
Country:ChinaCandidate:J ZhengFull Text:PDF
GTID:1116360095462720Subject:Industrial Economics
Abstract/Summary:PDF Full Text Request
The paper systematizes the dominant firm theory and the regulation theory, on which we construct two models of dominant competition and regulation cut for the Chinese telecommunication industry. We advance that the fundamental character of the Chinese telecommunication industry is steady dominant competition, and analyse the inherent mechanism of the Chinese telecommunication industry using models mentioned hereinbefore based on the character. The paper targets that the readers can clear up the lately controversy of which theory can be applied to China, which can not. We find that the Chinese telecommunication industry can be rationalized based on present dominant structure in order to improve the social welfare. We propose four relevant policy suggestions.The paper constructs two Stackelberg dominant models, one is bi-product production-deciding model, the other is one product price-deciding model. We get eleven propositions from the models, and propose four policy suggestions as follows: 1,The regulator should normalize the vertical control behavior of carriers; 2,The regulator should prescribe the regulation price of dominant firm according to the gap of the customer utility of products between the dominant firm and the fringe firms, the larger the gap, the lower the regulation price; 3,The regulator should prescribe the regulation price of dominant firm according to the regulation objective and the condition of customer demand; 4,The regulator can measure social welfare effects of the dominant firm's anti-competition behavior, and punish the offender impartially.
Keywords/Search Tags:Dominant competition, Dominant firm, Fringe firm, Regulation, Stackelberg model, Social welfare
PDF Full Text Request
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