The Price Comptetion Among Enterprises In The Transition Economy

During the period of transition from the planned economy to the market economy, the price competition has become the most frequency strategy, which is put into practice by enterprises actively or passively .And this kind of price competition is characterized with gangs, phases, cycles and so on. The sharp price competition has made some industries and major enterprise's profit drop surprisingly. It's worth mentioning that more and more industries have met the similar cases of price competition that had broken out in the field of color TVs and automobiles. It shows that there must be a certain relation between the transition of economy and the price competition among enterprises. So the author thinks it is important and necessary to study the causes, the formations and the affections of price competition among enterprises, which is based on the economy transformation.In order to make sure of the analysis of price competition that occurs on the condition of economy transformation, the author thinks it necessary to make notice of the following five parts. Firstly, the enterprise inner structure should be brought into the analysis frame for the price competition, by means of expanding the analysis frame of SCP, which is a part of the traditional industry economy. Secondly, the formation of price competition should be generalized and analyzed, and the price competition would be partitioned into the reasonable price competition or unreasonable price competition, which is based on the estimation of the width of price competition and the affection to the social welfare. Further more; the author has also analyzed some disputed behaviors existing in the price competition, such as the binding price, the discrimination for price, the restricting price and so on. Thirdly, on the basis of the generalization of inducements of the price competition, all theinducements can be divided into the benefit ones and the strategy ones. In a word, the profit inducement is the behavior of bringing down the product cost continually, which is caused by the co-operation and promotion for the form of organization and the technical structure and size, which is the reason that enterprises chase the most profit for themselves. The corporation's strategy inducement is mainly incarnated in the variances which are caused by the speculation of the opponents' price. In the condition of economy transformation, the factors, which make the price speculation alternate, include the extent of product concentration, the degree of output's differences, the bars of importing and exporting and the competition status of blending possession system. Fourthly, the author also analyzes the performance of price competition among the relative enterprises. And then draws the conclusion that most of the price competition among enterprises is a justice one on the whole during the period of economy transformation, which is the result of study to the character of the price competition among enterprises and the price competition's affection to consumers and the welfare of corporations and industries. Fifthly, it is the best idea that the government should consummate the price competition among corporations and the best strategy that the government makes measures to have enterprises evade the price competition.In the article, the chapter 1 is the guiding theory and the introduction. It gives an explanation of the study background, issue, sense, trends, thoughts, frameworks, methods, feathers and so on.Chapter 2 is the summarization of relative theories. The aim is to trim the relative theories of price competition among enterprises, and further consolidate the theory basis of putting the price competition among enterprises into practice during the period of economy transformation. In this chapter, basing on the function of competition and the price competition mentioned by Marx in the market economy, the author analyzes the relationship of price competition and non-price competition, and thinks it polemical and unified, and then finds out the affecting factors in the price competition among enterprises, mentioned by Marx, while in a society of liberal economy, price is a major tool, which is used in the field of distributingresources. And then, the author analyzes the meaning of the theory of monopoly price compared with price competition among enterprises, the Harvard School's Model of Structure-Behavior-Performance, the Neo-Industry Organizational Theory, the views of the Post System School.Chapter 3 is the whole framework of this article. Having discussed the character of endogens caused by the transition economy and the price competition among enterprises, the author thinks the course of the economic transition implicates some certain factors, which can be found in the price competition breaking out among enterprises. So the author qualifies the price competition among enterprises of the transition economy. Further more, basing on the analysis of theories, the author develops the traditional model of Structure-Behavior-Performance, and brings the inner factors affecting the behavior of corporation making price into the analysis framework with the model of price speculating variable, And then analyzes the inducements and performances that make the price competition occur among corporations during the period of economy transformation, and further analyze the relative controlling measures which make it perfect the price competition among corporations.In Chapter 4, the author analyzes the form of the enterprise's price competition during the period of economy transformation. According to the affecting degree to the social welfare caused by the different behaviors of price competition and the reasonable degree of the enterprise making price, the author classifies the behavior of price competition into two types, one is the justice price competition, while the other is the injustice one. And these have been analyzed, which are common during the economy transformation, besides studies the social welfare to the behavior of price competition caused by some called injustice price competition, and draw the conclusion that the affection to the social welfare caused by those injustice price competitions is unclear, so it is unreasonable that these price competitions are judged by some simple appearances.The main point of Chapter 5 is to analyze the profit inducements of the price competition among corporations in the period of economy transformation. Afterstudying the relationship of the function of profit, the one of cost and the one of production, the author believes that the alteration, which is caused by the technical structure, the organize structure and the size of the enterprise, is the main inducement that affects the cost and the profit of some corporation.In Chapter 6, the author analyzes the strategy inducements of the price competition among corporations in the period of economy transformation. Basing on the study of the variable model of price speculation, the author finds out the factors, which can affect the price speculation variable of the corporation during the time of economy transformation.The main point of Chapter 7 is to analyze the performance of the price competition among enterprises in the period of economy transformation. First of all, the author analyzes the characters of the corporation's price competition, and studies the affections to consumers, enterprises and industries, which are caused by the corporation's price competition.Chapter 8 is more close to Chapter 7, which is based on the analysis of the performance of the price competition among enterprises. Its aim is to analyze the adjustment and improvement to the corporation's price competition. The excessive price competition will produce some negative affection. The author thinks that the enterprise's price competition should be managed and improved through two sides, that is, they are the Government and enterprises. The government can take steps to improve the reasonable sense of the enterprise's price competition, which are consummating the laws and rules, reforming the state's corporations deeply, improving the function of guilds and so on. And these measures taken by the government must be adapted to the rule of improving the social welfare. On the second hand, the corporation's elusion to the price competition is utilized for the corporation's own strategy.There are quite a few innovations in this article, as follows:The author has extended the Model of Structure-Behavior-Performance, which is from the economic school of the traditional industry. So the corporation's inner structure has been absorbed in the analysis framework of corporation's pricecompetition, yet the author has studied the fluctuation of the corporation's inner structure and the function mechanism of the corporation's price competition in the period of economy transformation.The Variable Model of Price-Speculation has been founded in the article. And the author has analyzed the price speculating variable among enterprises during the period of economy transformation, and has these factors reduced to the strategy inducements of the corporation's price competition.Basing on the study of the forms and inducements of the corporation's price competition, the author has wholly evaluated the forms and performances of the corporation's price competition during the period of economy transformation. And thinks the corporation's price competition during the period of economy transition belongs to the reasonable and justice one on the whole, and the most of unreasonable price competitions are caused by the administration and monopolization.During the course of analyzing, author has also done some more beneficial research in the field of some concrete price behaviors, such as the industry self-discipline price, the bound price and so on.