Chinese Real Estate Market Structure And Competitive Behavior Research

After over ten years of development, the real estate industry in China has become a foundational and backbone industry of the national economy. However, with the rapid development of the real estate industry, the unique phenomenon of the coexistence of high housing price and high empty house rate emerged in recent years (Double High Phenomenon), is already not possible to reason this Double High Phenomenon only by the perspectives of cost and supply and demand. Under this background, this article, starting from an objective standpoint and adopting the industrial organization theories, aims at exploring into the market structure of China's real estate industry and the competition behaviors of the real estate enterprises under this structure, analyze the competition interactions within the real estate market starting from the relationship between competition and monopoly and the relationship between the government and the market, and then reveal the true reason behind the coexistence of high housing price and high empty house rate, thus providing theoretical basis and reference for the solution of this paradox.Following the classic SCP paradigm of the industrial organization theory, this article starts from the market structure of regional monopoly of China's real estate industry and focuses on the competition behaviors (including both price competition and non-price competition) of the real estate enterprises under this structure and then introduce the variation of the government to review the real estate market competition that is characterized by the direct participation of the local governments. The core contents of this article can be summarized into two theorems (theorem of dominant non-price competition and theorem of local government's endogenous behavior) and two deductions from them (Deduction I and Deduction II). That is:...