| Market power is one of the key factors that determine the behavior of enterprises and affect market performance,and it is also a big concern of economic research and antitrust regulation.The market power discussed in traditional economics refers to the power of sellers(the enterprise in general)relative to the buyer(consumers in general),so it is actually the seller's market power.In the past 30 years,another form of market power has aroused the concern of academia and antitrust department,which is the power of the downstream buyer(mostly enterprises)relative to the upstream sellers.It is called buyer power by academics.The most prominent manifestation of buyer power is the power of large retailers in the retail industry comparing with upstream manufacturers.In addition,in medicine,coal-electricity and other industries,buyer power is also obvious.What is the essence of buyer power?What impact will buyer power have on corporate behavior and market performance?What are the mechanisms behind these effects?Should the Antimonopoly Department regulate it?If so,how?These are the theoretical and practical issues worthy of careful discussion as well as the focus of the academic circle at present.The starting point of the analysis is the real industrial environment where buyer power exists.This paper probes into the relationship between buyer power and market environment with a focus on horizontal market competition environment and vertical trading environment,investigating the economic effect of buyer power to reveal the mechanism of buyer power.Furthermore,the paper begins with the market environment,and focuses on economic effects on buyer power and its mechanism in order to construct the general theory of buyer power.Based on these studies,this paper explores into the antitrust regulation of buyer power,trying to build the general regulation path of buyer power and give specific regulation strategy of buyer power in typical industries.In addition,this paper also discusses the application of buyer power in practice of enterprise's strategy.The research of this paper is divided into 5 sections and 12 chapters.The first section is the research problem and research framework,including the first,second and third chapters of the thesis.This section puts forward the research problem of this paper by combining the present situation of China's industrial environment and the theory of buyer power.Then it builds theoretical system of the research of buyer power and illustrates logical framework.The second section is the research of price effect of buyer power under the condition of downstream market competition,including chapters 4,5 and 6.Under the background of the downstream retail market competition,this section takes the vertical market structure consisting of upstream manufacturers and downstream retailers as the example,examines the influence of buyer power's change on trading price and market price,that is,the buyer power's price effect.Based on our country's real industry environment,this paper refines three kinds of vertical market environment,namely non-cooperative trading model between the upstream and downstream,cooperative trading model and pricing contention model.Then it integrates the three vertical market environment and horizontal competition environment and respectively examines the price effect of buyer power so as to capture the influence of different vertical market environment on buyer power's influence.The third section studies price effect of buyer power under the condition of upstream market competition,including chapter 7 and 8.The study of this section is complementary with the study of second section,they They jointly complete the research purpose of the construction of theory of price effect of buyer power under the general market competition conditions.In addition,the study of this section can help to understand the effect of buyer power in Chinese local manufacturing market.Specifically,based on the full description of the competitive characteristics of the local manufacturing industry,this section establishes a market model of differentiated competition between foreign manufacturers and local manufacturers,and then explores the impact of buyer power on wholesale price and retail prices in the manufacturing industry when manufacturers and retailers adopt different transaction patterns.The fourth section is the research on the innovation effect of buyer power,that is,the influence of the change of buyer power on the innovation incentive of the upstream manufacturer,including chapter 9 and 10.The section examines the influence of buyer power on manufacturer innovation under downstream retailer competition and upstream manufacturer competition respectively in order to reveal the mechanism of buyer power on manufacturers' innovation under different market environments and find out how the change of competition environment will influence the buyer power's innovation effect.The fifth section is the theory construction and application of buyer power,including chapter 11 and 12.This section summarizes and refines the theoretical research,forms the general theory of buyer power and digs into the application value of the theory.Specifically,embarking from the basic market characteristics of the environment,this part takes buyer power's price effect and innovation effect as the core,focusing on mechanism underpinning the effect,constructing the general theory of buyer power.On this basis,the paper discusses the anti-monopoly regulation policy of buyer power,mainly including the construction of the general regulatory path of buyer power and the formulation regulation strategy in specific industries.In addition,this section also briefs the application of buyer power theory in strategic decision of enterprises.Based on the above research,this dissertation draws four main conclusions as following:(1)Relationship between buyer power and market environmentThere is a two-way relationship between buyer power and market competition.On the one hand,the upstream market competition and the downstream market competition will affect the existence and size of buyer power,and also affect the effect of buyer forces;on the other hand,the exercise of buyer power will also change the upstream market competition structure and the downstream market structure in some extent.(2)Price effect of buyer powerPrice effect of buyer power can be divided into two kinds:horizontal and vertical.Horizontal price effect means that buyer power will change the retailer's horizontal price decision mode,and then the retail price also changes.Horizontal price effect of buyer power is essentially the change of seller power which causes increase of retail price.Vertical price effect refers to how the change of buyer power will influence trading price between upstream and downstream.Vertical price effect is related to the vertical trading environment:under non-cooperative trading model,vertical price effect of buyer power will reduce the transaction price faced by the buyer with power,and the influence on other retailers'transaction price is uncertain;under cooperative trading model,buyer power will not affect the transaction price;under contention model,vertical price effect of buyer power will reduce price faced by the buyer with power but has no influence on other retailers' transaction price.Retail prices are influenced by horizontal and vertical price effects,horizontal price effect tends to increase retail price,and vertical price effect has uncertain influence on retail price in general but usually vertical price effect lowers retail price.From a comprehensive perspective,increase in buyer power will often reduce retail price and improve consumer welfare in the short term.(3)Innovation effect of buyer powerIn terms of innovation effect of buyer power,the retailer's increased power over a manufacturer will reduce the manufacturer's innovative input.There are two different ways in which this occurs:on the one hand,the increase of buyer power reduces the profit of the manufacturer,thus harming its profit base for innovation;on the other hand,increase of buyer power reduces the marginal profit of the manufacturer's products reducing marginal revenue of innovation and so restraining the manufacturer's innovation input.Moreover,in the context of competition from upstream manufacturers,increased influence of the retailer in relation to a particular manufacturer will also affect the innovative input of competitive manufacturers.According to this conclusion,the enhancement of buyer power by retailers will not only restrain innovation of local manufacturers,but also promotes innovation of foreign manufacturers,thus reducing innovative ability of local manufacturers.In addition,the larger extent of manufacturers' competition degree will weaken the negative effect and strengthen the positive effect of buyer power on innovation.(4)Regulation and application of buyer powerThe research shows that enhancement of buyer power has two contrasting effects.On one hand,buyer power can be beneficial to social welfare because it reduces the market price;on the other hand,buyer power can restrain innovation.Therefore,the two opposing effects should be considered comprehensively in the regulation of buyer power.Specifically,the Antimonopoly Department should analyze the welfare effect of buyer power from three aspects,including downstream market competition environment,upstream market competition environment and upstream market innovation features and then make a scientific and reasonable regulation strategy.Specifically,based on the criteria of market competition and industrial innovation,this paper constructs a general regulatory path for buyer power that can be referenced by the anti-monopoly department.Combined with the characteristics of China's market environment,this paper also puts forward some suggestions on the regulation of buyer power in specific industries:for retail industry,this paper believes that under the current situation,retail industry has low market concentration,so buyer power does not need too much regulation.For pharmaceutical industry,the paper thinks that the government and related medical institutions can strengthen their own buyer power through centralized procurement and reduce purchasing cost.But they also need to pay attention to the negative influence that buyer power may have on the pharmaceutical enterprise' innovation.The best measure is to adopt different purchasing models according to the innovative characteristics of medicine.This paper assumes that strengthening the vertical cooperation of coal power enterprises and improving the monitoring and publishing mechanism of coal demand and price can help coordinate the coal power negotiation and promote the benign development of the industry. |
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