Humen Bridge

This thesis includes two charts: case description and case analysis.In case description, it shows the history of investment, construction and operation of Humen Bridge Co. and Humen Ferry Co. separately as the study background. Then the author briefs the status that both of them tried to expand the market share in order to increasing the toll revenue through the methods of price adjustment, services facility improvement and debts re-organization after Humen Bridge started its business. She concentrates on the introduction of the cause, the course and the outcome in several rounds of price competition.Following the first charts, the author works at the case analysis in three sections. In the first section, she uses the theories of Strategy Management and Economics to analyze the general economic characteristic and market structure of industrial field that Humen Bridge belongs to. After that, she adopts Game theory to study twice price reductions. From the Game primary factors such as participants, strategy and benefits, she sizes up the efficiency of the price competition, and analyzes the strategical selection system in competition and cooperation between Humen Bridge Co. and Humen Ferry Co. In the third section, firstly, she draws out the linear regression formula with time series data and vehicle flow to estimate future flow under the condition of un-reducing price with the tools of Statistics. Secondly, she assesses the efficiency of price reduction for type II vehicle in Humen Bridge with the price flexibility coefficient of type II vehicle, which is base on the comparison to the price adjustment and the different vehicle flow upon the price flexibility theory in Management Economics.