The Study On Market Structure And Optimization Mode Of China's Iron And Steel Industry

Steel is very important in our country. For the last the twenty years, great improvements have been made in the iron and steel industry. The productions have been the first in the world. But there are some weaknesses in our steel industry at the same time, such as the over-competition and excessive production. Then we should study the market structure in the iron and steel industry, and provide several measures to improve its performance.Different from the traditional microeconomic theory, the iron and steel enterprises almost provide several heterogeneous products, instead of just homogeneous products, where there are some differences in trails or characters. However, they could meet consumers'utility by substituting each other. Basing on the reality, we analysis the enterprises'product space according to the theory of production differentiation, in contrast with the existed papers.We focus on the market structure of each sub production and the relationships among them during the process of analyzing the market structure of iron and steel industry. The effect of sub production on market performance is analyzed, based on the assumption that all the iron and steel enterprises are profit-maximum, and find which school could explain the iron and steel industry more powerful, Harvard School or Chicago School.Finally, we will find the potential problems in China's iron and steel industry from the prospect of Pareto Optimal Theory in welfare economic, and suggest useful methods to improve the market structure.