Study Of Civil Aviation Industry In China On The Basis Of SCP Paradigm

Civil aviation is a young and notable industry in China. For more than 20years, under the interaction of various interest groups and the contradictionbetween the administrative power and the market force, reformation fromcontrol to open has been the theme of the development in China civil aviationindustry. From overall perspective, the reformation still lags behind the socialdevelopment, so called as a fortress of administrative monopoly. How tounderstand the market environment for the development of China civilaviation industry and how to follow the industry development direction tocatch the opportunity are main topics in the paper.Starting from industrial organization theory, on the basis of SCPparadigm this paper conducts research and investigation on the interactionamong market structure, market behavior and market performance in Chinacivil aviation industry.Chapter one Theory and Literature Reviews introduces the brief historyof the development in industrial organization theory, and highlights thetraditional theory, SCP paradigm, the development of other industrial organization theories, together with the main content and research in related fields. Chapter two analyzes the market structure of china civil aviation industry based on market development level, concentration ratio, entry and exit barriers, to conclude that the market structure is in the status of high concentration ratio and strong barrier to enter or exit. Chapter three analyzes various market conduct, such as competition in price, amount, product and organization adjustments, in order to interpret the internal reasons for these market behaviors through game theory. Chapter four analyzes market performance based on production output, profit margin, financial indicators in listed companies, as well as technology progress indicators. Chapter five reaches the systematic conclusion on market structure, market behavior and market performance, analyzes the existing problems and inter-linkages, and proposes the recommendations towards the future market prospect.