Compete Effectively Evaluation Method Research Of China Telecommunications Industry

Effective competition is an industrial organization form accompanied with large-scale production and vigor competition, as also as the core scopes of the theory of industrial organization. The paper puts the indexes of effective competition in order on the basis of the SCP theory, and constructs a principal component analysis model.Firstly, the paper states the theory and feature of effective competition, which is importance to the development of industry; The theory of SCP and the relationship among structure, conduct and performance are depicted according to Chinese competitive situation, we also explore the relation between effective and structure conduct performance in large scale production and vigor competition. Although a lot of economists research effective competition on the basis of the theory of SCP, the weakness of the former researches is lack of effective competition indexes. The paper constructs the indexes on the basis of the former research and states the feature and advantage of the principal component analysis in the assessment at effective competition.Then based on the fundamental theories of industrial economics and taking account of the industrial features of telecommunications, this article chooses a group of indictors and formulates an indicator system for measuring the effective competition of telecommunications industry. After reducing the original indicator system, this article formulates a comprehensive evaluation framework which is the basis for the research. Taking advantage of the comprehensive evaluation methodology, this article finally formulates a research model for evaluating the effective competition of china telecommunications. By utilizing 22 indicators, this article calculates the effective competition value of china telecommunications industry from the year 2003 to 2007, then examine the results by principal component analysis model, we found the two kinds of analysis is equal. Which shows principal component analysis is the perfect model to judge the effective competition.