The Firm's Exit-Transfer During Readjustment Of The Declining Industry

The development of the economy in one country or one district goes through mainly two methods,one through the model of factor increment and the other through the readjustment of stocking of the factor.Under some circumstance the latter dominates the development of the economy and matters more.The development pattern of the readjustment of factor stocking goes through the working of the structure efficiency in the national economy.However the structure efficiency works through the optimization of the industry structure.Basically speaking,the optimization of the industry structure is the issue of entry and exit of the firm in the industry.The issue of entry must correlate with the "shortage economy" and the issue of exit with the "surplus economy";and the low structure efficiency with the transfer lagging accordingly.Theoretically the different development stage derived from the development of the economy must incur the transfer of the attention to theory from the entry to exit of the firm.The issue of exit is not simply the question of exit and it includes the question of transfer during the readjustment of the industry structure once we view it from the whole development of the industry.Basing on the above mentioned analysis this paper studies the issue of exit-transfer of the firm in the declining industry during the evolution of the industry structure and it studies the exit cause and incentives of the firm in the declining industry using the method of game theory within the frame of the industry organization and basing on the imperfect market.And studies the exit choice of the firm under both complete and incomplete information which include such factors as barriers to exit,collusion and point out that whether the barriers exists or not is not the only factor which can cause the exit lagging and at the same time,the barriers and collusion can truly affect the exit lagging.Next this paper studies the technology adoption of the firm under some circumstances and argues that the adoption cost,the collusion of the firms and the attribute of the firm holding the technology can cause the transfer lagging.Subsequently we study the exit-transfer equilibrium of the firm under some certain circumstance using both the exit model and the technology adoption model,and thus point out the factors which affect the exit-transfer,these factors include such things as the barriers to exit,the collusion of the firms,the adoption cost and the attribute of the new technology and so on.Basing on these analysis we draw the conclusion of the paper,appreciate the different viewpoints concerning the exit-transfer at home,point out their drawback respectively,then we study the current policy abroad,finally we give our own proposal especially mention that whether the market is perfectly competitive or not it should not be regarded as the only cause for helping and the conduct of the firm should not be viewed as the only reason for interference too.