Study On Association Between Price & Quantity Competition Of Retailers And Market Competition

Competition is the essential characteristic of the market economy. Competition has led the market economy to become the most highly efficient economic system by far. With the deepening global economic integration, global market competition is becoming increasingly fierce market competition consider themselves a focus of theoretical research. As the financial crisis and economic crisis, coupled with the imperfect of China's economic structure and industrial structure, Enterprises face increasing pressure to survive and develop. At present, many Chinese enterprises have overcapacity, reduced efficiency of production problems. How to "de-inventory" and correctly handle the relationship between production and distribution, improve and continue to maintain its market share, is the manufacturers must face. Distribution of commodities as a bridge linking production and consumption is the inevitable product of specialization. As the social division of labor and specialization of the rapid development, the vast majority of firms have adopted the selling model through the distribution of middlemen and retailers, highlighting the important role of circulation distribution in the product market competition. Market competition is not only determined by manufacturers, while the number among retailers, marketing mode of competition on the product market competition also played an important role, simply from the production and consumption, to consider the competition in the market has not fully explain the problem. From the flow of business transactions Theory of Productivity and business competitiveness, enterprise competition for additional theory has important theoretical significance, and announced the distribution in the nature of competition in the market, understanding its role in the market economy, from the perspective of circulation address supply and demand imbalance, and by different production, circulation and consumption of policy mix to solve the problem of excess production capacity, on the steady development of China's economy continues to have important practical significance.Based on above, this article will study the existing basis, combing and flowing depth study of competition in the market role, and for the industry chain manufacturers and distributors in the coordination and cooperation between, through several mathematics model inference and analysis, discuss involved number of manufacturers, retailers quantity and market prices, profit margins of equilibrium relationship, find the sectors in the economic cycle and process which play a key role in the distribution organization and channels on market competition implications, especially analyzed how distribution affects companies and the extent.The first chapter introduces the research background, research questions, significance, and designed research framework for the thesis, in order to paving the way for the other chapters later.Chapter two, review of theories and models of competition in the market. Through the review and elaboration of market competition theory, after market concentration in the concentrated expression of the degree of market competition and monopoly measure a detailed analysis, we find the market and market concentration reflects the competition-related production and marketing of a collection , can reflect the number and size of market players determine the market structure of these two important aspects. The purpose of this study combined analysis of the distribution theory and its role in market competition, distribution that has penetrated into all areas of economic life, without distribution, the continued cycle of production and consumption will be terminated. Most manufacturers have adopted through the distribution of intermediaries or retailer sales model, distribution to a large extent determined the development of commodity production and market sales price, the capacity will become the core competitiveness of enterprises. With the deepening of specialization and division of labor, from the transaction point of view of market competition in distribution is more reasonable.The third chapter with traditional market demand function and the pursuit of profit-maximizing economic agents, in certain conditions assumed for the number of constructed models of competition and market competition, competition among distributors of the product market competition effect. Through the mathematical analysis of the model, there is price competition obtained manufacturers, distributors, competition exists between the number of conditions, the profitability of firms is the number of producers and distributors within the industry reduced the number of functions. Meanwhile, the dealer profit margins are manufacturers, distributors, reducing the number of functions. The conclusions derived from the model can be seen, the number of manufacturers and distributors will also affect the profits of the industry chain system, and as their number increases, the industrial chain will improve overall performance.Chapter four, has the thorough analysis based on the third chapter, pointing out that even if the dealer is not the number of lots, while the number of large firms, the market there is competition. Meanwhile, we use the data on China's auto industry empirical conclusions of this model. The sample data were analyze in Granger causality and regression parameter estimates with Eviews6.0, indicating that market concentration, the number of firms and sales and R & D costs are on the margins with Granger causal influence; in the same time, market concentration, sales revenue and R & D there are certain costs and profit margins were positively correlated, while the number of companies with profit margins there is a big negative correlation. The conclusions match our mathematical mode research finding and the actual situation of China's auto market.Chapter five, analyzed the situation of China's current dealer distribution channels, pointed out the importance of the balanced among production, circulation, consumption and efficiency. Market has developed for the production, circulation and consumption constitute the market, only through the continuous flow out of line to avoid sales and inventory backlog, only the production, distribution and consumption to optimize the balance of effects can the market economy, allocation of social resources mechanism for effective operation. To make recommendations, that the establishment of distribution channels, strategic alliances and internal stability of the flow of industrial clusters province profit is the economic mainstay, stable effective method and also a basic method of participation in our market to deepen economic integration.In this thesis, we study, research and learn the basis of previous research results have been, committed to from the distribution of transactions of this new theoretical perspective of market competition issues, but also explains the flow of competition in the market economy the role of competition in the market for the supplement theory gaps in this area. More importantly, from a distribution point of view to solve the imbalance between production and consumption issues, through the production, distribution and consumption of policy mix to solve the problem of excess production capacity in order to consolidate and improve the socialist market economic system in China provides an effective way.