Coal Power Longitudinal Study Based On Market Forces

The vertical relationship of inter-industries, getting more and more focus in reality, is a core problem in the theory of Industry Organization. While it exists the circumstances that the theoretical study has deviated the real demand in reality, especially the conventional analytic framework confronts the dilemma that not only in the theory basis but also in practice. Aiming at the reality that the temporary researches on relationship between input and output are in defect of confusing in logic, obscurity in operation and departure in mainstream, the paper proposes the framework----from market power to vertical restraints, and then to competition policy-----which takes the SCP framework as its basis and incorporates the relative theories and methods in NEIO. What's more, it is easy to be put into practice.Among lots of different industrial chains, the industrial chain of coal-electricity draws the most attention as its conflicts are too intensely and its influence to national economy and people's lives are too substantial. This article use the framework mentioned above to take insight of it. In the aspect of marker power, we measure the relative market power between coal and electricity industry with the method of NEIO and Econometrics by sampling the corporations from listed companies. The conclusion of demonstration is coal industry got and applied the relative market power. In the aspect of analyzing the vertical restraints, the essay constructs the models and found out two staple evidences with the method of game. One is that it is imperative to take account of transportation which is the key to the phenomenon that the coal industry which has competitive market structure performs the market power. The other is vertical integration is a good way for electricity industry to take the priority. Besides, that way can help the integration gain profit more. At last, it summits the competitive policies including bidding accesses to networks and making transportation competitive. The paper underlines the meaning of the policies by making comparison among many different policies which proposed by researcher or had been put into practice for a long time.