The Analysis Of The Trend Of The Production Price In Chinese Steel And Iron Industry

This paper consists of five chapters. With the method of theoretical and empirical research, it discusses the market structure and the price fixing of products from large-scale enterprises after the annexing and reform among companies in steel and iron industry in China. Analyzing the situation in Chinese steel and iron industry, the theory of game were adopted to forecast the price trend of the production in the future. The result shows: (1) After the annexing and reform among companies in steel and iron industry, the market structure might develop into oligopolistic market in the future;(2) On the assumption of the product price from these companies is bounded rational, the prices of production which come from leader companies and follower companies might be equal gradually over time, the so-called"the second-mover advantage"of the follower companies will weaken step by step. By Bertrand model, we further analyze the result. We find that the production may have the risk of sharply fluctuating price, declining profit and the steel and iron industry may not develop healthily and steadily because of the overmuch and the high homogeneous of the production. We suggest that (1)The steel and iron industry should harmonize with the government policy and improve technique by declining cost and diversity production types; (2)As for the homogeneous productions, the overmuch output of the industry should be macro-regulated by the government with all kinds of methods to insure the profit.