Study Of Shanghai’s Real Estate Industry Organization Based On SCP Model

The real estate of China has been in a stage of rapid development these years. As China’s largest city and economic center, Shanghai’s real estate industry also developedrapidly.As we know, the real estate industry is a basic industry related to people’s livelihood, has played an important role in stimulating economic growth and urbanization development. So the industrial organizational analysis of Shanghai’s real estate is significant, will let us have a better understanding of this industry, provide empirical evidence and theoretical guidance for the government to implement appropriate public policy.In this paper, the SCP of Industrial Organization Theory is used to analyze this industry. SCP model is the market structure-market behavior-market performance analytical framework. This model can do in-depth specific aspects analysis, also has a very logical system, so it was widely used in various industries’ industrial organization analysis.In terms of market structure, this paper mainly from market concentration, product differentiation, entry and exit barriers three aspects to analyze. Market concentration used Lorenz curves and Gini coefficient index. Effectively portray the characteristics of monopolistic competition in Shanghai area.In terms of market behavior, this paper made a detailed analysis ofprice and non-price behavior. In addition, this paper also used game theory tobuild a "model of price competition in the real estate business".In terms of market performance, this paper built a set of evaluation system which including industrial scale, real estate development, sales, corporate and social aspects. Based on this index system, this paper used factor analysis method to evaluate Shanghai’s market performance, got to a conclusion that Shanghai’s comprehensive performance levels had steadily increased, the market was in healthy development. Finally, this paper made the empirical analysis between structure, conduct and performance. Primarily used Berger model, did "conspiracy hypothesis" and "efficiency structure hypothesis" test. Empirical evidence showed that Shanghai didn’tmeet these two hypotheses, Market performance is the result of many factors.Effective way to improve market performance includingreduce market concentration and enhance enterprise own efficiency.This paper argues that the government should reduce barriers to entry, also need to create a fair and competitive market order to promote effective competition in the real estate industry. As real estate enterprises,they should strengthenquality construction, and constantly improve operational efficiency.