Researching On Market Power In Tourism In China

With the widespread growth of people’s income, more and more people select tourism as the way of releasing the pressure from work and life. The development of tourism industry has a deep relationship with the personal interests of all travel lovers, which is widespread attended by all circles. At the eighteenth conference of the party, ecological civilization construction was given an important position, the paper emphasizes the importance of ecological civilization construction which can enhance the developmental level in comprehensive economics,and the measure provides powerful political support for the development of tourism in China. The resource in tourism is plentiful in China, there is much natural advantage in developing tourism in China. And with the rapid development of tourism, many bad phenomena have been exposed, such as" the supply and demand in tourism is incosistent, the structure of the products is single, the price of the tickets is too high" and so on, which has strongly influenced the development of the tourism. The thesis researching "the price deviates from marginal cost"(otherwise known as " market power "), is based on the analysis of the present situation of China’s tourism industry. In general, the paper includes three contents.The first part introduces researching background, significance, the research review of market power and market situation in tourism market at home and abroad, train of thought, researching methods, the innovation and insufficiency. The second part is core component of the paper. In this part, elaborating the market situation in tourism in China from three aspects:the supply situation in tourism market, the demand situation in tourism market, the imbalance of supply and demand in tourism market firstly, which is the qualitative analysis of market power in tourism in China. then measuring the market power of China’s tourism industry from empirical point using the derived type of Lerner index, based on the data from1994to2013of China’s tourism industry, and the results show that the tourism industry in China showing significant market power, and then analyzing the reasons of market power’s generation from changes in tourism demand, the irreplaceable of tourism resource, the group of monopoly because of enterprise cooperative competition and institutional factors. The third part is the main conclusion and policy recommendations. Firstly, analyzes the social welfare effect of the market power based on the principles of welfare economics, through the plane rectangular coordinates. And then shows how to develop tourism industry in China healthy and sustainably from tourism participation, tourism products, tourism policy, laws and regulations, the successful experience of foreign tourism.This paper studying market forces in tourism in China, which demonstrating the monopolistic competition industry may also have market power, which expanding the scope of market power on one hand, on the other hand, this paper breaks through the previous research fields on tourism, which is an innovation research on tourism.