Study On Market Performance Of Highway Industry Based On SCP Paradigm

With the deepening of market mechanism, our country’s highway has formed a relatively independent industrial system. At present, China’s highway industry is in a transition phase. In the transition process, a series of deep-rooted problems has been gradually revealed: industrial monopoly and diseconomies of scale, lower operating efficiency of the body, inefficiency of resource allocation and so on. Based on this background, drawing on SCP paradigm, this paper attempted to do research on highway industry market structure, enterprise behavior, market performance and their interrelation, then put forward suggestions to improve the performance of the highway industry.Firstly, highway industry’s market structure was analyzed from market concentration and entry barriers two aspects, and the results showed that the highway industry has extreme oligopoly market structure. Secondly, enterprise behavior was explored and the view that there is not only market behavior but also non-market behavior which affects the performance level of the highway industry was pointed out. Then, the DEA method and model were used to evaluate highway industry market performance. It turned out that the performance level of the entire industry was not high.On this basis, the study of interrelation and impact mechanism among highway industry market structure, enterprise behavior, market performance found that: For loan-repayment enterprise, the interrelation among the above three is obvious one-way interaction, that is to say, the market structure affect behavior and thus affect market performance. For commercial enterprise, in addition to the above one-way relationship, the market performance would adversely affect enterprise behavior, but does not affect the market structure. Due to the percent of repayment type highway is larger currently, so from the perspective of the whole highway industry, the current interrelation among market structure, enterprise behavior and market performance is more in line with single direction recursive relationship as described by the SCP paradigm. This is mainly because currently the market structure of China’s highway industry belongs to exogenous variables, whose changes are mainly determined by the executive power, basically not affected by enterprise behavior and market performance.Based on the above, suggestions to improve the performance and optimize the industrial organization of highway industry were proposed from market structure and enterprise behavior two aspects.