An Empirical Study on Relationship between Market Structure and Price Competition Behavior of China’s Current Telecommunication
This paper makes use of the regions’ telecommunication and economy development data of China from 2001 to 2006,choosing the panel data model to study the relationship of the monopoly degree and price level of China’s telecommunication by using the HHI,the aim is to reveal the effect mechanism of the price competition strategy to market structure. The empirical study result shows that the telecommunication comprehensive price level is descending all the time and so is the monopoly degree, however, the telecommunication comprehensive price level has the negative effect to the market structure, this proves that the China’s telecommunication market is no longer a typical oligopoly market, but presents the new character of non-operative price competition.
