Industrial Chain Vertical Control and Economic Regulation - Contemporary Chinese Economic Theory Innovation Library

Author: Yu Yihong
Publisher:
Publish Date: 2006-04-01
Features: There are a large number of economic phenomena related to industrial chains in the real economy, with typical examples such as the reform of the four major monopoly industries—telecommunications, electricity, railways, and civil aviation—the pricing between supermarkets and suppliers, the price and non-price control between manufacturers and distributors, and so on, all of which require in-depth analysis using economic theory. The research achievements in the field of vertical relations in modern industrial organization theory form the starting point for the study of industrial chain theory, but they are relatively limited to the relationship between simple upstream and downstream markets. To provide comprehensive answers to various issues at different levels of industrial chains, a relatively independent and systematic industrial chain economic theory is needed. This book is an initial outcome of research in this field. It defines some fundamental concepts of industrial chain theory and proposes its own views on basic issues. Based on a fundamental framework with a logic of "structure-behavior-performance-regulation (SCP-R)," this book systematically organizes and analyzes various vertical control strategies in industrial chains. These strategies mainly include vertical integration, resale price control, exclusive transactions, territorial exclusivity, joint agency, vertical price discrimination, bilateral markets, and vertical contracts. The book also provides a comprehensive and systematic discussion on economic regulation issues related to vertical control in industrial chains.