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The Causes, Mechanisms and Public Policies of Buying Power in Transformation Economies(National Natural Science Foundation
Academic Achievement
Date:2010-10-23       From:Wu Xuliang, Dongbei University of Finance and Economics


The discussion of Chinese anti-monopoly legislation and enforcement were not able to differentiate  monopoly into buyer and seller monopoly for investigations, "Antitrust" and the supporting regulations and legal interpretations which following it has no clear terms about monopoly. No doubt that such a policy idea has disadvantagesand are incompatible with international practice. Actually, there are many industries in China, such as retail, coal, medicine, petroleum, telecommunications, steel, automobiles, agricultural products, military procurement, which have monopoly problems in varying degrees, and some problems of them are relatively sharp.


The project of National Natural Science Foundation of China “Monopoly power in the transition economies, the causes, mechanisms and public policies research ",which managed and finished by Dr. Wu Xuliang from Dongbei University of Finance and Economics, made a number of policy recommendations about the problems of monopoly for the buyer, the academic achievements can be referenced by Ministry of Commerce (concentration of business operators), National Development and Reform Commission (price fixing), State Administration for Industry (buyer vertical restraints) and other Anti-monopoly law enforcement agencies.


The research considers that antitrust enforcement and formulation of the policy in the situation of concentration of business operators and abuse of dominant market positions should differentiate the monopoly into buyer and seller, pay attention to the great effects of buyer monopoly in concentration of business operators, buyer vertical restraints and other situations. There are five policy recommendations:


Firstly, the analysis of concentration of economic operators like retail should pay attention to the vertical market structure.


Secondly, should pay enough attention to counterbalance monopoly power of the buyer when formulate “Competitive effects of concentration of business operators assessment guide”.


Thirdly, to the buyer behavior of vertical restraints, propose the three-stage analytical framework Motivation®conditions®effect”.


Fourthly, propose the economic framework to access fee issue.


Finally, should encourage the further concentration of food retailing in China.


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