Liu, B; Wang, X; Chen, Y and Shen, Y (2013) Market structure of China's construction industry based on the panzar-rosse model. Construction Management and Economics, 31(7), pp. 731-745. ISSN 1466433X
Abstract
The structure-conduct-performance (SCP) paradigm posits that market structure determines market performance, and the generally low productivity of China's construction industry is a reflection of the irrationality of its market structure. Currently, the main approaches for measuring market structure can be classified as either structural approaches or non-structural approaches. Because the statistical data on structural approaches is one-sided, the indicators for the Panzar-Rosse model (a non-structural approach) for the construction industry can be selected by examining the Panzar-Rosse model and comparing the characteristics of the construction industry with those of the banking industry. The Panzar-Rosse model is employed to assess the market structure of 21 listed companies in China's construction industry during the period from 2009 to 2011. The analysis revealed that China's construction industry operates under conditions of monopolistic competition with free-entry equilibrium. The methods and results of the research are expected to contribute to the advancement of theories related to and methods of analysing the market structure of industries other than the banking industry.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | competition; market structure; panzar-rosse model |
| Index terms: | banking, competition, China, productivity, irrationality, reflection, paradigm, construction industry |
| Subjects: | economic analysis, decision-making and reasoning, management, education and knowledge transfer, professional development, Geography, market analysis, industry analysis |
| Topics: | Business Strategy, Geographical Context, Research Practice, Information Management |
| Descriptive scope: | 3 PCT |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here