China's Book Circulation Industry Research

Market performance of China's book circulation industry is low in recent years, the reasons are as follows, one is institutional factors restrict effective competition, another is market structure is not reasonable, market behavior lacks of standardization. Traditional system caused geographical space of market, players are not marketized, market structure shows that dispersive competition and monopoly coexist. Books inventory rises each year, profit and national reading rate are low, informationization and modernization is low, the market performance can not be improved.The significance of reaserching China's circulation industrial organization is that trying to find whether there is a relationship between performance, structure, and behavior, then reveals internal mechanism and regularity. SCP analytical framework of industrial organization theory can be used to reaserch China's book circulation industrial organization, but, to make it be suitable for China's national conditions, we should put institutional factors into SCP framework, and use "institutional factors-S-C-P" framework to analyse China's book circulation industry.The paper is based on the background of book publication system reform and commodity circulation system reform, discoursing the theory of book circulation industrial organization, analyzing market structure, behavior and performance, finaly researching policies and measures. For China's transition economy, market and institutional factors are inseparable. Institutional factors, the market structure and market conduct affect the market performance in China, so, in order to improve market performance, we should pay attention to system reform, at the same time, adjusting market structure, standardizing market behavior. On this basis, the article puts forward to policy suggestions of books circulation industrial organization.