The Industrial Organization Of The Network's Financial Industry And Price Regulation

This article studies the industrial organization theory and price regulation of network finance. It tries to find new theory to sustain the character of networkizatial IO. And through theoretical analysis and inductive reasoning of network economic, it can give theories support and empirical data to development of industry.It deals with character of economic and technology of networkization industry, which influence the IO, and points that it is instrument of production. Then accounts on the character of laws of increasing returns and its special short and long term supply curve, demand curve. Using classical IO theory esp. the SCP frame, though three side of structure, conduct, and perform, it conclude the equilibrium of short and long term and the strategy pricing conduct. Through empirical and comparison analysis of banking mediate business and brokerage industry, we study several method of pricing regulation.The practical significance of this article lays on the issue of informatization of Chinese and world economic emergency some new characters that influence the development of industry. These problems are important to the whole national economic. Studying the method of solving the problem for the regulation of government is an urgent task. This article study the character of cost structure, production, sale and consumption on economic theory and find the solution to profit predicament, which can gives some advice to regulate the network economic.This article firstly defines the network finance, then induce the common character of economic and technology in networkization industry to find the internal relation. These character have direct function to determine the structure and conduct of an industry which conclude economies of scale determined by special cost structure and externality determined by networkization, and they bring the character of positive feedback and nature monopoly. In this part, we use public economic, transaction cost theory and e-commerce theory etc. to analysis the network finance industry. Though three side of structure, conduct and perform, we conclude the nature monopoly model and Bertrand model and how to solve the predication. We find that the equilibrium price of such networkization industry as network finance industry is zero, and this is a predication. It needs the regulation of government.This article has three innovation points as follows:1, Network is means of production and the broad externality and six kinds of character and it's relationNetwork is means of production that can save transaction cost. This is a result of externality of economic, which not only includes the externality between firms but also between industries. We can use the classical theory of Marshal to explain the increasing returns of scales.Networkization industry has six kinds of characters about economic and technology, which include character of production and demand such as economies of scales, positive feedback, nature monopoly, market cover, and demand in production etc. We find the special cost structure and cost curve and short and long term supply and demand curve.2, The study of network finance industry by 10 theory and empirical and comparing analysisUsing SCP frame, we analysis it from three sides which are structure, conduct and perform. It is a complement to the SCP frame that is advance in 10 analysis.We study the industry of banking mediate business and brokerage by system theory of SCP model and the comparison between theory and empirical. This work has some advance.3, Advance of pricing regulation and the coordinate between pricing regulation and entry, exit regulation and investment regulationTo solve the problem of Ramsey pricing model when marginal cost is zero, we find the method of using average cost to substitute the marginal cost. To two-part tariff pricing, we using span pricing discriminate. And for price-cap regulation, we use benchmark pricing to basement price.In policy advising, we conclude that the government regulation should use different methods in different environment. And pricing regulation can be more useful with entry and exit regulation.The perspective of this article is theory of 10. Reference or benchmark is new classical economic theory esp. price theory. Analytical tools are positive analysis which include theories and empirical(case study)?This article also has much shortcoming such as shortage of mathematics data and some econometrics model about the case study, which should be more study work on.