| In China’s economic and social transformation, especially in the course from economic system reform to the social system reform, the industry association, as the inevitable outcome of the market economy, plays a more and more important role in market economy.However, due to the industry association maintenance the particular and universal interest of their own industry, the industry association will take all kinds of behaviors to limit the market competition, only if which can give the industry enterprise the excess monopoly profitS.Among the behaviors restricting the competition taken by the industry association, what is the most common and also the biggest harmful is the price cartel of the industry association. Based on China’s special circumstances in the period of the economic transformation, it is of special realistic significance for the safeguard of the market competition order and the protection of the consumers’interests to research the behaviors restricting the competition jointly at present. It is very easy to form the behaviors restricting the competition in China, because the conditions of forming and existing are very easy and easiest to form.For a long time in future, the threat of the pure economic monopoly is not serious for market competition in China market; but the collaboration of restricting competition is always grave for the influence of the competition and the consumer and the study of regulating the collaboration of restricting competition is based on the reality needs of our market. Therefore, the research of restricting competition is of realistic necessity in our country. Taking China’s property insurance as an example, this study mainly use the game theory to analyze deeply the price cartel alliance formed autonomously from the formation motivation, the distribution of the alliance monopoly profit, the choice of the alliance strategy and the mechanism of the alliance maintaining and collapsing. This study will provide with the theory basis and experience support, which is contribute to our insurance supervision department to regulating the price cartel alliance formed by the name of self-discipline in the insurance industry.In the third chapter we’ve made a data analysis of the market influence distribution in China’s current property insurance market from three aspects, including the amount of main body in supply, the distribution of share of the market, and the distribution of the market influence among areas. Through the research, we’ve discovered that the continuous growth of the amount of main body in supply reflects the intensification of the market competition, while the share of the property insurance market still gathers in several large property insurance companies, and the property market mainly gathers in some developed provinces and cities in the east, which shows the unbalanced region development of the property insurance. At present, it is obvious that there is a big wall of high-price-in and high-price-out in China’s property insurance market. And considering the national conditions of China’s insurance development, the administrative intervention is the main cause. Nowadays, different property insurance companies’businesses are tending to be the same. They lack various types of products, and there is little difference between the products. In2009’s main insurance lines’income and the share of market in China’s property insurance, vehicle insurance accounts for72%, which shows that the developments among insurances are extremely unbalanced. This situation may limit the development in depth of the property insurance business. On the other hand, the little difference among products may also cause the cutthroat competition in property insurance market. The demand in China’s property insurance market is also an important feature of property insurance market. The demand will be influenced not only by the development of macro-economy but also the microcosmic disposable income, the price level and many other factors. Considering the fact that China’s property insurance company’s profits mainly come from the underwriting profits and the investment profits, we’ve made a list of the underwriting profits and investment profits of several large property insurance companies in2009and2010, finding that most companies’ profits are negative and they mainly depend on the investment profits to keep active. The instability and high risks of investment profits determines that the current profit model of property insurance business is not scientific. To property insurance companies, grasping and changing the profit model and developing the personalized insurance products is the key to realize a rapid leap.In the fourth chapter, we analyzed emphatically the pattern of market competition and the situation of price alliance of insurance industry in our country. Generally, the competition of insurance industry will be more complicate, including products competition and service competition. Well, vicious competition is an important factor which brings about rate level decline, to make it worse, it also make a contribution to financial loss resulted from the severe shortage of premium adequacy ratio. It is said, that the insurance industry in our country is in transition at the present stage which is characterized by excessive competition, and that the insurance industry is faced with the risk of "inferior money drives out good money" It is testy to avoid vicious price competition if price is regarded as the sole factor related to profit, as a result, the solvency and the normal business of both sides involved are affected. To maintain the profit and avoid fierce competition, insurance companies easily choose price cartels. Price cartels excludes independent price and rejects the function of the law of value, besides, it leads to the disorder and inefficiency of market economy.The fifth chapter is the focus of this study, we firstly introduce the situation of the price war and the common reason lead to a price war before formation of price alliance in the property insurance market and then take advantage of the Bertrand model and the Prisoner’s Dilemma game models to make a in-depth analysis of the causes of the price war in the property insurance market. With the property insurance market having industry associations,we use the communication game theory to analysis the price alliance formation mechanism and use the combination of marginal cost allocation method and cooperative game theory to carry out comparative analysis of the distribution of benefits in the alliance of property and insurance, the results show that, in order to separate from the "Prisoner’s Dilemma" of price war, all insurance companies in property insurance market gain monopoly profits and form price alliance through limiting supply. However, price alliance is hard to maintain because the price reduction of insurance market is a dominance behavior and individual rationality, according to Nash equilibrium of the "Prisoner’s Dilemma". Through the infinitely repeated game, we find that as long as the participants have enough patience, cold strategy is a refining subgame Nash equilibrium of unlimited Prisoner’s Dilemma and prisoner will be out of the one-off game plight. In addition, the Weighted Shapley value method is a fair and effective benefit allocation method in the price alliance in property insurance market.The sixth chapter is the difficulty of the research in the paper. We use Gambling Model to analyze the general cartel’s effect on the stability arising from pricing mechanism and market demands. The results of mathematical analysis prove that general cartel is naturally unstable. Associated with the features of property insurance industry in China, through repeated gambling model method, we discover that, whether the price uniformity of property aim at profit or the share of market equally or give more consideration to profit than the share of market, Small insurance companies have tendency to disobey price uniformity which is in a subordinate position in the market, while large companies have the tendency which mainly aim at the share of market. Strict punishment mechanism will reduce motivation of individual companies disobeying cartel, so as to increase the stability. Nevertheless, cartel is faced with a grand Challenges in the punishment mechanism. The stronger market access barriers is, the more easily cartel keeps stable. The adjustment and management of property industry association will help to enhance the stability of the cartel. However, the asymmetry of information among different enterprises in this industry will reduce the stability of cartel.At last,we provide the insurance regulatory department in our country with theoretical basis and suggestions that restrain the Price Cartel consist of the Insurance Industry Association, according to the econometric analysis and game results which have been referred to in the above content.At first,we need to make the position of government and industry association in the anti price cartel clear. Then, as to the industry association price cartel which has special type and is in specific economic situation,our country should control it strictly according to the different types and situations. Besides,we should consummate our country industry association standard on the foundation of development of China’s market economy status and Anti Monopoly Law. Finally,in the long term,our country should strengthen the supervision and management of price cartel, and we need to build a professional, high-level anti-monopoly law enforcement agency. |
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