The Study Of The "Winner Take All" Phenomenon In International Economy

"Winner take all" phenomenon is popular in the society nowadays, and this tide has got a great impact on economic pattern. It effects our life and economic development, and attracts the attention of all the walks of life. The "Winner take all" in this thesis means the results of network effects in new economy industry which is a new production-mode based on information technology, droved by essentials of knowledge and takes network as basic tool. This thesis mainly studies a series of results caused by the effects of network in new economy, and lists the influence of these results upon the international economy and trade. The paper first introduce the book of "the winner take all society", particularly discuss the increasing return positive feedback and lock-in theories which are extremely correlated with "winner take all" phenomenon. Then it analyzes the characteristics and causes of "winner take all" phenomenon, besides, it analyzes welfare factor from economic point of view. This thesis points out that the "winner take all" in new economy is very different from the monopoly in traditional economy essentially.As we know, new economy comes from traditional economy, the basic economy rules of traditional economy still exist, but the new phenomenon rules trends and characteristics of new economy are worth emphasizing. Under new economy condition, monopoly is still a universal economy phenomenon. This thesis based on traditional economic theory such as Smith rule and Young rule, combined with positive feedback principle of Arthur's, explains the new kind of monopoly and the trends of new economy.