Market Structure,Governmental Regulation And Quality Improvement Of Consumer Goods

With the continuous development of economy,the income level of Chinese residents keeps increasing.Meanwhile,the demand for high quality consumer goods also keeps increasing.The phenomenon of consumption upgrading has emerged significantly in Chinese society and have a wide and deep impact on Chinese economy.But in contrast to the rapidly improving demand for the quality of consumer goods,the quality of consumer goods in China has been growing slowly,and the phenomenon of fake and inferior products continues.This paper discusses the determinants of consumer goods quality,the mechanism of how these determinants work,and the effective ways to promote the improvement of the quality of consumer goods from the perspectives of market structure and government regulation.First of all,this paper defines the concepts of market structure,government regulation,consumer goods quality and other research objects by reviewing relevant literatures.After that,this paper establishes the indefinitely repeated game model in competition,oligopoly and monopoly market respectively,and assumes that consumer goods are empirical goods that consumers can only obtain their quality after consumption,reflecting the impact of information asymmetry on quality.The minimum discount rate of the enterprises which is necessary to maintain the high quality equilibrium is used to reflect the difficulty of maintianing the high quality equilibrium in a certain kind of market.By calculating and comparing the minimum discount rate of the three markets,it is found that the oligopoly market is most likely to achieve the high quality equilibrium due to the relatively high equilibrium price and competition.In this paper,the role of government regulation is summarized into three aspects: setting minimum quality standards,supervising the quality of consumer goods,and punishing enterprises violating the standards.By introducing government regulation into the model,it is found that government regulation can exert a positive impact on the quality of consumer goods by increasing the expected cost of producing low-quality products.Then based on the 2004-2017 panel data of 21 consumer goods industry,this paper uses the “demand information inference method” to calculate the quality index of consumer goods indifferent industries.Then the regression model was established to empirically tests the conclusion of theoretical model and quantitatively analyzes the factors influencing the quality of consumer goods by taking quality index as the explained variable and the variables to reflect the market structure,government regulation and other control variabless as the explanatory variable.The results show that high and low market concentration ratio corresponds to low quality of consumer goods,and high entry threshold also corresponds to low quality of consumer goods.Government regulation mainly affects the quality of consumer goods through supervision,but the quantity of quality standard has no significant influence.Finally,based on the conclusions of the above studies,this paper puts forward policy suggestions to effectively improve the quality of consumer goods,including maintaining appropriate market competition,lowering the industry entry threshold,increasing the intensity of supervision to ensure the effective implementation of minimum quality standards,and reducing information asymmetry by means of quality standards and requirements for quality information disclosure.