The Study of Market Nature and Agglomeration Form in High-end Industry——A Mathematical Analysis Frame
Sun Zhi-Yu
Abstract
Sun Zhi-Yu
Abstract
This paper combines the Stackleberg monopoly competition model and the Hotelling competitive location-selection model to build mathematical model,and uses it to analyze the tendency of agglomeration in the market of advanced manufacture industry and advanced producer service industry,which discusses the special unbalance market forces between dominance and disadvantage in those industrial terrains.It shows the importance of developing predominant enterprises to promote high-end industry and construct value chain.Meanwhile,it puts forward some useful proposals that the agglomeration of advanced industries and rational FDI introduction should be developed to upgrade our industrial location in global value chain system.
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This paper combines the Stackleberg monopoly competition model and the Hotelling competitive location-selection model to build mathematical model,and uses it to analyze the tendency of agglomeration in the market of advanced manufacture industry and advanced producer service industry,which discusses the special unbalance market forces between dominance and disadvantage in those industrial terrains.It shows the importance of developing predominant enterprises to promote high-end industry and construct value chain.Meanwhile,it puts forward some useful proposals that the agglomeration of advanced industries and rational FDI introduction should be developed to upgrade our industrial location in global value chain system.
Key concepts: Industrial organization, Economies of agglomeration, Dominance (genetics), Upgrade, Disadvantage, Competition (biology), Business, Monopoly