An Analysis of Market Structure of Chinese Automobile Industry

Market structure is the market feature which has strategic impact on competition of market and price formation. Indexes measuring a market structure include market concentration,product differentiation,entry and exit barriers,and scale economy etc. In this paper,a preliminary analysis of the market structure of Chinese auto industry is conducted from the above aspects. The analysis indicates that the market structure of Chinese automobile industry is an oligopolistic market structure with moderate degree of concentration,moderate product differentiation and high barriers to entry and exit.