Market structure of China's network industry

Abstract

Purpose

This paper aims to study network effects and the impacts on market structure in the specific context of China's network industries.

Design/methodology/approach

This paper is organized in the mode of “concept‐model analysis‐empirical examination”. Starting from the concept of “network effect”, it is then extended to the theoretical analysis of market structure and the examination of China's representative network industries.

Findings

The data for China's representative network industries produce mixed findings. Some prove the theoretical estimation quite well, while others do not follow the theoretical conclusion so closely.

Research limitations/implications

The data for China's network industry are relatively limited. The depth of the data is especially inadequate, which prevents more systematic econometrical analysis.

Practical implications

The paper can serve as a reference for private decision makers of network industries and for regulators with antitrust concerns.

Originality/value

This paper may be the first of its kind to study the market structure of China's network industries from the perspective of network effects theory. It could be a good reference for those interested in learning the current status of China's network industries.

Citation

Zhang, L. and Zhang, M. (2008), "Market structure of China's network industry", Journal of Chinese Economic and Foreign Trade Studies, Vol. 1 No. 1, pp. 75-87. https://doi.org/10.1108/17544400810854513