Misunderstandings and Explanations of "Excessive Competition": "Incremental" Thought on Anti-Monopoly Legislation in China

Li Yu and Xuliang Wu

Chinese Economy, 2008, vol. 41, issue 4, 37-53

Abstract: This article attempts to analyze the ambiguities of the concept of "excessive competition" from the perspectives of structure, behavior, performance, and policy. In view of the various misunderstandings associated with the concept, the article also cites the automobile, pharmaceutical, coal, and textile industries as examples. Using the basic theory of industrial economics, the authors attempt to provide systematic explanations. "Excessive competition" itself is a paradoxical pseudo-proposition, and on this basis, the authors propose "differential treatment" for administrative monopoly and "incremental" thought on anti-monopoly legislation in policy arguments.

Date: 2008
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