An Empirical Study on the Monopoly Power of Post and Telecommunication Industry In China The Measure of the Lerner Index

摘要

This paper provides a new perspective to measure Lemer index,mainly on price elasticity of demand.By using the data of post and telecommunication industry in China,we substitute the marginal cost and price and get the relative value of price elasticity of demand,which is better than using price-marginal cost in measuring the monopoly power and in empirical researches.The results show evidence that the post and telecommunication industry in China is an imperfect competition market.Its overall competitive situation experiences from high centralization,partial competition and oligopoly competition since the launch of reform and opening up.The existence of monopoly power can also explain the rigid price problems to some extent.At last,some suggestions on the current surveillance and enactment of competition on monopoly industry in China are put forward.