A Game Theory Analysis in Trade Security of Iron Ore

摘要

The structure of bilateral oligopoly in iron ore international trade makes the monopoly profit, and the means to divide the monopoly profit is the pricing of iron ore. From the game analysis on pricing in iron ore international trade , this article find that the pricing right can bring the price-maker first-mover advantage, thus, both in the buyers and sellers, oligarchs have incentive to obtain the pricing right, and the relatively intensity of the competition determines their bargaining strength. In the pricing right competition of iron ore international trade, there is effect of "advantage of the weak", but the effect is limited. So, for releasing the pressure from the durative increase of iron ore price, the steel enterprises of China should take both the pricing right competition and increase of bargaining strength into account, and to design strategy on the aim of changing the relatively intensity of pricing right competition between buyer and seller.