Microeconomics Analysis of Chinese Film and Television Industry based on SCP Paradigm
The huge market demand for cultural products makes the rapid operation of cultural industries, the role of the cultural industries in the development of the national economy has become increasingly significant. The film and television industry is an important component in the contemporary cultural industry. It is a new cultural form and plays a crucial role in the development of Chinese cultural industry. The film and television industry has a vast and integrated industrial chain; it could drive the rapid growth of the whole cultural industry in China. This paper analyzes Chinese film and television industry based on SCP paradigm; it also uses a simultaneous equations model to investigate the relationship between the market structure, conduct and performance. The evidences shows that Chinese film and television market is a competitive market, the market conduct and market performance analysis shows that Chinese film and television industry has already had a certain scale and developed very well. We also find that there is a positive and significant relationship between market share and selling intensity, a firm’s profitability is negatively affect by the selling intensity.
Keywords - Film and Television Industry, SCP Paradigm, Simultaneous Equations Model.