Monopoly Characteristics and Policy Analysis of China's Online Retail Market

Abstract

The network retail industry has been in a highly centralized pattern. According to the relevant concepts in the traditional industrial organization theory, this highly concentrated market needs regulation. Behind the rapid development of industry is the hidden worry that is constantly exposed. In 2011, Taobao announced a substantial increase in annual fees and software service fees, which caused conflicts with small and medium sellers. In the price war in Jingdong, it may have been sold at a price lower than the cost. The traditional industrial organization theory usually thinks that the monopoly market structure is not good. Because of its pricing model based on its own marginal cost and marginal income, it will cause welfare losses to consumers, resulting in low market efficiency and unnecessary losses. This paper first expounds the basic connotation and judgment criteria of monopoly, analyzes the monopoly and characteristics of online retail industry in the "Internet +" era, and finally puts forward some governance strategies for the monopoly problems existing in the current online retail industry.