Thinking Economics color TV price war.docVIP

 PAGE \* MERGEFORMAT 22 Thinking Economics color TV price war 1999, China’s color TV market, the excitement and confusion, so that people do not truly feel the quiet end of the century. In mid-March, Changhong, Sichuan, Chongqing, took the lead in the market to pull back the curtain a price war, but also in early April to further expand throughout the country, gradually rise to a lot of color TV giants comprehensive war. Price-cutting machine makes the upstream components industry, especially the CPT industry, business conditions worsened, the country decided eight CPT plant to stop production for June 28 a month and protect the price. One trouble is sited. June 26, old color TV enterprises Nanjing Panda to an unprecedented low price - 2580 yuan introduced a special 29-inch color TV, then Konka, Changhong, TCL, Hisense, Prima, also launched a price identical 29-inch color TV. July 14, China Central Television in a set of programs the morning ‘news 30 hours’ and at ‘Evening News’ reported Konka two ultra-flat TV news of 600 yuan price reduction, caused a sensation across the country once again. This has been ‘branded’ as ‘the sixth round of color TV price wars’ of the unexpected events of Chinese color TV industry is regulated by price controls on sensitive nerves exposed. Since March 26, 1996 Changhong, a price war sparked a third since the price war seems to be a synonym for the color TV industry. Some people say that the price policy is color TV enterprises abused; was speaking, color TV prices yet to bottom out. How to correctly view color TV price war, the author of this test from an economic point of view a brief analysis. I. Origin of price war (A) Cost Analysis High-volume products, with the accumulation of production experience, unit cost reduction through learning, a phenomenon called the ‘learning curve’. Has a cost advantage of homogeneity in the product highly competitive market, enjoy absolute advantages of the initiative. This advantage is