Oligopoly Market Structure, Trade Media and Trade Commodity Pricing:An Analytical Framework and Case Study of Cotton Trade History
China is facing the coexisting dilemma of oligopolistic position and lack of pricing power in international trade. A commodity pricing framework of rule of thirds is put forward by introducing trade media. The commodity pricing relies not only on influence of government policies on trade media market but also on their domestic micro market structure for both exporter and importer. Trade media chooses the profit-maximizing bid-ask price under the game among producers and consumers, while government policies and/or individual protection indirectly influence commodity pricing by influencing market structure of trade media. Based on study of typical duopoly case of Anglo-USA cotton trade, this paper demonstrates and supports the analytical framework by relative price elasticity, shifting coefficient and Granger casualty test method.
The traditional cost analysis based on operating expenditure record doesn't show the relationship among operating expenditure items, and the synthetic characteristic of oil gas production process. Through fuzzy cluster technique, the relationship among cost items of oil gas production process, is revealed set forth the measure to reduce the main operating cost item in oil gas extraction process which is practical to oil gas operation companies.