Research on the Influence of Monopoly Market Structure of China's Steel Industry on Price Mechanism Based on Game Theory

Abstract

This article aims to study how the monopoly market structure affects the price mechanism of China's steel industry, which is an important pillar of China's national economy. Every year, the steel industry has made outstanding contributions to China's economy and indicates healthy economic development. Therefore, the research on the steel industry is of great significance. In this paper, based on the theory of game theory, scholars have selected the Abstract production method and comparative analysis method for research and have obtained some results. The most significant result is that the monopoly market structure affects the steel industry's price mechanism, which almost plays a decisive role. Scholars have subdivided large and small enterprises, as well as upstream and downstream enterprises. The results of the two have a similar trend. By analyzing these results, scholars pointed out the problems faced by the steel industry and made policy recommendations for the development of the steel industry in the future, mainly from the perspective of large enterprises, small enterprises and the government. It points out the direction for the future healthy and stable development of the steel industry. It has made a breakthrough in the uncertain development prospects of steel enterprises in China, providing experience and guidance for suppliers, entrepreneurs, and government departments on preparing for the next step.