Analyze economic phenomena with appropriate economic principles.

Practical observation and economic analysis of street food stalls-an economic case

It is very common for vendors to set up stalls outside the dormitory area of colleges and universities. For these small traders, all parties concerned have tried their best to destroy them, but they have been defeated repeatedly, but their business is very prosperous. Why is this happening? How can this phenomenon exist for a long time? Based on the author's actual investigation outside the east gate of Fudan University, this paper analyzes it by using economic game theory.

Description of the phenomenon of street food stalls

In recent years, with the growth of college enrollment and the improvement of college students' overall consumption level, the snack market outside the dormitory area of Fudan University is booming. Whenever night falls, especially during the rush hour from 2/kloc-0 to 23: 00, there will be more than a dozen vendors on both sides of Guoding Road outside the East Gate, and the variety of midnight snacks supplied is very rich, almost bringing together local snacks. The unit price of midnight snack is generally between 1-3 yuan, which is very suitable for students. These food stalls are a heavy blow to "Danyuan Restaurant", "Laoxiang Restaurant" and some supermarkets on both sides of the road. Not only the price advantage brought by tax evasion, but also the time advantage, because students don't have to waste a lot of time waiting in line. Due to the fierce competition in food stalls, Danyuan, "fellow villagers" and supermarkets have a small share in the snack market.

Second, the causes of street food stalls-driven by high profits

Why is this happening? The answer is simple, there are high profits. This is the motivation for vendors to "walk the line" in the snack market. The natural formation and development of snack market is the creation of vendors on the road of getting rich, the establishment and application of free economic rights, and the inevitable result of vendors' profit-seeking behavior, which fully conforms to the development law of market and market economy.

Third, the game analysis of snack market

(A) the game between vendors and "black cats" (police)

(B) the game between students and Dan Yuan

Fourth, solve the problem of street food stalls.

As can be seen from the above economic analysis, the reason why this problem has not been solved for a long time is more complicated. There are several solutions: the first is to curb demand, that is, to adopt the method of collecting consumption tax; The second is that the beneficiary pays the monopoly rent. But practice has proved that these two methods are not feasible. First of all, it is difficult to define the tax payer of students (whether it is the tax bureau or the school), and it will also be opposed by the majority of students; Secondly, paying rent is equivalent to the transfer of monopoly profits, and the transfer ratio is difficult to determine, which will cause endless bargaining between beneficiaries and attackers. Moreover, as can be seen from the above analysis, this approach will only reduce market efficiency. So many people think it is better to maintain the status quo.

Verb (abbreviation of verb) conclusion and meaning

In the process of marketization, there are three different ways to combine government behavior with individual behavior, and there are also three different ways of marketization, and the results are also very different.

First, if the formation and development of the market is not the spontaneous action of economic actors pursuing their own interests, but only the wishful thinking and independent action of government officials, then government behavior has the content of non-government behavior and the nature of anti-market behavior, which will destroy the foundation of market development and cause the reversal and retrogression of the marketization process.

Second, if the formation and development of the market is only the spontaneous behavior of economic actors pursuing their own interests, without the intervention and role of real government actions and the services and arrangements provided by the government, the direction of marketization will not deviate, but the development speed is slow and the missing aspects are hard to make up.

Third, if the development and formation of the market is not only the spontaneous action of economic individuals, but also the effective regulation and strong promotion of the government to deal with natural trends, then not only the direction of marketization will be adhered to, but also its process will be greatly accelerated. The development of Guonian Road vegetable market is proof.

Precautions:

Students usually return to the dormitory from the self-study classroom at this time. Because dinner time is usually from 4: 30 to 6: 00, after three hours of self-study, most people are hungry at this time.

This is very obvious in the cold winter. It is said that the seller makes an omelet in less than 30 seconds.

(3) This assumption is purely for the convenience of analysis. In fact, small traders will not lose all their products if they are caught, and they may escape. There is every reason to believe that small traders have made rational choices. I can't understand that the police have no motivation to catch these "illegal" vendors, such as the small commodity market on the National Year Road.

⑥ The market share of the two companies is relatively small? The prices of supper in old alleys and supermarkets are generally higher, such as meat buns. 0.5 yuan is sold in Danyuan, and 1.5 yuan is sold in Lianhua Supermarket.

⑦ In the summer of 2000, the collective food poisoning incident in Danyuan was an example. Although some rectification has been carried out since the autumn of 2000, the health situation is worrying.

References:

(1) Xie Zhiyu, 1997: Economic Game Theory, Fudan University Press,1997;

(2) Xie Zhiyu, Economic Research (No.8, 1997), economic analysis of counterfeit and shoddy phenomena;

(3) Edgar Figg, 1993: Underground Economics, translated by Shanghai Sanlian Bookstore and Zheng;

(4) Emily Chanley-Wright: Local System and Economic Cost in Africa, selected from Huang Wenhua's translation of Revolution in Development Economics.

(5) Zhang Shuguang, "Government, Farmers and Markets —— Comparison and Analysis of the Cases of Shandong Huimin" Big Market "Eliminating" Small Market "and Zhejiang Yiwu Small Market Becoming Big Market"