The Welfare Evaluation of Market Competition, Entrepreneurial Employees Entering and Competition Policy
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The Welfare Evaluation of Market Competition, Entrepreneurial Employees Entering and Competition Policy
WU Fu-xiang1,2, CAI Yue1
1.School of Business, Nanjing University, Nanjing 210093, China; 2.Research Center for the Yangtze River Delta’s Socioeconomic Development, Nanjing University, Nanjing 210093, China
Abstract Based on the view of entrepreneurial employees endogenously entering the market and participating in the competition, this paper constructs an internal market entry model which has made welfare evaluation for stopping entrepreneurial employees prior to entering and competition policy effect. The research finds that lower market entry barriers may not be able to promote market competition, even against the social welfare. When there’s the risk of entrepreneurial employees prior to entering, differences between employees’ abilities and controllable degrees will not only influence the employment decision of enterprises, but also affect the level of social welfare. Therefore competition policy must fully consider industry technical property. It is crucial to strengthen the entrepreneurial employees’ integrity and to protect intellectual property for those high-tech manufacturing industry and R&D services. Besides, it also has great significance to create our national brand and fulfill social good faith duty by increasing the default cost of entrepreneurial employees endogenously entering and the tort of punishment.
TUN Fu-Xiang,CA Yue. The Welfare Evaluation of Market Competition, Entrepreneurial Employees Entering and Competition Policy. Economic Survey, 2014, 31(5): 087.
2014, Vol. 31 
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