Abstract:

The market share between China Mobile and China Unicom has stabilized since 2002. It is found that China Mobile has the superiority in the competition, for example, the scissors movement between its revenue and cost indicates that it has a strong profit generating ability and there is enough room for it to reduce the price. The ratio between its price (marginal income) and marginal cost indicates that there is a very distant limit for it to reduce the price. Its demand is obviously flexible with the price, but it does not use the price weapon abundantly. The reason for the stabilization of the market is that China Mobile withdrew from the competition.

Key words:

China Mobile; superiority; scissor movement between the revenue and cost; convergent of the ratio between price and marginal cost; elasticity; restraint