Market structure of China's network industry

Purpose - This paper aims to study network effects and the impacts on market structure in the specific context of China's network industries. Design/methodology/approach - This paper is organized in the mode of “concept‐model analysis‐empirical examination”. Starting from the concept of “network effect”, it is then extended to the theoretical analysis of market structure and the examination of China's representative network industries. Findings - The data for China's representative network industries produce mixed findings. Some prove the theoretical estimation quite well, while others do not follow the theoretical conclusion so closely. Research limitations/implications - The data for China's network industry are relatively limited. The depth of the data is especially inadequate, which prevents more systematic econometrical analysis. Practical implications - The paper can serve as a reference for private decision makers of network industries and for regulators with antitrust concerns. Originality/value - This paper may be the first of its kind to study the market structure of China's network industries from the perspective of network effects theory. It could be a good reference for those interested in learning the current status of China's network industries.