practical observation and economic analysis of street food stalls-a case study of economics

it has long been a very common phenomenon for vendors to set up stalls outside the dormitory area of colleges and universities. For these small traders, all parties concerned tried their best to eliminate them, but they were defeated repeatedly, but they were "wildfire never quite consumes them, they are tall once more in the spring wind" and their business was very prosperous. Why is this happening? How can this phenomenon exist for a long time? This paper analyzes this by the author's actual investigation outside the East Gate of Fudan University and using economic game theory.

1. Description of the phenomenon of street food stalls

In recent years, with the increase of college enrollment and the improvement of college students' overall consumption level, the midnight snack market outside the dormitory area of Fudan University is booming. Whenever night falls, especially in the rush hour between 21: 11 and 23: 11, there will be more than a dozen small vendors setting up stalls on both sides of Guoding Road outside the East Gate, and the variety of midnight snacks supplied is very rich, which brings together almost all the local flavor snacks. The unit price of midnight snack is generally between 1 and 3 yuan, which is very suitable for students. These food stalls are a heavy blow to the "Danyuan Restaurant", "Old Lane Cuisine" and some supermarkets on both sides of the road. It is not only the price advantage caused 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 of food stalls, Danyuan, "Laoxiang" and supermarkets have a small share in the midnight snack market.

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

Why is this phenomenon? The answer is simple, there are high profits. This is the motivation for small vendors to be "indomitable" in the midnight snack market. The natural formation and development of midnight 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.

game analysis of midnight snack market

(1) game between vendors and "black cats" (police)

(2) game between students and Danyuan

(4) solution to the problem of street food stalls

From the above economic analysis, it can be seen that the reason why this problem has been unresolved 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. However, practice has proved that both methods are not feasible. First of all, it is difficult to define the subject of taxation for 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 proportion of transfer is difficult to determine, which will result in endless bargaining between beneficiaries and attackers. Moreover, from the above analysis, it can be seen that this method will only reduce market efficiency. Therefore, many people think it is better to maintain the status quo.

V. Conclusion and Significance

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

first, if the formation and development of the market is not the spontaneous action of economic actors to pursue their own interests, but only the wishful thinking and independent action of government officials, then the government behavior has the content of non-government behavior and the nature of anti-market behavior, and the result is to 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 action of economic actors in pursuit of their own interests, without the intervention and role of real government actions, without the services and arrangements provided by the government, although the direction of marketization will not deviate, its development speed is slow and its missing aspects are hard to make up.

third, if the market develops and forms, there will be spontaneous actions of economic individuals and effective regulation and strong promotion by the government in response to natural trends, 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.

Note:

① Students usually return to their dormitory from the self-study classroom at this time. Because the dinner time is usually from 4: 31 to 6: 11, after about three hours of self-study, most of them are hungry at this time.

② This is very obvious in the cold winter. It is said that it takes less than 31 seconds for the seller to make an omelet.

③ This assumption is purely for the convenience of analysis. In fact, when a small trader is caught, he will not lose all his products, and he may escape. There is every reason to believe that small traders have made rational choices. It cannot be understood that the police have no incentive to catch these "illegal" vendors, such as the small commodity market on Guonian 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, which are sold in 1.5 yuan in Danyuan, but in 1.5 yuan in Lianhua Supermarket.

⑦ In the summer of 2111, the food poisoning incident in Danyuan was an example. Although some rectification has been carried out since the fall of 2111, 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 Fake and Inferior Phenomena;

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

(4) Emily Chamley-Wright: The Local System and Economic Cost in Africa is selected from The Revolution of Development Economics, translated by Huang Zuhui Jiang Wenhua, Shanghai Sanlian Bookstore.

(5) Zhang Shuguang, The case of "Government, Farmers and Market-Shandong Huimin's" Big Market "Will Destroy" Small Market "and Zhejiang Yiwu Small Market Become a Big Market.