To What Extent Does Wonton (Dumpling Soup) Market in Binhu District, Wuxi Fulfill the Characteristics of Monopolistic Competition?

Abstract

“Wonton” is one of the traditional Chinese food, especially popular in the south-east region such as the city Wuxi. There are numerous Wonton retailers around Wuxi, making it hard to analyze such abundant retailers. Consequently, I decide to highlight a specific area in Wuxi city, Binhu District, one of Wuxi’s biggest districts and then initiate research and paper.

The purpose of this research is to investigate the extent to which the Wonton (dumpling soup) in Wuxi fulfills the characteristics of monopolistic competition.

Individual retailers do not have significant market power, having a slight ability to fluctuating prices. The price is particularly of great significance in the Wonton market. Since there are no large-sized firms dominating the market, ample small retailers compete with each other. While some characteristics of monopolistic competition are present—different types of shops with various prices such as chain retailers and individual retailers—most of Wonton retailers in Binhu District have very similar prices.

Secondary data have been polled through the internet, mostly from the official website for the local shop information section. To make sure the availability and accuracy of data, I went to each random-selected Wonton retailers’ stores and interviewed two owners and some consumers in the shops. To achieve a further understanding of consumers’ behaviors, 75 people were asked to complete two questionnaires (APPENDIX I II). After analyzing the information from the sample surveys, it provided me with insights into how consumer decisions influence the market.