The measurement of spatial market power: An empirical study of China Everbright Bank

This paper is based on our research in which our objective has been to distinguish market power with spatial market power and to measure it effectively. Our research involves not only discovering the method for banks, but also to create a route that would be available to other industries to use. The paper allowed us to investigate space markets and economic regions as phenomena, and to create a technology for providing measurement access to banks capacities. This study is designed to take China Everbright Bank as an empirical example being given 10 capacity indicators effectively as its natural capacity system expression, and to contribute to creating a spatial market power. We have spatial market values which are deduced from function-M as the base. We produce the product as the spatial market power with weighted capacity indicators with value-M eventually. The bank in different areas has spatially differentiated environment. It shows that about 5-38% of economic surplus earned by developed regions and from -10% to -50% of economic deficit lost by undeveloped regions in China for China Merchants Bank, which is due to spatial market power. © 2013 IEEE.