In this study,in 2004 the Shandong-based economic census data,by statistical,comparative analysis,and other means,the paper discusses the wood processing industry of Shandong scale structure,as well as economies of scale,the impact of factors.

Replicator dynamics and computer simulation techniques are used to construct a reduced form model which explores the evolution of market share by combining network externalities and economies of scale.

Substitution between network externality and economy of scale;

However,from the estimation results of the overall effect of economic regulation in present China,by way of cost-profit analysis and index analysis of regulation effect,one can learn that the effect index of economic regulation of the present China is still relatively low.