| Summary: | 碩士 === 國立高雄大學 === 國際企業管理碩士學位學程 === 102 === As the income of Taiwanese has risen, then the demand for cars has grown, the automobile industry often plays a dominant role in a country's economic development. With firms in the fringe acting as price takers, the dominant firm, as the only agent, which is able to set price. By using the Herfindahl index, we find that the automobile industry in Taiwan is highly concentrated, and dominant firm plays a key role in setting price. Locally made cars influence the macroeconomic of country is illustrated with reference to the Taiwan automobile industry.
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