The Advantage Analysis of Industry Cluster Based on Network Structure

The industry cluster is a network organization that has the complex vertical and horizontal relation. From the perspective of game theory, this paper has carried on deep analysis and researches into the vertical structure and the horizontal structure of the industry cluster respectively. Through the above analysis and researches, it can be concluded that the horizontal structure of industry cluster may save the transaction cost and the vertical structure may reduce the production cost, which may further reduce the cluster enterprises´ total cost. Therefore, the competitive advantage of the industry cluster in the aspect of cost is obtained.