Economic analysis of street food stall profiteering Xiao International Finance 0790 1 139 This paper analyzes the causes of street food stall profiteering by using the knowledge of supply and demand market power, production cost and game theory, and puts forward corresponding solutions. Keywords economic analysis of street food stalls profiteering countermeasures 1. The problem of profiteering in street food stalls has long been a very common phenomenon from primary school to university, whether outside the school or in dormitory areas. Many law enforcement officers, even the surrounding residents, have been trying to eliminate these small business vendors, but those small business vendors are still emerging one after another, and their business is very prosperous. Why is this happening? How can this phenomenon exist for a long time? Based on the author's actual investigation outside the north campus of Shenyang Normal University, this paper analyzes the reasons for the profiteering of street food stalls by using the knowledge learned in economics. Second, the reasons for the profiteering of street food stalls In recent years, with the growth of the enrollment scale of colleges and universities and the improvement of the overall consumption level of college students, whenever night falls outside the north dormitory area of Shenyang Normal University, especially between 17 and 2 1, it will become the world of street food stalls. There are more than a dozen vendors on both sides of the road outside the North Dormitory Area, and the types of food supplied are extremely rich, from spicy kebabs in Sichuan to mutton kebabs in Xinjiang, from bacon cakes in Shenyang to pies in Haicheng, which almost bring together local flavors and delicacies. The unit price of snacks ranges from 1 yuan to 5 yuan, which is very suitable for students' consumption level. These food stalls are a heavy blow to Guangshengxuan, the old place and other food and beverage supermarkets on both sides of the road. This phenomenon of street food stalls is popular not only because of the price advantage formed by tax evasion, but also because of the time advantage, because students don't have to waste a lot of time waiting in line in the canteen. Even due to the fierce competition in food stalls, the share of catering supermarkets such as Guangshengxuan and Laodifang in the snack market is also decreasing. 1, driven by high profits, why is street food stalls so popular? The answer is simple-there are high profits. The indomitable motivation of small business hawkers in the food stall market lies in these simple six words. The natural formation and development of food stall market is a kind of creation and miracle of small business hawkers on the road to getting rich, and it is also the establishment and application of free economic rights, and it is the inevitable result of free people seeking maximum profits for themselves, which is completely in line with economic laws. Street food stalls are open at noon and night every day, attracting many students with their characteristics and convenience, with considerable income but low cost (cost analysis will be explained in detail later). Therefore, the high profits of street food stalls drive small traders to be keen on this. 2. Students in the market with demand don't go to the canteen to eat, because they are dissatisfied with the food, price and environment in the canteen, and also because of the attraction of street food stalls. The delicacy of street food stalls is a great temptation for students, so students are willing to eat, which corresponds to an economic saying that "there will be a market if there is demand". Third, the economic analysis of street food stalls profiteering phenomenon 1, street food stalls market game theory game analysis is to study how people act in various strategic situations. (1) Game between small business hawkers and urban management law enforcement officers We assume that urban management law enforcement officers inspect street food stalls, and small business hawkers refuse to cooperate with the inspection, which will inevitably lead to conflicts with law enforcement officers. In this way, law enforcement officers will confiscate the things of small business hawkers, so that both sides lose, law enforcement officers have no interests to receive, and small business hawkers need to buy things and set up stalls again in the future; Of course, there is bound to be another situation, that is, small business hawkers actively cooperate with law enforcement officers during spot checks, and then go to the urban management center to ask law enforcement officers to be flexible afterwards. In this way, law enforcement officers can benefit, and small business vendors don't have to spend more money on materials. Why not? Therefore, this is a one-time game and multiple games between small business hawkers and urban management law enforcement personnel. (2) The game between students and the canteen. The reason why students don't want to go to the canteen is that the food in the canteen is not delicious, and the quality and taste of the food don't meet the needs of students; Second, the service and environment are not good, the canteen is noisy, and the tables, chairs and chopsticks are unsanitary; Third, the price is unreasonable, and the canteen rises once every few months, which is difficult for students to accept. The canteen staff and students are not playing one-time games, but many games. Therefore, students will be willing to go to the canteen only if the canteen partners do a good job in food hygiene and charge reasonable fees. 2. Cost analysis of street food stalls Explicit costs include fixed costs and variable costs. There is no rent problem in the fixed cost of street food stalls, and the variable cost and investment risk are also small. Moreover, food stalls can be carried out after the normal work of small vendors, so the hidden cost of street food stalls is very small. It is precisely because the cost of street food stalls is very small that it will become an emerging industry with huge profits. V. Solving the profiteering phenomenon of street food stalls From the above economic analysis, it can be seen that the reasons why the problem of street food stalls has not been solved for a long time are more complicated. I think it can be solved in the following two ways: one is to disperse the customers of street food stalls by improving the quality of canteens. For example, after investigating students' tastes, improve the quality of meals, pay attention to the hygiene of canteens, and set reasonable prices. Second, street food stalls can be standardized. Street food stalls are also a kind of culture, such as Hong Kong and South China. Street food stalls are allowed by the government. Therefore, we can ensure food hygiene and reasonable price through standardized management of street food stalls, thus making street food stalls outside the campus become a culture. Conclusion At present, the phenomenon of profiteering in street food stalls has not been well solved. I believe that in the near future, with the continuous improvement of the market and the realization of street food stall culture, the profiteering phenomenon of street food stalls will be improved, and the hygiene and price of food will be guaranteed. Tutor Yan Wang refers to Principles of Economics 1 Gregory Man Kun, Principles of Economics of Machinery Industry Press-English Version 2 Gregory Man Kun, Machinery Industry Press.