In the chemical industry market, large chemical companies are usually the earlier market entrants, and small and medium-sized chemical companies are latter entrants to the market. Therefore, the question of how small and medium-sized chemical companies enter the market and survive in competition is worth studying in depth. This paper uses the game theory of Stackelberg oligopolistic competition to construct a market entry game model for small and medium-sized chemical companies. Through the model derivation, it is found that the decisive factor for whether small and medium-sized chemical companies enter the chemical industry market or not is the fixed cost they need to pay for entering the market, its market share after they entering the market and whether they can increase consumer surplus determine whether the government will provide support.
