Oligopoly & Monopolistic Competition - Chapter 10
-
Upload
gayle-abaya -
Category
Documents
-
view
232 -
download
0
Transcript of Oligopoly & Monopolistic Competition - Chapter 10
-
7/26/2019 Oligopoly & Monopolistic Competition - Chapter 10
1/18
-
7/26/2019 Oligopoly & Monopolistic Competition - Chapter 10
2/18
Oligopoly and
Imperfect Competition
Chapter 10
-
7/26/2019 Oligopoly & Monopolistic Competition - Chapter 10
3/18
Main topics:
Behavior of imperfect competitors
Effects of innovation & information
Welfare aspects
-
7/26/2019 Oligopoly & Monopolistic Competition - Chapter 10
4/18
Behavior of imperfect competitors
at!re of imperfect competition
" Costs
" Barriers to entry
" #trategic interaction
$heories
" Oligopoly " coll!sive & non%cooperative
" Monopolistic competition
rice discrimination
-
7/26/2019 Oligopoly & Monopolistic Competition - Chapter 10
5/18
Concentration 'atios (re
)!antitative Meas!res of Mar*et
o+er
Chapter 10
Figure 10-1
-
7/26/2019 Oligopoly & Monopolistic Competition - Chapter 10
6/18
(, Imperfect Competition
Meas!res of mar*et po+er
" Concentration ratios: e,g, -%firm concentration
" .erfindahl%.irschman Inde/ ..I
" Other ratios
at!re of imperfect competition
" Minim!m costs2vol!me
" Barriers to competition2entry
" #trategic interaction
-
7/26/2019 Oligopoly & Monopolistic Competition - Chapter 10
7/18
.erfindahl inde/
. 3 4 s5 3 4 6i2)5
-
7/26/2019 Oligopoly & Monopolistic Competition - Chapter 10
8/18
Coll!sive Oligopoly 7oo*s
M!ch 7i*e Monopoly
Chapter 10
Figure 10-2
-
7/26/2019 Oligopoly & Monopolistic Competition - Chapter 10
9/18
Monopolistic Competitors rod!ce
Many #imilar 8oods
Chapter 10
Figure 10-3
-
7/26/2019 Oligopoly & Monopolistic Competition - Chapter 10
10/18
9ree Entry of !mero!s
Monopolistic Competitors Wipes
O!t rofit
Chapter 10
Figure 10-4
-
7/26/2019 Oligopoly & Monopolistic Competition - Chapter 10
11/18
(, Imperfect Competition cont;d
-
7/26/2019 Oligopoly & Monopolistic Competition - Chapter 10
12/18
9irms Can Increase $heir rofits
thro!gh rice =iscrimination
Chapter 10
Figure 10-5
-
7/26/2019 Oligopoly & Monopolistic Competition - Chapter 10
13/18
Innovation & information
Behavior of large corporations
" #eparation of o+nership & control
Innovation information & #ch!mpeterianeconomics
" Economics of information
" Intellect!al property rights
" #ch!mpeterian hypothesis
-
7/26/2019 Oligopoly & Monopolistic Competition - Chapter 10
14/18
Welfare aspects
Economic costs of imperfect competition
" Inflated prices & positive economic profits
" Ins!fficient o!tp!t
Economic >enefits
" rod!ct variety
" Economies of scale & scope etc,
Interventions see later slides
-
7/26/2019 Oligopoly & Monopolistic Competition - Chapter 10
15/18
Monopolists Ca!se Economic
Waste >y 'estricting O!tp!t
Chapter 10
Figure 10-6
-
7/26/2019 Oligopoly & Monopolistic Competition - Chapter 10
16/18
erfect Competition
Chapter 10
Figure 10-7
-
7/26/2019 Oligopoly & Monopolistic Competition - Chapter 10
17/18
8overnment intervention
(nti%tr!st policy" 7egislative history
#herman (nti%tr!st (ct
'o>inson%atman (ct against ?restraint of trade@" 1A constit!tion
olicies to enco!rage competition
" E,g, Electricity distri>!tionD mo>ile phones 'eg!lation
" E,g, Energy reg!latory >oard
-
7/26/2019 Oligopoly & Monopolistic Competition - Chapter 10
18/18
8overnment intervention cont;d