《微观经济学》课程PPT教学课件（英文版）Chapter 11 寡头垄断 Oligopoly

Chapter 11 Oligopoly

1 Chapter 11 Oligopoly

Define market structures ■ Number of sellers Product differentiation ■ Barrier to entry

2 Define market structures ◼ Number of sellers ◼ Product differentiation ◼ Barrier to entry

Types of Market Structure Are products differentiated? No Yes One Mo dongpo Not applicable How many producers e Oligopoly are there? Perfect Monopolistic Man competition competition 3

3 Types of Market Structure

Oligopoly Asmall number of firms mutually dependent on one another. and each has a substantial market share

4 Oligopoly: ◼A small number of firms mutually dependent on one another, and each has a substantial market share

Characteristics of oligopoly mutual dependence or interdependence each firm has a substantial market share, thus is big enough to affect market price a barriers to entry

5 Characteristics of Oligopoly ◼ mutual dependence (or interdependence) ◼ each firm has a substantial market share, thus is big enough to affect market price ◼ barriers to entry

B arriers to entry Entry limiting pricing Capacity barrier Economies of scope New product development

6 Barriers to entry: ◼ Entry limiting pricing ◼ Capacity barrier ◼ Economies of scope ◼ New product development

Barriers to entry: strategic deterrence Entry limiting pricing Capacity barrier Economies of scope New product development

7 Barriers to entry: strategic deterrence ◼ Entry limiting pricing ◼ Capacity barrier ◼ Economies of scope ◼ New product development

Entry limiting pricing if cost situation allows setP≤ min ac of the potential entrant

8 Entry limiting pricing if cost situation allows, set P< min LAC of the potential entrant

Capacity barrier Keep excess capacity as a threat for larger Q and lower p

9 Capacity barrier ◼Keep excess capacity as a threat for larger Q and lower P

Other barriers ■ Economies of scope (multi-product cost barrier new product development 10

10 Other barriers: ◼ Economies of scope ◼ (multi-product cost barrier) ◼ new product development