ConceptTourConceptTourPerfectCompetition完全競爭Monopoly壟斷Oligopoly寡頭壟斷MonopolisticCompetition壟斷性競爭ImperfectCompetition不完全競爭MarketStructure市場結構Market市場Whatisa“MARKET”?Whatisa“MARKET”?InEconomics,aMarketisdefinedasacontextinwhichexchangeofgoodsandservicesbetweensellersandbuyerstakesplace.AMarketexistswheneveratransactionismade.Fourfeatures:1.LargeNo.ofBuyers&Sellers2.HomogeneousProducts3.FreeEntry&Exit4.PerfectMarketInformationLargeNo.ofBuyers&Sellers•theactionofanindividualbuyerorsellerisunabletoaffectthemarketpriceBuyersSellersHomogeneousProducts•theproductsinthemarketmustbeidenticalintheeyesofconsumersFreeEntryandExit•FirmsarefreetoentryorleavethemarketWelcometoPerfectlyCompetitiveMarketExit!!Entry!!PerfectMarketInformation•Buyers&Sellersknowallmarketinformationaboutgoodse.g.PriceQualityQuantityExample:•ThestockexchangeisacloseexampleFourFeatures:•1.LargeNo.ofBuyers&Sellers•2.DifferentiatedProducts•3.FreeEntry&Exit•4.ImperfectMarketInformationSameasP.C.SameasP.C.ProductDifferentiation•Afirmcanuseproductdifferentiationtopromotesales.Techniquesare:•newdesigns•advertising•brandingImperfectInformationoftheMarket•Sellers&Buyersdon’thaveperfectinfo.onprice&qualityofgoodsExample:•RiceisanexampleFourfeatures:1.AFewDominantSellers2.SimilarbutDifferentiatedProducts3.EntryisRestricted4.ImperfectMarketInformationSameasP.C.&M.C.Fewdominantsellers•Oligopolieshastoconsiderthereactionsofotherfirmsbeforemakinganydecision•pricerigidity•priceleadership•non-pricecompetition•Marketbehavior:SimilarbutDifferentiateProducts•theproductsareclosesubstitutestooneanotherEntryisRestricted•itisdifficultbecauseofgovernmentregulation/hugecapital/technologicalrequirementsImperfectlyCompetitiveMarketEntry?SameasM.C.&O.FourFeatures:1.OnlyOnesellerinthewholemarket2.Noclosesubsitiute3.HighlyDifficult(evenimpossible)toEntry4.Imperfect(highlyrestricted)MarketInformationOnlyOneSellerintheWholeMarket•buyerscanobtainthegoodsorservicesfrommonopolyonlyNoCloseSubstitutes•buyersaredifficulttofindanothergoodstosatisfythesamewantHighlyDifficult(evenimpossible)toentry•itisbecauseofmonopolypowerSourcesofMonopolyPower•governmentownership•governmentfranchise•ownershipofimportantresources•hugecapitalrequirement•economiesofscaleNoEntry!!•ExamplesMonopolyOligopolyMonopolisticPerfectCompetitionCompetition1.No.ofsellers2.No.ofbuyers3.Productsnature4.Easeofentry5.InformationavailabilityOneManyNoclosesubstituteForbiddenRestrictedRestrictedRestrictedEasytoenterPerfectInformationManyManyManyEasytoobtainFreeentryHeterogeneousHeterogeneousHomogeneousAfewdominantsellersManyMany
