經(jīng)濟學專業(yè)英語教程（精編版）（第二版）課件：Oligopoly

《經(jīng)濟學專業(yè)英語教程

（精編版）（第二版）》

Text:Oligopoly

（寡頭壟斷）1.Keywords2.Characteristicsofoligopoly3.Priceandoutputdecisionsforanoligopolist4.AnEvaluationofOligopoly5.QuestionsimperfectlycompetitivemarketstructuremanufacturingindustrystandardizedproductnonpricecompetitionkinkeddemandcurvepriceleadershipproductdifferentiationR＆DpricemakerpricetakerpricerigidityOPECcrudeoilperfectlycompetitivefirm1.Keywords2.1Definitionofoligopoly2.2Characteristicsofoligopoly2.CharacteristicsofoligopolyOligopolyisanimperfectlycompetitivemarketstructureinwhichafewlargefirmsdominatethemarket.Manymanufacturingindustries,suchassteel,aluminum,automobiles,aircraft,drugs,andtobacco,arebestdescribedasoligopolistic.Anoligopolyischaracterizedby:Fewsellers;Eitherahomogeneousoradifferentiatedproduct;Difficultmarketentry.Oligopolyisfoundinreal-worldindustries.2.1Definitionofoligopoly2.2.1FewSellers2.2.2HomogeneousorDifferentiatedProduct2.2.3DifficultEntry2.2CharacteristicsofoligopolyOligopolyiscompetition“amongthefew.”Basically,anoligopolyisaconsequenceofmutualinterdependence.Mutualinterdependenceisaconditioninwhichanactionbyonefirmmaycauseareactionfromotherfirms.Statedanotherway,amarketstructurewithafewpowerfulfirmsmakesiteasierforoligopoliststocollude.2.2.1FewSellersUnderoligopoly,firmscanproduceeitherahomogeneousoradifferentiatedproduct.TheoilsoldbySaudiArabiaisidenticaltotheoilfromIran.Similarly,zinc,copper,andaluminumarestandardizedproducts.Butcarsproducedbythemajorautomakersaredifferentiatedproducts.2.2.2HomogeneousorDifferentiatedProductFormidablebarrierstoentryinanoligopolyprotectfirmsfromnewentrants.Thesebarriersincludeexclusivefinancialrequirements,controloveranessentialresource,patentrights,andotherlegalbarriers.Butthemostsignificantbarriertoentryinanoligopolyiseconomiesofscale.2.2.3DifficultEntry3.1Nonpricecompetition3.2Thekinkeddemandcurve3.3Priceleadership3.4Thecartel3.PriceandoutputdecisionsforanoligopolistMajoroligopolistsoftencompeteusingadvertisingandproductdifferentiation.Insteadof“sluggingitout”withpricecuts,oligopolistsmaytrytocapturebusinessawayfromtheirrivalsthroughbetteradvertisingcampaignsandimprovedproducts.Whymightoligopolistscompetethroughnonpricecompetition,ratherthanpricecompetition?Theansweristhateacholigopolistperceivesthatitsrivalwilleasilyandquicklymatchanypricereduction.Ontheotherhand,itismuchmoredifficulttocombatacleverand/orimportantproductimprovement.3.1NonpricecompetitionThekinkeddemandcurveisademandcurvefacinganoligopolistthatassumesrivalswillmatchapricedecrease,butignoreapriceincrease.Withoutcollusion,thekinkeddemandcurveexistsbecausemanagementtacitlybelievesthatthecompetitionwillnotbe“undersold.”O(jiān)ntheotherhand,apricehikebyonefirmallowscompetitorstocaptureitsshareofthemarket.Oligopolisticfirmsmustmakepricingdecisions,sotheyarepricemakers,ratherthanpricetakers.Butaswewillsoonseeinthekinkeddemandmodel,thehighdegreeofinterdependenceamongoligopolistsrestrictstheirpricingdiscretion.3.2ThekinkeddemandcurveWithoutformalagreement,firmscanplayagameoffollow-the-leaderthateconomistscallpriceleadership.Priceleadershipisapricingstrategyinwhichadominantfirmsetsthepriceforanindustryandtheotherfirmsfollow.Followingthistactic,firmsinanindustrysimplymatchthepriceofperhaps,butnotnecessarily,thebiggestfirm.3.3PriceleadershipAnotherwaytoavoidpricewarsisforoligopoliststoagreetoapeacetreaty.Insteadofallowingmutualinterdependencetoleadtorivalry,firmsopenlyorsecretlyconspiretoformamonopolycalledacartel.Acartelisagroupoffirmsthatformallyagreetocontrolthepriceandtheoutputofaproduct.Thegoalofacartelistoreapmonopolyprofitsbyreplacingcompetitionwithcooperation.3.4Thecartel4.1Thepricechargedfortheproductwillbehigherthanunderperfectcompetition.4.2Bothpriceandoutputmaybehigherunderoligopolythanunderperfectcompetition.4.3Theoligopolistcanearnahigherprofitthanunderperfectcompetition.4.AnevaluationofoligopolyThesmallerthenumberoffirmsinanoligopolyandthemoredifficultitistoentertheindustry,thehighertheoligopolypricewillbeincomparisontotheperfectlycompetitiveprice.4.1Thepricechargedfortheproductwillbehigherthanunderperfectcompetition.Anoligopolyislikelytospendmoneyonadvertising,productdifferentiation,andotherformsofnonpricecompetition.Theseexpenditurescanshiftthedemandcurvetotheright.Asaresult,bothpriceandoutputmaybehigherunderoligopolythanunderperfectcompetition.4.2Bothpriceandoutputmaybehigherunderoligopolythanunderperfectcompetition.Inthelongrun,aperfectlycompetitivefirmearnszeroeconomicprofit.Theoligopolist,however,canearnahigherprofitbecauseitismoredifficultforcompetitorstoentertheindustry.4.3Theoligopolistcanearnahigherpro