英文版产业经济学教程第3章垄断.pptVIP

Chapter 3 Monopoly 3.1 Market structure: classification, characteristic and measure 3.1.1 Determinants Market concentration ratio Product differentiation Barriers to entry and exit Price elasticity Short-term cost structure 1、Market concentration ratio ：firm i’s output, sale, assets amount, employee number，etc. Herfindahl-Hirschman index X size of the industry Xi firm i’s size Si market share of firm i n number of firms 2、 Product differentiation Cross price elasticity Advertising density= AD/SL AD= sum of advertising SL= product sale 植草益（1997，31 industries） AD/SL≥3.5% or AD ≥2 billion yen very high product differentiation 1%≤AD/SL3.5% or 1billion yen ≤AD2 billion yen high product differentiation AD/SL1% or AD 1billion yen medium product differentiation 3、 Barriers to entry and exit Barriers to entry Barriers to entry is the advantage shared by current firms that means incumbents can keep price higher than competitive level without entry of new firms. (Bain) Barriers to entry be defined as a kinds of additional cost burdened by entrant while incumbent is needless. (Stigler) components absolute cost advantage scale economics capital barrier technological barrier law barrier strategic barrier Barriers to exit Assets speciality and sunk cost Severance pay Law restriction Classification of market structure：1、 Robinson J.（1933） Core assumptions of Perfect competition Very low industry concentration/atomicity Product homogeneity Perfect information Free entry Equal access (any firm can get all producing technology) agriculture goods markets or mature futures markets. eg. Per