烟草会议中欧讲稿1.ppt

William A. Fischer Lessons from Competitve Experiences W.A. Fischer CEIBS, Shanghai February 1, 1999 Understanding Rivalry:The Heart of the Competitive Equation The Nature of Economic Inquiry The Nature of the Players The Nature of Rivalry Who are these 揻irms?and what are their roles? Some fundamental assumptions Other Underlying Assumptions profits [surpluses] being seen as a signal of performance in a market a faith in market allocation of resources in complex situations over government allocation -- because the customer is voting with their purchases the maximization of the overall social welfare function by the accumulation of numerous personal decisions -- the customer being seen as being in the best position to determine what they want Establishing the Arena In such a classical market setting, it is important to consider economies of scale The history of the industrial revolution was one of economies of scale. The Centrality of Scale Economies The Economics of the Industrial Revolution In such a classical market setting, it is important to consider economies of scale The history of the industrial revolution was one of economies of scale. In markets where consumers are price sensitive, larger firms can use their cost advantage to gain an appreciable advantage over smaller firms. In the US, it has been shown that firm size is positively correlated with profitability. However, cause and effect are not well-established. Also, larger shares for some, mean lower shares for others. In such a classical market setting, it is important to consider economies of scale The history of the industrial revolution was one of economies of scale. But even in such a non-complex setting, bigger was not always better. In fact, in studies in the US, mid-century, minimum optimal plant/firm size appeared to be small relative to market size [single-digit]. The Centrality of Scale Economies The Economics of the Industrial Revolution In such a classical market setting, it is important