中级微观经济学讲义14——不完全竞争.pdf

Chapter 14 TRADITIONAL MODELS OF IMPERFECT COMPETITION By WALTER NICHOLSON Slides prepared by Linda Ghent (Eastern Illinois University) Modified by Huihua NIE (Renmin Unversity of China) 中国经济学堂www.ChinaES. 1 Content • Perfect competition: P=MC and 0 profit in long run • Monopoly: MC=MRP and no entry • Imperfect competition: pricing under homogeneous goods, product differentiation, entry and exit 中国经济学堂www.ChinaES. 2 Pricing Under Homogeneous Oligopoly • The market is perfectly competitive on the demand side – consumers are price taker • The good obeys the law of one price – no transaction costs or information costs • There is a relatively small number of identical firms (n) – firm’s goal is to maximize profits 中国经济学堂www.ChinaES. 3 Pricing Under Homogeneous Oligopoly • The inverse demand function for the good shows the price that buyers are willing to pay for any particular level of industry output P = f(Q) = f(q +q +…+q ) 1 2 n • Each firm’s goal is to maximize profits  = f(q +q +…q )q – C (q ) i 1 2 n i i i 中国经济学堂www.ChinaES. 4 Four Pricing Models • Quasi-competitive model (mined water) – P/q = 0 i • Cartel model (OPEC) – firms collude perfectly like a monopolizer • Cournot model (Unicom vs. Telecom) – q /q = 0 j i • Conjectural variations model (Mobile vs. Unicom) – q /q 0