Transcript Document 9652196

Matakuliah
Tahun
: F0882 - Economic Analysis
: 2009
OLIGOPOLY AND MONOPOLISTIC
COMPETITION
Chapter 3
Learning Outcomes
• Behavior of Imperfect Competitors
• Innovation and Information
• A Balance Sheet on Imperfect Competition
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3
Concentration Ratios Are Quantitative
Measures of Market Power
The Nature of Imperfect Competition
1. Cost
2. Barriers to Competition
3. Strategic Interaction
Theories of Imperfect Competition
1. Collusive Oligopoly
2. Monopolistic Competition
3. Rivalry among the Few
4. Game Theory
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Collusive Oligopoly Looks
Much Like Monopoly
Monopolistic Competitors Produce Many
Similar Goods
Free Entry of Numerous Monopolistic
Competitors Wipes Out Profit
Firms Can Increase Their Profits through
Price Discrimination
Monopolists Cause Economic Waste by
Restricting Output
Perfect Competition