麦圭根《管理经济学》英文版PPT-McGuigan-14e-Chapter11

6
Figure 11.1 How the Adoption of a Technology Leads to Increasing Returns
© 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
4Leabharlann Ch 11 – Sources of Market Power for a Monopolist
(1 of 1)
• Monopolist or near-monopoly dominant firms enjoy several sources of market power
• A firm may possess a patent or copyright that prevents others from producing the same product
5
Ch 11 – Sources of Market Power for a Monopolist
Increasing Returns from Network Effects (1 of 2)
• These can also be a source of monopoly market power
• A firm may control critical resources • A third source may be a government-authorized franchise • Monopoly power also happens in natural monopolies because of
© 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
3
Ch 11 – Monopoly Defined
(1 of 1)
• Monopoly is defined as a market structure with significant barriers to entry in which a single firm produces a highly differentiated product
• Marketing and promotions are generally subject to diminishing returns; See Figure 11.1; example: Microsoft and Apple
• Sales penetration curve – An S-shaped curve relating current market share to the probability of adoption by the next garget customer, reflecting the presence of increasing returns
Managerial Economics
Applications, Strategies and Tactics, 14e
James R. McGuigan R. Charles Moyer Frederick H. deB. Harris
© 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
CONTRIBUTION MARGIN PERCENTAGE • REGULATED MONOPOLIES • THE ECONOMIC RATIONALE FOR REGULATION
© 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
7
Ch 11 – Sources of Market Power for a Monopolist
Increasing Returns from Network Effects (2 of 2)
• But monopoly is seldom assured for 3 reasons:
• First, a higher price point for innovative new products can offset cost savings from increasing returns of a competitor (Example: Apple)
• By achieving more than 30% acceptance in the marketplace, the technology becomes the industry standard
• Achieving greater than 30% share, leads to increasing returns in marketing caused by a network effect that displaces other competitors
• Without any close substitutes for the product, the demand curve for a monopolist is often an entire relevant market demand
• Just as purely competitive market structures are rare, so too pure monopoly markets are rare
© 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
significant economies of scale over a wide range of output
© 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
1
PART IV – PRICING & OUTPUT DECISIONS: STRATEGY AND TACTICS
Chapter 11 – Price and Output Determination: Monopoly and Dominant Firms
© 2017 Cengage Learning® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.
• Second network effects tend to occur in technology-based industries that have experienced falling input prices; Figure 11.2
• Third, technology products whose primary value lies in their intellectual property have revenue sources dependent on renewals of governmental licensures and product standards
2
Chapter 11 – Price & Output Determination: Monopoly and
Dominant Firms
Overview (1 of 1)
• MONOPOLY DEFINED • SOURCES OF MARKET POWER FOR A MONOPOLIST • PRICE AND OUTPUT DETERMINATION FOR A MONOPOLIST • THE OPTIMAL MARKUP, CONTRIBUTION MARGIN, AND