Слайд 3Perfect (complete, absolute) monopoly
Perfect monopoly = there is only one supplier of
a good in the market
In fact 80-90% share in the market is treated as example of monopoly.
Private monopoly is very rare. It is usually public (national) firm.
Слайд 4Features of monopoly
Product of monopolist doesn’t have close substitutes.
Its customers are
very dispersed. They can’t influence decisions of monopolist.
Monopolist is price-setter.
Monopolist doesn’t have incentives to use promotion tools in order to compete (unless as public relations tool).
Monopolized market is rather rare.
Слайд 5Examples
Big public utilities firms (energy, water, gas).
Cosmic industry.
Arming industry.
Слайд 6Reasons for monopolisation
Barrier of entry and exit:
large capital requirements,
limited market („there is
place only for one player”),
legal barriers (patents, concessions, licences).
Слайд 7Price discrimination
Price discrimination = differentiating of price of the same good
Types of
price discrimination:
different prices for different groups of buyers,
different prices for additional units of good.
Слайд 8Reasons for price discrimination
Price discrimination is used when it is possilbe to
divide buyers into groups of different price elasticity of demand. It is rational to differentiate price in order to maximize revenues from sales.
Слайд 9Antimonopoly policy
Monopolist may be tempted to overuse its strong position in the
market.
This the reason for using antimonopoly policy by governement.
Слайд 11Features of monopolistic competition
Relatively large number of firms.
Their products are close
substitutes.
Individual firm can influence price it receives in the market, but this impact is limited and dependent on possibilities to differentiate goods.
It is very frequent case.
Easiness of enter and exit.
Слайд 12Examples
Retailers.
Clothes industry.
Shoes industry.
Furniture industry.
Слайд 13Means of competing
Price competition (rarely).
Quality competition.
Marketing competition.
Слайд 15Features of oligopoly
Small number od firms; several of them have predominant position.
Products
can be differentiated (more often) as well as standardized.
Substantial barriers of entry and exit (mostly technological or legal).
Majority of markets has this structure.
Слайд 16Examples
Raw materials: petroleum, metals, brimstone.
Consumption goods of one-time use: coffee, tea, means
of cleannes.
Lasting consumption goods: cars, electronic equipment, ships
Слайд 17Means of competing
Price competition (extremely rare because risky; frequent practice is price
agreement).
Quality competition.
Marketing competition.
Competing by innovations (creating new types of demand).