产业组织理论-教案-Industrial-Organization

IndustrialOrganizationTaughtbyDr.Prof.FangQiyunTextbook:IndustrialOrganization:AStrategicApproachWrittenbyJeffreyChurch&RogerWarePart1.Foundations•Introduction•Thewelfareeconomicsofmarketpower•TheoryofthefirmCh.1.Introduction•3questionsinIO•1.Whyaremarketsorganizedorstructuredastheyare?•4aspectsofmarketstructure•(1)Firmboundaries.Whatdeterminestheextentofafirm’sactivitiesinproduction?Inparticular,whatarethefactorsresponsiblefordeterminingtheextenttowhichafirmisverticallyintegrated?•(2)Sellerconcentration.sellerconcentrationisameasureofthenumberandsizedistributionoffirms.Industrialorganizationattemptstoidentifythefactorsthatinfluenceordeterminesellerconcentration.•(3)Productdifferentiation.Productdifferentiationexistswhenproductproducedbydifferentfirmsarenotviewedasperfectsubstitutesbyconsumers.Whatarethefactorsresponsiblefortheextentofproductdifferentiation.•(4)Conditionsofentry.Theconditionsofentryrefertotheeasewithwhichnewfirmscanenteramarket.3questionsinIO•2.Howdoesthemannerinwhichmarketsareorganizedaffectthewayinwhichfirmsbehaveandmarketperform?•Ifproductsproducedbydifferentfirmsarenotviewedasperfectsubstitutesbyconsumers,thentherewillbearolefoenon-pricecompetition.Infactpricecompetitionmightplayasecondaryroletoothercompetition,suchasproductcharacteristics,advertising,andresearchanddevelopmentexpenditure.•Amajorareaofresearchinindustrialorganizationisconcernedwiththetheoryofoligopoly:pricingbehaviorinamarketdominatedbyafewlargefirms.•Adifferentkindofstructuralissueconcernsthevariousinstitutionsandpracticesadoptedbyoligopolisticfirmstoaffectthenatureofcompetition.•AdamSmith:competitivemarketsweredesirablebecausetheyledtooutcomesthataresociallyoptimal.Undercertaincircumstances,competition,asifguidedbyaninvisiblehand,resultsinthesociallyoptimallevelofoutputbeingproducedatminimumresourcecost,anddistributedittothosewhovalueitthemost.IOisconcernedwiththeefficiencyormarketperformanceofmarketswhosestructureisnotthatare:Whatwilltheefficiencypropertiesofimperfectlycompetitionmarketsbe,notjustintermsofoutputbutalsointermsofproductvariety,quality,selection,andinnovation?Istherearoleforgovernmentinterventionintermsofregulationorcompetitionpolicy?Canweidentifycombinationsofmarketstructureandfirmbehaviorwheremarketoutcomesaresociallyundesirableandsusceptibletoimprovement?Whataretheeconomicfoundationsforregulationandantitrustpolicy?Whyareintellectualpropertyrights-patents,copyrights,andtrademarks–createdandenforcedbythegovernment?3questionsinIO•3.Howdoesthebehavioroffirmsinfluencethestructureororganizationofmarketsandtheperformanceofmarkets?•Theemphasisofthepreviousquestionwasontheeffectofmarketstructureontheconductoffirms.Theemphasishereisonadoptingamoredynamicperspectiveandrecognizingthepossibilityoffeedbackeffectsfromfirmconducttomarketstructure.Wemightexpectthatstrategieswhichfirmsadopttodayareintendedtochangemarketstructureandthusfirmbehaviortomorrow.Itwouldseeminfactthatmanyaspectsofnon-pricecompetition,suchasresearchanddevelopment,arespecificallydesignedtoalertmarketstructuretomorrow.Clearly,theextentofproductdifferentiationisnotdeterminedonlybyexogenousfactorssuchasthepreferencesofconsumers.Firmshavesomelatitudetochoosethecharacteristics,range,variety,andqualityofproductstheysell.•Twoissuesthathavereceivedagreatdealofattentionare:•Thepotentialstrategiesfirmscanadopttodrivecompetitorsoutofbusinessinordertoestablishamonopolyposition.•Thestrategiesthatmonopolistsandoligopolistscanadopttodetertheentryofnewcompetitors.Thesekindsofstrategiesobviouslymakesellerconcentrationandbarrierstoentryendogenous.ThedemandforIO•2characteristicsofmarketsinmanufacturedgoods•(1)defferentiatedproducts•(2)afewrelativelylargesuppliers•Firmsfacedownwardslopingdemandcurves•Smallnumbersofcompetitorsorthepreferenceofconsumersforaspecificproductsbestowssomedegreeofmarketpoweronfirms,andthecompetitionwillbeimperfect.•Marketpoweristheabilitytoprofitablyraisepriceabovemarginalcost.•IOisthestudyofthecreation,exercise,maintenance,andeffectsofmarketpower.Methodologies(1)•Themethodologyofadisciplinereferstothebasicapproach(es)commonlyusedinadisciplineinthecreationofknowledge.Itisaguideforpractitionersabouthowtogoaboutansweringaquestionorsolvingaproblem.•ThetraditionalapproachinIOistheS-C-P(structure-conduct-performance)paradigm.TheorientationofSCPapproachisprimarilyempirical:researchersinthistraditiontrytouncoverempiricalregularitiesacrossindustries.•The“newIO”hasbeenmoreconcernedwithdevelopingandtestingexplanationsoffirmconduct.•KeydistinguishingfeaturesofthenewIO:•(1)emphasisonspecificindustry•(2)focusondevelopingmodelsoffirmbehavior•(3)empiricalworkisbasedonwell-foundedmodelsoffirmbehaviorMethodologies(2)•Theabilitytodevelopgoodtheoreticalexplanationsoffirmbehaviorisduetothedevelopmentsinnon-cooperativegametheoryinthe1970s.Non-cooperativegametheoryconsistsoftoolsthatareusedtomodelthebehaviororchoicesofagents(individuals,firms,etc.)whenthepayoff(profit)ofachoicedependsonthechoicesofothers.•ThefocusofthenewIOontheconductoffirmsinimperfectlycompet