14-Monopoly-and-Antitrust-Policy-管理经济学-教学课件.ppt

1、 2006 Prentice Hall Business Publishing Economics R.Glenn Hubbard,Anthony Patrick OBrien1st ed.Prepared by:Fernando&Yvonn QuijanoMonopoly and Antitrust Policy 2006 Prentice Hall Business Publishing Economics R.Glenn Hubbard,Anthony Patrick OBrien1st ed.CHAPTER 14:Monopoly and Antitrust Policy2In thi

2、s chapter,we will develop an economic model of monopolies that can help us to analyze their effects on the economy.After studying this chapter,you should be able to:Define monopoly.Explain the four main reasons monopolies arise.Explain how a monopoly chooses price and output.Use a graph to illustrat

3、e how monopoly affects economic surplus.Discuss government policies toward monopoly.Time Warner Rules ManhattanLEARNING OBJECTIVES12345 2006 Prentice Hall Business Publishing Economics R.Glenn Hubbard,Anthony Patrick OBrien1st ed.CHAPTER 14:Monopoly and Antitrust Policy 2006 Prentice Hall Business P

4、ublishing Economics R.Glenn Hubbard,Anthony Patrick OBrien1st ed.CHAPTER 14:Monopoly and Antitrust Policy 2006 Prentice Hall Business Publishing Economics R.Glenn Hubbard,Anthony Patrick OBrien1st ed.CHAPTER 14:Monopoly and Antitrust Policy5Where Do Monopolies Come From?LEARNING OBJECTIVE2Barriers t

5、o entry may be high enough to keep out competing firms for four main reasons:Government blocks the entry of more than one firm into a market.One firm has control of a key raw material necessary to produce a good.There are important network externalities in supplying the good or service.1.Economies o

6、f scale are so large that one firm has a natural monopoly.2006 Prentice Hall Business Publishing Economics R.Glenn Hubbard,Anthony Patrick OBrien1st ed.CHAPTER 14:Monopoly and Antitrust Policy6Where Do Monopolies Come From?Entry Blocked by Government Action By granting a patent or copyright to an in

7、dividual or firm,which gives it the exclusive right to produce a product.1.By granting a firm a public franchise,which makes it the exclusive legal provider of a good or service.2006 Prentice Hall Business Publishing Economics R.Glenn Hubbard,Anthony Patrick OBrien1st ed.CHAPTER 14:Monopoly and Anti

8、trust Policy7The End of the Christmas Plant Monopoly14-2At one time,the Ecke family had a monopoly on growing poinsettias,but many new firms entered the industry.2006 Prentice Hall Business Publishing Economics R.Glenn Hubbard,Anthony Patrick OBrien1st ed.CHAPTER 14:Monopoly and Antitrust Policy8Whe

9、re Do Monopolies Come From?PATENTS AND COPYRIGHTSPatent The exclusive right to a product for a period of 20 years from the date the product was invented.Copyright The legal right of the creator of a book,film,or piece of music to exclusive right to the creation.PUBLIC FRANCHISESPublic franchise A de

10、signation by the government that a firm is the only legal provider of a good or service.CONTROL OF A KEY RESOURCEAnother way for a firm to become a monopoly is by controlling a key resource.This happens infrequently because most resources are widely available from a variety of suppliers.2006 Prentic

11、e Hall Business Publishing Economics R.Glenn Hubbard,Anthony Patrick OBrien1st ed.CHAPTER 14:Monopoly and Antitrust Policy9Are Diamond(Profits)Forever?The De Beers Diamond Monopoly14-3DeBeers promoted the sentimental value of diamonds as a way to maintain its position in the diamond market.2006 Pren

12、tice Hall Business Publishing Economics R.Glenn Hubbard,Anthony Patrick OBrien1st ed.CHAPTER 14:Monopoly and Antitrust Policy10Where Do Monopolies Come From?Network ExternalitiesNetwork externalities Exist when the usefulness of a product increases with the number of consumers who use it.2006 Prenti

13、ce Hall Business Publishing Economics R.Glenn Hubbard,Anthony Patrick OBrien1st ed.CHAPTER 14:Monopoly and Antitrust Policy11Where Do Monopolies Come From?Natural MonopolyNatural monopoly A situation in which economies of scale are so large that one firm can supply the entire market at a lower avera

14、ge total cost than can two or more firms.14-1Average Total Cost Curve for a Natural Monopoly 2006 Prentice Hall Business Publishing Economics R.Glenn Hubbard,Anthony Patrick OBrien1st ed.CHAPTER 14:Monopoly and Antitrust Policy12 Is the“Proxy Business”a Natural Monopoly?14-1LEARNING OBJECTIVE2 2006

15、Prentice Hall Business Publishing Economics R.Glenn Hubbard,Anthony Patrick OBrien1st ed.CHAPTER 14:Monopoly and Antitrust Policy13How Does a Monopoly Choose Price and Output?LEARNING OBJECTIVE3Marginal Revenue Once AgainRemember that when a firm cuts the price of a product,one good thing and one ba

16、d thing happens:The good thing:It sells more units of the product.The bad thing:It receives less revenue from each unit than it would have received at the higher price.2006 Prentice Hall Business Publishing Economics R.Glenn Hubbard,Anthony Patrick OBrien1st ed.CHAPTER 14:Monopoly and Antitrust Poli

17、cy14How Does a Monopoly Choose Price and Output?Marginal Revenue Once Again14-2Calculating a Monopolys Revenue 2006 Prentice Hall Business Publishing Economics R.Glenn Hubbard,Anthony Patrick OBrien1st ed.CHAPTER 14:Monopoly and Antitrust Policy15How Does a Monopoly Choose Price and Output?Profit Ma

18、ximization For a Monopolist14-3Profit-Maximizing Price and Output for a Monopoly 2006 Prentice Hall Business Publishing Economics R.Glenn Hubbard,Anthony Patrick OBrien1st ed.CHAPTER 14:Monopoly and Antitrust Policy16 Finding Profit Maximizing Price and Output for a Monopolist14-2LEARNING OBJECTIVE3

19、PRICE QUANTITYTOTAL REVENUEMARGINAL REVENUE(MR=TR/Q)TOTAL COSTMARGINALCOST(MC=TC/Q)$173$51$56$16464$1363$7$1557511718$146849809$1379179010$12896510111Dont Assume That Charging a Higher Price Is Always More Profitable For a Monopolist 2006 Prentice Hall Business Publishing Economics R.Glenn Hubbard,A

20、nthony Patrick OBrien1st ed.CHAPTER 14:Monopoly and Antitrust Policy17Does Monopoly Reduce Economic Efficiency?LEARNING OBJECTIVE4Comparing Monopoly and Competition14-4What Happens If a Perfectly Competitive Industry Becomes a Monopoly?2006 Prentice Hall Business Publishing Economics R.Glenn Hubbard

21、,Anthony Patrick OBrien1st ed.CHAPTER 14:Monopoly and Antitrust Policy18Does Monopoly Reduce Economic Efficiency?Measuring the Efficiency Losses from Monopoly14-5The Inefficiency of MonopolyWe can summarize the effects of monopoly as follows:Monopoly causes a reduction in consumer surplus.Monopoly c

22、auses an increase in producer surplus.1.Monopoly causes a deadweight loss,which represents a reduction in economic efficiency.2006 Prentice Hall Business Publishing Economics R.Glenn Hubbard,Anthony Patrick OBrien1st ed.CHAPTER 14:Monopoly and Antitrust Policy19Does Monopoly Reduce Economic Efficien

23、cy?How Large Are the Efficiency Losses Due to Monopoly?Market power The ability of a firm to charge a price greater than marginal cost.Market Power and Technological ChangeThe introduction of new products requires firms to spend funds on research and development.Because firms with market power are m

24、ore likely to earn economic profits,they are also more likely to introduce new products.2006 Prentice Hall Business Publishing Economics R.Glenn Hubbard,Anthony Patrick OBrien1st ed.CHAPTER 14:Monopoly and Antitrust Policy20Government Policy toward MonopolyLEARNING OBJECTIVE5Collusion An agreement a

25、mong firms to charge the same price,or to otherwise not compete.Antitrust Laws and Antitrust EnforcementAntitrust laws Laws aimed at eliminating collusion and promoting competition among firms.2006 Prentice Hall Business Publishing Economics R.Glenn Hubbard,Anthony Patrick OBrien1st ed.CHAPTER 14:Mo

26、nopoly and Antitrust Policy21Government Policy toward MonopolyLAWDATE PURPOSESherman Act1890Prohibited“restraint of trade,”including price fixing and collusion.Also outlawed monopolization.Clayton Act1914Prohibited firms from buying stock in competitors and from having directors serve on the boards

27、of competing firms.Federal Trade Commission Act1914Established the Federal Trade Commission(FTC)to help administer antitrust laws.Robinson-Patman Act1936Prohibited charging buyers different prices if the result would reduce competition.Cellar-Kefauver Act1950Toughened restrictions on mergers by proh

28、ibiting any mergers that would reduce competition.Antitrust Laws and Antitrust EnforcementImportant U.S.Antitrust Laws14 1 2006 Prentice Hall Business Publishing Economics R.Glenn Hubbard,Anthony Patrick OBrien1st ed.CHAPTER 14:Monopoly and Antitrust Policy22Government Policy toward MonopolyMergers:

29、The Trade-off between Market Power and EfficiencyHorizontal mergers Mergers between firms in the same industry.Vertical mergers Mergers between firms at different stages of production of a good.2006 Prentice Hall Business Publishing Economics R.Glenn Hubbard,Anthony Patrick OBrien1st ed.CHAPTER 14:M

30、onopoly and Antitrust Policy23Government Policy toward MonopolyMergers:The Trade-Off between Market Power and Efficiency14-6A Merger That Makes Consumers Better Off 2006 Prentice Hall Business Publishing Economics R.Glenn Hubbard,Anthony Patrick OBrien1st ed.CHAPTER 14:Monopoly and Antitrust Policy2

31、4Government Policy toward MonopolyThe Department of Justice and the Federal Trade Commission Merger GuidelinesMarket definitionMeasure of concentrationMerger standards 2006 Prentice Hall Business Publishing Economics R.Glenn Hubbard,Anthony Patrick OBrien1st ed.CHAPTER 14:Monopoly and Antitrust Poli

32、cy25Government Policy toward MonopolyThe Department of Justice and the Federal Trade Commission Merger GuidelinesMEASURE OF CONCENTRATION 1 firm,100%market share(a monopoly):HHI=1002=10,000 2 firms,each with a 50%market share:HHI=502+502=5,000 4 firms,with market shares of 30%,30%,20%,and 20%:HHI=30

33、2+302+202+202=2,600 10 firms,each with market shares of 10%:HHI=10(102)=1,000 2006 Prentice Hall Business Publishing Economics R.Glenn Hubbard,Anthony Patrick OBrien1st ed.CHAPTER 14:Monopoly and Antitrust Policy26Government Policy toward MonopolyThe Department of Justice and the Federal Trade Commi

34、ssion Merger GuidelinesMERGER STANDARDS Post-Merger HHI Below 1,000.These markets are not concentrated,so mergers in them are not challenged.Post-Merger HHI Between 1,000 and 1,800.These markets are moderately concentrated.Mergers that raise the HHI by less than 100 will probably not be challenged.M

35、ergers that raise the HHI by more than 100 may be challenged.Post-Merger HHI Above 1,800.These markets are highly concentrated.Mergers that increase the HHI by less than 50 points will not be challenged.Mergers that increase the HHI by 50 to 100 points may be challenged.Mergers that increase the HHI

36、 by more than 100 points will be challenged.2006 Prentice Hall Business Publishing Economics R.Glenn Hubbard,Anthony Patrick OBrien1st ed.CHAPTER 14:Monopoly and Antitrust Policy27The Antitrust Case Against Microsoft14-4Software pioneer,monopolist,or both?2006 Prentice Hall Business Publishing Econo

37、mics R.Glenn Hubbard,Anthony Patrick OBrien1st ed.CHAPTER 14:Monopoly and Antitrust Policy28Government Policy toward MonopolyRegulating Natural Monopolies14-7Regulating a Natural Monopoly 2006 Prentice Hall Business Publishing Economics R.Glenn Hubbard,Anthony Patrick OBrien1st ed.CHAPTER 14:Monopol

38、y and Antitrust Policy29Why Im Filing Chapter 11 2006 Prentice Hall Business Publishing Economics R.Glenn Hubbard,Anthony Patrick OBrien1st ed.CHAPTER 14:Monopoly and Antitrust Policy30Antitrust lawsCollusionCopyrightHorizontal mergersMarket powerMonopolyNatural monopolyNetwork externalitiesPatentPublic franchiseVertical mergers