1、大学课件1Industrial Economics Dr. Wang ShengECNU Oriental Real Estate College大学课件2Chapter 1 Introduction大学课件3Main contents：Theory of industrial organizationDifferentiation：Industrial Economics vs Industrial Organization Theory Major contents： industrial structure ; industrial connection; industrial orga
2、nization;Industrial policies： not an independent domain Popular recognition： industrial economics is really industrial organization theory.大学课件4Industry and industrial organizaitonIndustry1、Chamberlin, Edward H.Competing group(竞争群)Product heterogeneityReplaceable continual industry chain 大学课件5Manufa
3、cturing productive enterprises collectively,especially as distinguished from agriculture( Websters New World Dictionary5a)Any large-scale business activity, such as the tourism industry, for example.(Websters New World Dictionary4b)大学课件6所谓产业，是指提供同一或有密切替代关系产品、服务的同类企业市场关系的集合体（毛林根，1996）。苏东水：单个产业无非是一些具有
4、某种相同生产技术或产品特征的企业的集合，产业存在的基础是这些企业及其组织（苏东水，p474）。但关于产业的界定，“规定产业概念的立足点，与其说是理论上的严密性，不如说是现实上的可用性”（杨冶，1985，p16，转引自毛林根，1996）。产业的分类、界定，“往往划分和集合难以说出前后一贯的分类原则，在应用经济理论领域里，如果囿于基础理论规范的严密性，产业划分就寸步难行”（杨冶，1985，p16）。大学课件7Industrial organization is concerned with the working of markets and industries, in particular t
5、he way firms compete with each other.It emphasizes on the study of the firm strategies that are characteristic of market interaction: price competition, product positioning, advertising, research and development, and so forth.大学课件8Industrial Economics vs Microeconomics Markets running rule also is I
6、Es research objects, and it origins from microeconomists work such as Chamberlin & Mrs Robinsons, so someone says “its just one chapter of microeconomics ”.Explaining pattern: IE chooses more independent factors to make more detailed explanation for real world while the other seeks for the simplicit
7、y of theory and try to make models on possibly little basic assumption and variables.Analysis techniques: History, statistics and theory, three main techniques should be mastered. - Schumpeter,1954 Industrial organization can be generally defined as economical domains which is related with markets a
8、nd is not easily analyzed with competition model in standard textbook. The New Palgrave A Dictionary of Economics,1988,p803大学课件9BibliographyLuis M.B.Cabral(2000) Introduction to Industrial Organization,MIT(Massachusetts Institute Technology) PressMartin,S. (2002) ：Advanced Industrial Economics, 2nd
9、ed, Oxford and Malden: Blackwell泰勒尔(2001)：产业组织理论，中国人民大学出版社骆品亮(2005)：产业组织学，复旦大学出版社奥兹夏伊(2005)：产业组织：理论与应用，清华大学出版社 Cabrals is mainly applied. 大学课件101. A case of Zantac Zantac （branded) 是Wellcome生产的专治溃疡和胃痛药品，其通用名（generic)是雷尼替丁。Wellcome的该药以年销售量16亿美元居全球处方药销量的榜首，其价格远远高于边际成本。为什么Wellcome公司能够大幅度提升价格而不失去顾客？由于W公
10、司专利到期，Novopham公司和其它七家公司已经获得美联邦地区法院许可，以通用名即化学名销售Zantac。尽管有无数证据表明它的功效不比W公司的Zantac差，但其市场价格要少7.5倍。Why?另外，Smithkline公司的Tagament 可替代Zantac ，但它们确实不同，并各有专利。为什么这些药品的价格竞争并没有因此而日趋激烈？大学课件11它们之间没有发生价格战的原因或许可从以下材料来获得解释： 胃痛战役。我们知道治疗胃痛的药品战将会是大规模的，但没想到会如此的激烈。成千上万的美元投入到为树立对TagametHB或Pepcid AC的品牌忠诚而设计的广告中去。Zantac75将在不
11、久之后加入药品战。 The Peoples Pharmacy换言之，广告起到了非常重要的作用。实际上，在大型制药公司里，广告的预算规模和研发的预算规模差不多。药品本身的价值并不重要，而是消费者，或者作为代理人的医生怎样看待药品才更为重要。在推出Zantac的时候， Glaxo 是一家独立公司。此后，它与Wellcome公司合并组成了Glaxo Wellcome公司，目的为两家把以前双方独立研究的同类处方联合起来。Glaxo Wellcome公司的例子说明了产业组织学所关心的几个问题。大学课件12Glaxo Wellcome与其他药品生产商在雷尼替丁市场的竞争产业组织学中所研究的问题： Glax
12、o Wellcome是一家治疗溃疡和胃疼的药品市场中（相关的）有很强的的企业。由Glaxo和 Wellcome合并而的Glaxo Wellcome公司用很明智的研发战略确立其市场地位，使其得以进入已经由Smithkline公司占主导地位的领域。并且通过运用具有攻击性的来增加其市场份额。在短时期内， Zantac 的地位受到专利权的保护。但时过境迁，面临即将的对手（通用药品生产商），如今需要优先考虑的问题。大学课件132. Central questionsIs there market power?How do firms acquire and maintain market power?W
13、hat are the implication of market power?Is there a role for public policy regarding market power? What is market power? Simply,market power may be defined as the ability to set prices above cost, specifically above incremental cost or marginal cost, that is, the cost of producing one extra unit.大学课件
14、143.Origin and evolution of the theory 3.1 Early stage：Chamberlin & Mrs RobinsonThe theory of Monopolistic Competition Chamberlin, Edward H. 1933The Economics of Imperfect Competition Robinson, Joan. 1933 “The revolution of Monopolistic Competition ” (Samuelson,1967) overthrow the view of full monop
15、oly or full competition. And Chamberlin also made research for series questions such as product group、entry and exit、product heterogeneity、competition under overcapacity.大学课件153.2 Harverd school：S-C-P paradigm; structure schoolMason,Edward S. The first research institution for industrial organizatio
16、n theory was established in Harverd university, called “Masonic Lodge”(梅森联谊会) in 1938. He extended the research from monopoly and antitrust to the study toward entire market and manufacturers, put forward the theory system and research direction, made stable base for industrial organization theory s
17、ystem.Bain,Joe S. (The first IO textbook) Industrial Organization, first edition, John Wiley &Sons, Inc 1959 The symbol of accomplishment of TIO (Traditional Industrial Organization) system. In it, He clearly pointed out the industry we talk about is corporation group which produce high replaceable
18、products.大学课件16Bains viewThe essential of SCP frame, is to insist market structure is determinant of market conductions; and in a certain market structure, enterpriser conductions is determinant of market performance.Base analyzing point: full competition -monopoly While the market structure moves f
19、rom one point to another, the result is market behavior attributes vary accordingly, and bringing the change of market performance in the end. The most famous assumption of centralization、entry condition and profit rate.大学课件17Scherers contribution to S-C-P paradigm Industrial Market Structure and Ec
20、onomic Performance, Chicago：Rand-McNally，1970Make a systematic explanation for basic conditions in two sides of supply and demand and emphasize its effect to market structure and behavior.Feedback effect of market behavior to market structure and basic conditions and its effect of market structure t
21、o basic conditions . High R&D level to technology conditions and so change the cost mode and level of product heterogeneity. eg. Collusion may enhance entry barrier and so affect the long-term market structure. eg.大学课件18市场结构卖者和买者的数量产品差别化进入壁垒成本结构垂直一体化企业联合市场行为价格行为产品战略研究与开发广告法律策略市场绩效生 产 和 分 配效率经济进步充分就业
22、经济公平基本条件供给 需求原材料 价格弹性技术 增长率产品的耐用性 替代价值/衡量 市场类型商业习惯 购买方式工会 周期性和季 节性特点Scherer,1970,p5performancestructureconductThe Most Simplified S-C-P frame 大学课件19市场结构卖者和买者的数量产品差别化进入壁垒成本结构垂直一体化企业联合市场行为价格行为产品战略研究与开发广告法律策略固定资产投资共谋市场绩效生产和分配效率经济进步充分就业质量和服务经济公平基本条件供给条件 需求条件原材料 价格弹性技术 替代品产品的耐用性 市场增长地点 市场类型商业习惯 购买方式工会 周期
23、性和季节性特点政府政策反垄断政策规则税收和补助贸易规则价格控制工资规则投资激励就业激励宏观经济政策SCP范式：当前的观点大学课件20Limitation of TIOWithout stable academic base, the main viewpoint is descriptive and not logically inevitable.As a matter of fact, it pay more attention to the one side affect, and can not make clear explanation for logic of strategic
24、 behaviors.Limitation in data collection and model establishment.大学课件213.3 Criticism and comments by Chicago SchoolStigler, George J. (1968)： The Organization of Industry . Homewood, IL：Richard D. IrwinEntry barrier be defined as a kinds of additional cost burdened by entrant and incumbent is needle
25、ss. So the entry barrier it considers is lower than what SCP frame considers.(Stigler,1968)Efficiency by corporations themselves basically determines market structure and performance.(Demsetz,1973)Criticism to assumption of “centralization、entry condition and profit rate” .(Brozen,1971)大学课件223.4 New
26、 Industrial Organization (NIO)： The second trendsNIO, after 70s,20th . Focus on strategic behavior analysis.Game theory as the uniform mean in NIO. And non-cooperative game theory is dominative in it.Cournot-Bertrand paradox Cournot,1838 output selected as optional variable. In equilibrium point, pr
27、ice is higher than marginal cost, but lower than monopoly price. Bertrand,1883 price selected as optional variable. In equilibrium point, price equals to marginal cost. So, although Cournots premise looks not so realistic, but its conclusion suits to reality while Bertrands premise seems more realis
28、tic, but it gets a little extreme conclusion. The solution to this paradox is the topic of large papers of NIO since 70s,20th . 大学课件23Research on contrary causality, namely market behaviors effect to future market structure.Many market phenomena such as price war, patent race, merger, RPM (resale-pr
29、ice maintenance) and advertising war can be explained by strategic interaction among corporations. Thats another aspect of topics of NIO.IO has been the third important aspect among economics research domains, only behind microeconomics and macroeconomics.大学课件24Limitation of NIOMainly origins from i
30、ts means.Bounded rationality Premise is too subtle and sometimes questionable. (especially about shared beliefs) The result is hard to get experiential prove. (Bresnahan and Schmalensee,1987)“类似某种由不规则的碎片所组成的几何体”（Fractalization）， “目前已成为一个由高度精致和特定的模型构成的迷宫，每一模型得出的结论只能应用于满足模型假设的特定场合”。（马丁，2003，p10）大学课件25
31、老产业组织学（即SCP范式，也称哈佛学派，或结构学派等) 也研究与垄断和反垄断相关的问题，但他早期的理论色彩远逊于主要以博弈论为研究方法的新产业组织学。老产业组织学SCP范式中的因果关系（Mason,1939；Bain, 1951,1956），以及后来的双向和反馈关系（Scherer and Ross,1990,p.5），开始主要是经验性的，只是在产业组织学引入博弈论后，才具有了坚实的微观基础和严密的逻辑体系(Jacquemin,1999)。这也是为什么早期老产业组织学及其反垄断政策受到芝加哥学派等不断攻击的缘故。在反垄断问题上的互补大学课件26而博弈论的应用和发展则有力的回击了芝加哥学派的批
32、评，验证和支持了早期老产业组织学的许多结论与政策建议（Munter,1999；马丁，2003，p.9）。博弈论的研究成果表明，在一定的市场环境中，厂商会选择一定的策略性行为以影响竞争对手的行为和市场环境，这些行为具有限制竞争，危害消费者和社会福利的后果，所以反垄断应积极对它们进行规制。这个观念与芝加哥学派不同，但与早期老产业组织学类似，都对主导厂商的市场行为持怀疑态度，只不过与早期老产业组织学不同的是，博弈论具有正统的经济学基础和逻辑，因而能够为反垄断提供更具说服力的论证。博弈论更提升了老产业组织学的观点，高集中度、高市场份额、高进入壁垒等与高利润率之间的关系不仅仅是简单的因果关系，而是在一定
33、初始环境下多方互动的结果（Norman and La Manna,1992,p.3-5），带有“均衡”的色彩（Jacquemin,1999）。大学课件273.5 New trends of the theoryMerger between TIO and NIO Experiential research revivesResearch on industry dynamics大学课件28 4.Research domains1、Bain,1949:structure, organization and corporation ownershipcompanies competing beha
34、vior and pricing strategy-including motivation, strategy and tactics price,output and the corresponding outcomespublic policies elicited by these structure, conduction and outcomes大学课件292、Almarin and Rodney ,1974:Industrial organization focus on applying microeconomics into such areas as monopoly, t
35、rade restriction, public regulation and companies ownership, etc. 大学课件303、Schmalensee,1987:(1)whether manufacturers product for maxing profits assumed by microeconomics theory? Or, more generally, product for owners wealth?(2)what determines the boundary between manufacturers and market?(3)what does
36、 the term market mean?(4)wht kinds of determinants about market structure?(5)and other derivative factors？ (6)what factors determine extent of competing in oligopoly?(7)can incumbents behaviors deter entrants entry?大学课件31(8)could statistical analysis on several industries data prove above assumption
37、s?(9)how will manufacturers set price with market power? whats the welfare meaning of the price discrimination?(10)how does products quality and quantity be decided on incomplete market? And whether its outcome is optimal in any sense?(11)whether the market-determined level of advertising is too hig
38、h? And whether they enhance entry barrier? (12)whether large manufacturers on centralized market is main source of technology progress as Schumpeter said?(13)how important does it mean that deviating from competition?大学课件32Schmalensee,1988 Three subjects:How does of enterprises determine their condu
39、ction, scale, scope and organization? Incomplete competition how market behavior and performance determined by comparatively steady observable variables namely market structure, and how to measure market structure in extensive meaning?Public policies toward enterprisers 大学课件335.Paradigm and meansS-C
40、-P paradigm Regression analysis：Cross-parts statistical analysis in industry levelOligopoly models:Game theoryThe conclusion from game theory is similar with what from S-C-P holders.Obviously, game theory is more accurate and along with mainstream economics.But the former is more fit for positive st
41、udy, and it constitutes the foundation of more visual knowledge which game theory models relying on. Case study大学课件346.Outline1、Introduction2、Behavior of monopolistic manufacturers 3、Price discrimination and two-part pricing4、Vertical restriction5、Base of oligopoly theory6、Product differentiation (h
42、orizontal and vertical)7、Entry barrier and entry determent8、Cartel and collusion9、Advertising10、Research & development大学课件35Chapter 2 Market PowerECNU Oriental Real Estate College大学课件36第一部分主要讨论垄断性行为单一产品和多产品定价、质量选择、价格歧视、纵向控制等。这些部分较一般的讨论垄断力量的运作，即只要企业拥有一定程度的市场力量下的行为，并不要求它拥有完全的垄断地位。这里考察的大部分情况即使在存在竞争者的情况
43、下也会出现。大学课件372.1 Measure of market powerWhat is market power? Simply,market power may be defined as the ability to set prices above cost, specifically above incremental cost or marginal cost, that is, the cost of producing one extra unit.In some maening, central questions of IO areIs there market pow
44、er?How do firms acquire and maintain market power?What are the implication of market power?Is there a role for public policy regarding market power? 大学课件38mmmmmMonopoly pricingp monopoly priceObjective function： max = R- Cfirst-order condition： d/ d p = 0 so p - C(D(p ) = - D(p ) / D(p )Common expre
45、ssion：MR=MC大学课件39Lerner index （Abba Lerner,1934） derived from first-order condition (elasticity rule)： L =( - MC) / = 1 / is demand elasticity wherein monopoly price (positive value) = (dD/dp)*(p/D) Lerner index can be used to measure all kinds of firms market power.mpmp大学课件40mLerner index of monopo
46、ly firmpQLerner index is similar as rate of marginal gross profit.In more cases, we use similar score to measure Lerner index,namely use unit cost replace MCpMCMRDMarginal gross profit大学课件41Monopoly price must in area wherein 1Why?大学课件42mp is in inverse ratio with monopoly power(垄断势力) pqqpmMCMCqmpqm
47、 in left chart is lower than in rights 大学课件43Monopoly and monopoly forceIt seems that is more reasonable than market share used to define monopoly force.For example, in the chart 2.1,firm in the left has 90% market share while the right has 100%,perfect monopoly. So, according to market share index,
48、 the right firm is closer to the position of monopoly firm, but in monopoly force angle, is the left.And depends on much factors, some is static and others are dynamic.大学课件44Table 2-1 Lerner index of some industries in USA行业谷类产品软饮料浓缩炼奶蒸馏水炒咖啡勒纳指数0.7170.5950.5930.5710.507行业奶油麦芽饮料香烟人造冰冰淇淋勒纳指数0.5000.489
49、0.4260.3800.332大学课件452.2 Source of market powerControl scarce resourceSeek supports of stake-holders, such as forbiddon of market entrySome anti-entry strategy (example of USA airline)Economy of scale and scopeLearing effectR&D大学课件462.3 Welfare analysis of market powerGeneral welfare or general surp
50、lus equals to consumer surplus plus suppliers surplus.When consumer price equals to MC, general surplus is maximal.Deadweight loss represents only what we can get when transformed from monopoly to perfect situation. It sets the upper limit for efficiency through rectifying monopoly pricing.大学课件47Con
