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Market Experiments -a case of imperfect competition-

Market Experiments -a case of imperfect competition-. Written by Khodori Eko Purwanto 3008 011 22. What…. Characteristics of imperfect competition. -Producer with market power-

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Market Experiments -a case of imperfect competition-

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  1. Market Experiments -a case of imperfect competition- Written by Khodori Eko Purwanto 3008 011 22

  2. What… Characteristics of imperfect competition -Producer with market power- Small number of producers are competing in the market with big market share and power to control demand and supply. -Non standard products- The products do not have standardization in feature or composition, even from a producer. -High entry barriers- It is relatively difficult to enter into the market. -Low information- Producers and consumers can not obtain sufficient information about the product, price, and market.

  3. How… Seller 52 65 65 71 76 100 90 70 62 70 70 80 83 95 Buyer 90 70 80 65 79.99 50 65 95 75 81 65 78 73 60 Regulated price Reported Data Survey Analysis

  4. How… 3,092.3 X + 51,736 = - 2,780.2 X + 94,209 X = 7.2325 Y = 74,101.14

  5. How… Average price of seller = 74,929 Average price of buyer = 73,357 Price range : ¥ 71,000 - ¥ 74,000 Number of deal : 8 deals

  6. Conclusion… -Government in imperfect competition- Interest: increase the taxable income from seller and buyer. Require to push the profitable deal happened by market intervention. Based on the survey and analysis from Statistics Bureau: What the government should do? -Imposing the highest retail price for producers- In this case, the producers must sell their products below the highest price of ¥ 74,000. Producers can not sell the products more than ¥ 74,000. The government do not have to regulate the buyers’ price. It will be adjusted by itself due to the imposing of highest retail price.

  7. ARIGATOU

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