Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Chapter 9Oligopoly and Firm Architecture */

Oligopoly and Market ConcentrationOligopoly ModelsEfficiency Implications of OligopolyThe Sales Maximization ModelThe Architecture of the Ideal Firm

*/ the way the firm is organized, operates, responds to changesin markets: in core competencies, a flat structure, short lines of Command, highly specialized, producing new products

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Bab 9Oligopoli dan Bentuk Perusahaan */

Oligopoli dan Konsentrasi PasarModel OligopoliDampak Efisiensi dari OligopoliModel Penjualan MaksimumPengembangan Perusahaan yg Ideal

*/ bagaimana perus. diorganisasi, bekerja menjawab perobahan di pasar: kemampuan intinya, struktur datar, hubungan singkat dalam komando. spesialisasi khusus, memproduksi produk baru.

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *OligopolyFew sellers of a homogeneous (= pure oligopoly) or differentiated product Nonprice competition > based on advertising, services, product differentiation Barriers to entryDuopoly: Two sellers only

Pure oligopoly : Homogeneous productDifferentiated oligopoly : Differentiated product

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *OligopoliSedikit penjual dari satu produk yang sama atau berbeda (terdiferensiasi) Persaingan non-harga > berdasarkan iklan, pelayanan, pembedaan produk Hambatan untuk masuk berusahaDuopoly: hanya dua penjual saja

Pure oligopoly : produk homogen (baja, aluminium)Differentiated oligopoly : produk terdiferensiasi (mobil, rokok, sabun, minuman segar, deterjen)

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Sources of OligopolyEconomies of scaleLarge capital investment required (automobiles, aluminum, steel industries)Patented production processes (own a patent)Brand loyalty (based on quality & service) Control of a raw material or resource Government franchise ( to only a few firms = barriers)Limit pricing (a low price to discourage entry) Sacrifice SR profits in order to maximize LR profits

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Sumber Terjadinya OligopoliSkala ekonomi yang besarMembutuhkan investasi modal besar (industri mobil, aluminum, baja)Produksi dengan hak paten (memilik patent)Pelanggan setia (berdasarkan mutu dan pelayanan) Kontrol terhadap bahan bakuPemerintah memberikan hak monopoly ( bag sedikit perusahaan = hambatan)Pembatasan harga (harga yg rendah utk menghambat masuk) Mengorbankan laba SR untuk memaksimum-kan laba LR.

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Measures of OligopolyConcentration Ratios: percentage of total sales (4, 8, or 12 largest firms in an industry) p.367Indeks Herfindahl (H) p. 368H = Sum of the squared market shares of all firms in an industry H = 90 + 10 (if 2 firms 90% & 10%) Theory of Contestable MarketsIf entry is absolutely free and exit is entirely costless then firms will operate as if they are perfectly competitive > an airline leave the market > to other routes

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Pengukuran OligopoliRasio Konsentrasi: persentase dari total penjualan(4, 8, atau 12 perus. terbesar di dalam industri) p.367Herfindahl Index (H) p. 368H = Jumlah pangkat dua pangsa pasar dari seluruh perus dalam suatu industri H = 90 + 10 (if 2 firms 90% & 10%) Teori Pasar BersaingJika masuk betul-betul bebas dan keluar biayanya tidak ada maka perus. akan beroperasi selagi mereka bersaing sempurna > sebuah penerbangan meninggalkan pasar > ke rute lain

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Cournot ModelProposed by Augustin Cournot (160 years ago)Behavioral assumptionFirms maximize profits under the assumption that market rivals will not change their rates of production. See Figure 9-1Bertrand ModelFirms assume that their market rivals will not change their prices.

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Model Cournot Diusulkan oleh Augustin Cournot (160 years ago)Asumsi Tingkah-lakuPerus. memaksimumkan laba dengan asumsi bahwa pesaing tidak merobah tingkat produksinya. See Figure 9-1Model BertrandPerus. mengasumsikan bahwa pesaing tidak merobah harganya.

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Cournot ModelExampleTwo firms (duopoly)Identical productsMarginal cost is zeroInitially Firm A has a monopoly and then Firm B enters the market

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Model Cournot ContohDua perusahaan (duopoli)Produk samaMarginal cost sama dengan nolAwalnya Perusahaan A memonopoli dan kemudian Perusahaan B masuk ke pasar.

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Cournot ModelAdjustment processEntry by Firm B reduces the demand for Firm As productFirm A reacts by reducing output, which increases demand for Firm Bs productFirm B reacts by increasing output, which reduces demand for Firm As productFirm A then reduces output furtherThis continues until equilibrium is attained

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Model CournotProses PenyesuaianMasuknya Perus. B mengurangi permintaan produk perus. APerus. A bertindak dengan mengurangi output, yang menaikkan permintaan produk perus. BPerus. B bertindak dengan manaikkan produksi, yang mengurangi permintaan produk perus. APerus. A kemudian terus mengurangi output Keadaaan ini berlanjut sampai tercapainya keseimbangan.

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Cournot ModelFigure 9-1At point E each duopolist Sells Q =4 and P = 4p. 369Compet equil:P=$0 & Q=12MC = 0

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Model Cournot Figure 9-1Pd titik E setiap duopolist menjual Q =4 dan P = 4p. 369

P=$0 & Q=12MC = 0

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Cournot ModelEquilibriumFirms are maximizing profits simultaneouslyThe market is shared equally among the firmsPrice is above the competitive equilibrium ($0) and below the monopoly equilibrium ($6) see Figure 9.1

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Model Cournot KeseimbanganPerus. Secara bersamaan memaksimumkan laba Pasar terbagi sama diantara perus. Harga diatas keseimbangan bersaing ($0) dan dibawah keseimbangan monopoli ($6) see Figure 9.1

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Kinked Demand Curve ModelProposed by Paul Sweezy (1939)If an oligopolist raises price, other firms will not follow, so demand will be elasticIf an oligopolist lowers price, other firms will follow, so demand will be inelasticImplication is that demand curve will be kinked, MR will have a discontinuity, and oligopolists will not change price when marginal cost changes

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Model Kurva Demand TerpatahDiajukan oleh Paul Sweezy (1939)Jika satu oligopolis menaikkan harga, perusahaan lain tidak mengikuti permintaan jadi elastisJika harga diturunkan, perusahaan lain akan mengikuti, sehingga permintaan jadi inelastisDampaknya kurva permintaan akan patah, MR akan terputus, dan oligopolist tdk akan merobah harga jika MC berobah.

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Kinked Demand Curve ModelDemand curve = ABC has a kink at $6 and Q = 40MR = AGEHJ the best level of output = 40 unitsat point E any shift in MC curve would leaveprice and output unchanged. Figure 9-2

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Model Kurva Permintaan TerpatahKurva oermintaan = ABC patah pd harga $6 dan Q = 40MR = AGEHJ jumlah output terbaik = 40 units padatitik E pergeseran kurva MC mengakibatkan harga dan produksi tidak berobah.Figure 9-2

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *CartelsCollusion Milk, Air Transportation, TaxiCooperation among firms to restrict competition in order to increase profitsMarket-Sharing CartelCollusion to divide up markets: geograph. areaCentralized Cartel OPECFormal agreement among member firms to set a monopoly price and restrict outputSee Figure 9-3

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *KartelKolusi susu, angkutan udara, TaxiKerjasama diantara perus. Utk membatasi persaingan dengan tujuan meningkatkan laba Kartel Pembagian PasarKolusi utk membagi pasar: wilayah geografisKartel Terpusat OPECKesepakatan formal diantara anggota perus. Utk menentukan harga monopoli dan membatasi outputSee Figure 9-3

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Centralized CartelD = total mkt demand curve; MR = for two firms; E MC = sum of twoMC centralized authority set P = $8 and Q = 50 see profit of Firm 1 and 2. 12a21

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide * Kartel TerpusatD = kurva total permintaan pasar, MR = utk kedua perus.; E MC = jumlahDari dua MC otoritas terpusat menetapkan P = $8 and Q = 50 Lihat laba perus.1 and 2. 12a21

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Price LeadershipImplicit CollusionPrice Leader (Barometric Firm)Largest, dominant, or lowest cost firm in the industryDemand curve is defined as the market demand curve less supply by the followersFollowersTake market price as given and behave as perfect competitors

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Pemimpin HargaKolusi ImplisitPemimpin Harga (Barometer Perus.)Terbesar, dominan, atau biaya perus. terendah dalam industriPermintaan pasar ditentukan saat kurva permintaan pasar rendahnya supply oleh pengikutPengikutMengambil harga pasar apa adanya dan bertindak sebagai pesaing sempurna.

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Price Leadership

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Pemimpin Harga

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Efficiency of OligopolyPrice is usually greater then long-run average cost (LAC)Quantity produced usually does correspond to minimum LACPrice is usually greater than long-run marginal cost (LMC)When a differentiated product is produced, too much may be spent on advertising and model changes

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Efisiensi OligopoliHar ga lebih besar dari biaya rata-rata LR (LAC)Jumlah diproduksi umumnya berhubungan dengan LAC terendahHarga biasanya lebih besar dpd biaya marginal LR (LMC)Jika satu produk berbeda diproduksi, terlalu banyak akan dikeluarkan untuk iklan dan perobahan model .

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Sales Maximization ModelProposed by William BaumolManagers seek to maximize sales, after ensuring that an adequate rate of return has been earned, rather than to maximize profitsSales (or total revenue, TR) will be at a maximum when the firm produces a quantity that sets marginal revenue equal to zero (MR = 0)

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Model Penjualan MaksimumDiajukan oleh William BaumolManajer berupaya memaksimumkan penjualan, setelah yakin bahwa tingkat keuntungan yang cukup sudah tercapai, dari pada memaksimumkan laba.Penjualan (total penerimaan, TR) akan pada tingkat maksimum jika perus. Memproduksi suatu jumlah yang menghasilkan penerimaan marginal sama dengan nol (MR = 0)

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Sales Maximization ModelMR = 0 where Q = 50MR = MC where Q = 40

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Model Penjualan Maksimum MR = 0 dimana Q = 50MR = MC dimana Q = 40

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Global OligopolistsImpetus toward globalizationAdvances in telecommunications and transportationGlobalization of tastesReduction of barriers to international trade

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Oligopolis GlobalPenggerak ke globalisasiMajunya telekomunikasi dan transportasiGlobalisai seleraPengurangan hambatan dalam perdagangan internasional

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Architecture of the Ideal FirmCore CompetenciesOutsourcing of Non-Core TasksLearning OrganizationEfficient and FlexibleIntegrates Physical and VirtualReal-Time Enterprise

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Cara Pengembangan Perusahaan IdealKompetensi IntiMensubkontrakkan yg bukan tugas utamaPembelajaran berorganisasiEfisen dan FleksibelMengintegrasikan secra fisik dan mayaPerusahaan yag bisa segera bereaksi

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Extending the FirmVirtual CorporationTemporary network of independent companies working together to exploit a business opportunityRelationship EnterpriseStrategic alliancesComplementary capabilities and resourcesStable longer-term relationships

Prepared by Robert F. Brooker, Ph.D. Copyright 2004 by South-Western, a division of Thomson Learning. All rights reserved.Slide *Perluasan PerusahaanPerusahaan MayaJaringan kerja sementara dari perusahaan yang tidak ada hubungan, kemudian bekerja sama untuk mengambil keuntungan dari kesempatan yang adaPerusahaan Saling-terkaitAliansi Strategis dari perus independent utk mengembangkan kemampuanSaling melengkapi kemampuan & resourcesHubungan yang stabil dalam jangka pajang

Managerial Economics, Ch. 9Managerial Economics, Ch. 9January 2012Improved by Nurzaman Bachtiar*Improved by Nurzaman BachtiarManagerial Economics, Ch. 9Managerial Economics, Ch. 9January 2012Improved by Nurzaman Bachtiar*Improved by Nurzaman Bachtiar