market structure

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Market structure

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What is the market structure

The so-called market structure refers to a certain market structuremarketThe internal relations and characteristics of various elements in the market, including market suppliers, demanderssupplyAnd the demanders, andmarketThe relationship between the existing suppliers and demanders and the suppliers and demanders entering the market.

Structural composition of market structure

1、market subject

Market subject refers tomarketIndividuals and organizations engaged in economic activities, enjoying rights and assuming obligations. Any market subject's participation in economic activities has a clear purpose, with the goal of maximizing its own interests in meeting social needs.

The main body of the market is profitable, which is its most essential and important feature. The market subject also has independence, which is mainly manifested inproperty rightIndependence andmanagement rightIndependence. Flexibility, followed by market playersMarket lawyesmanagement strategyAnd strategy adjustment is its basic function in the market. In addition, market subjects also have the characteristics of mutual relevance, equality and legitimacy.

2、Market pattern

Market pattern refers to the position and relationship between buyers and sellers in exchange activities under the condition of market economy. The emergence of this status and relationship depends on the supply and demand of commodities in the market.

3、Market concentration

Market concentration is aIndustrial markettop fewenterprisemarket shareProportion of the whole market.

(1) Absolute concentration analysis. Absolute concentration is expressed by the cumulative number of market shares of the largest n enterprises in the industrial market and the proportion of the whole industrial market.

(2) Relative concentration analysis. GenerallyLorenz Curve andGini coefficientexpress

Division basis of market structure

There are three main bases for dividing the market structure:

(1) The number of producers or enterprises in the industry;

(2)productThe degree of difference;

(3)Barriers to entryThe size of the.

Classification of market structure

Market structure is the relationship between the factors that constitute the market. According to the basic elements of the market, the market structure can be divided into market subject structure, market object structure, market space structure and market time structure.

Market main body structure.

Market subjects are organizations or individuals engaged in trading activities in the market. They include both natural persons and legal persons in a certain form of organization; It includes both profit-making institutions and non-profit institutions. Under normal circumstances, market players include enterprises, residents, governments and other non-profit institutions. Enterprises are the most important market players. In addition, market players also include some intermediaries, such asLaw firm, accounting firms, etc.

Market object structure.

Market object refers to all kinds of goods and services provided to the marketlabour services。 Therefore, the market object structure includes market commodity structure and market labor structure. Commodities provided to the market can be divided into means of production and means of consumption. A reasonable market commodity structure should not only be conducive to the development of production, but also adapt to the changes of consumer demand. Market labor service structure includes productive labor service structure and consumer labor service structure. Productive services are services that directly serve the production process, and consumer services are services that directly serve the lives of residents.

Market spatial structure.

Market spatial structure is a market structure divided according to the size of market spatial diffusion and absorption. It can be divided into regional market, national market and world market. Regional market is a market where commodity exchange takes region as the activity space. It is formed naturally with the development of commodity economy according to the natural, economic and social conditions of each economic region; National market is a market in which commodity exchange takes the whole country as the activity space. The national market is composed of several interrelated and radiating regional markets, which is the integrated expression of the interconnection of regional markets. The formation of national market is the sign that commodity economy has entered the developed stage; The world market is a market in which commodity exchange takes the whole world as the activity space. The world market is the product of international division of labor, the overall market connected by foreign trade among countries all over the world, and the expansion and extension of the domestic market.

Market time structure.

Market time structure is a market structure divided according to the length of time and trading mode of market trading activities. It is generally composed of spot trading, futures trading and credit trading. Spot trading is "face-to-face transaction and clearing of silver and goods", and the buying and selling are synchronous in time. Spot transaction has a flexible regulatory effect on economic activities, but it is mainly suitable for the transaction of small consumer goods and services; Futures trading refers to the trading contract reached in the commodity exchange, and then the trading of silver and goods acceptance in a certain period in the future, "transaction first, delivery later". Futures trading is a complex trading method, which generally has three characteristics: obligation, forward and speculation. Futures trading has the function of preserving and dispersing risks, which is conducive to promoting the development of production and the stability of the market; Credit transaction, namely loan transaction, mainly has two basic forms: one is extensionpayment, i.e. take the goods first and then pay; The second is the prepayment transaction, that is, payment first and then picking up. What they have in common is that the activities of the exchange parties and the exchange objects are separated in time. Credit transactions are conducive to coordinationrelation between supply and demandBut it is also prone to chain credit crisis.

Types of market structure

The main market structures include:

(1)perfect competition

  perfect competitionyeseconomicsIdeal inmarket competition State is also one of several typical market forms. The result of perfect competition is consistent withPareto optimality

Generally, if the size of buyers and sellers in the market is large enough, and each individual (including buyers and sellers) isPrice recipientMoreover, when the market price cannot be affected alone, such a competitive state is called perfect competition. At the same time, it is also called such a marketPerfect competitive market

More microcosmically, perfect competition refers to competition in the marketproductIt is homogeneous, the information is complete, and producers can enter and leave the market freely.

In addition, some scholars believe that regardless ofmarket size How, as long as individuals in the market believe or believe that the market price is given and individuals can not affect the market price, such a state can be judged as competitive. For example, it can be proved that in the single product competitive market, if the two enterprises compete with Bertrand, they are competitive. In other words, sufficient market size is one of the sufficient conditions for perfect competition, but it is not a necessary condition.

(2)Monopolistic competition

  Monopolistic competitionIt is one of the typical market forms in economics and arises under the following conditions:

1. There are many producers and in the marketconsumer

twoconsumerWith clear preferences, goods and services are "non-homogeneous",

3. Free access.

Enterprises engaged in monopolistic competition have monopolistic nature in the short term, but in the long termZero profitandOvercapacityof

It is worth noting that although monopolistic competition has always beenMicroeconomicsThe topic of market and competition is studied in, but it is more and more used by macro economists, especially under the trend of modeling focusing on micro basis after the 1970s.

(3)Oligopoly

Oligopoly, a market dominated by a few sellers (oligarchs)Market status。 In English, the word comes from "few sellers" in Greek. In this market state, each oligarch pays attention to the behavior of other oligarchs. A remarkable feature of the market under oligopoly is the interaction of oligarchs. Made by an oligarchpolicy decisionIt affects other oligarchs and is also affected by the decisions of other manufacturers. So I'm doing itstrategic planning When, it should consider the possible response of other market participants to this decision. This is a typical game situation.

(4)MONOPOLY

Monopoly, or seller monopoly, Taiwan usually translates monopoly, which generally means that the only seller faces competitive consumers in one or more markets through one or more stages; Contrary to the buyer monopoly (EN: monopsony). Monopolists can adjust freely in the marketPriceAnd output (cannot be adjusted at the same time).

It is generally believed that the basic reason for monopoly isBarriers to entryIn other words, the monopolist can maintain the position of sole seller in its market because other enterprises cannot enter the market and compete with it. There are three reasons for the monopoly of entry barriers:

oneresourcesForm a monopoly: key resources are owned by one enterprise.

2. The government creates monopoly: the government gives an enterprise the exclusive right to produce a certain product or service.

3. Natural monopoly:production costsA producer is more efficient than a large number of producers.

(5)natural monopoly

Natural monopoly causeindustryThe monopoly state formed by the natural needs of development. In general,scale economyIt can form a natural monopoly, such as some utilities, such as enterprises supplying tap water and electricity,investmentIt is very large, covers a wide range andprofitIt should not be too high. It is indeed a waste to set up multiple sets of water pipelines or power and telecommunications lines in an area, which is a natural monopoly; For another example, in a small township, only one car rental shop or one laundry is enough to cover the service needs, which is also a natural monopoly; Another example is high-tech products. Due to the technological R & D ability, only one or a few manufacturers can produce them in a certain period of time, forming a natural monopoly.

The western natural monopoly theory is based onscale economyScope economyandCost additivityIt explains the reasons for the emergence and existence of natural monopoly.

(6)Buyer monopoly

Buyer monopoly refers to a market type with only one buyer and many sellers. In this case, the buyer has monopoly. If the buyer monopolist wants to maximize his interests by buying products in this market, he will buy less quantity and pay a lower price. In the buyer monopolized market, the purchase volume is determined by the marginal value and marginal cost of the buyer monopolist.

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Comments (5 in total)

Tip: the content of the comment is the user's comment on the item“market structure"The discussion has nothing to do with our views and positions.
180.207.32. * published at 17:07 on November 13, 2014

Please help with the following question "how to solve the situation of market failure!"

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180.207.32. * published at 17:10 on November 13, 2014

Please answer my question: how to solve the situation of market failure! Thank you

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61.183.230. * published on October 13, 2015 at 01:12

This is an unnecessary problem. The invisible hand will solve everything. Regardless of the policy, the market itself has the ability of self-regulation. In the case of not a financial crisis, the government policy will work, but it is only regulation. If the market subject cannot respond quickly, the market cannot be changed in a short time,

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119.142.30. * published at 21:11 on May 18, 2017

The main reasons for market failure are 1. Externality 2. Market power. The solution to externality is mainly externality internalization, such as pollution tax. The solution to market forces is mainly the government's antitrust law. The financial crisis is different every time. We should analyze specific problems.

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110.166.248. * published at 09:16 on April 15, 2020

180.207.32. * published at 17:07 on November 13, 2014

Please help with the following question "how to solve the situation of market failure!"

No one may be able to answer your question. Due to structural problems, the market will inevitably fail

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