产业终极版.doc

Explanation of terms (名词解释) Industrial Organization (IO): the working of markets and industries, in particular the way firms compete with each other. Market power: is defined as the ability to set prices above cost, specifically above incremental or marginal cost. SCP paradigm: Structure: characteristics of the market. number of firms, distribution of market share, degree of product differentiation, entry conditions, Conduct: choices of firms. price, quantity, investments, service, quality. Performance: how firms do. price, consumer surplus, product variety, technological progress. Specific assets: Once those investments are made, the resulting assets can be used only for the specific type for which they were created. Nash equilibrium: A pair of strategies constitutes a Nash equilibrium if no player can unilaterally change its strategy in a way that improves its payoff. Dominant strategies: Whenever a player has a strategy that is strictly better than any other strategy regardless of the other players’ strategy choices, we say that the first player has a dominant strategy. Elasticity rule: A monopolist produces the level of output that marginal revenue equals marginal cost (profit-maximization). Oligopoly: The situation in which there are a few competitors is designated by oligopoly (duopoly双寡头垄断if the number is two). Collusion: Firms attempt to establish agreements between themselves with a view toward increasing their market power, then all firms are better off (normally at the expense of consumers). Two-part tariffs: a fixed part f, which each consumer must pay regardless of quantity purchased, and a variable part p, proportional to the quantity purchased. Minimum efficient scale: is the lowest output level at which the minimum average cost is attained. Barriers to entry: Barriers to entry are obstacles that make it difficult to enter a given market. Barriers to entry protect a firm from the arrival of new competitors. Short answer qu