Chapter 16

Oligopoly

© 2002 by Nelson, a division of Thomson Canada Limited

 BETWEEN MONOPOLY AND PERFECT
COMPETITION
• Pasar Oligopoli merupakan struktur pasar yang berada
diantara struktur pasar persaingan sempurna dan monopoli.
• Pasar Oligopoli termasuk pasar persaingan tidak sempurna,
dimana perusahaan dalam pasar tersebut mempunyai
saingan, tetapi tidak bertindak sebagai price takers.
• Tipe-tipe pasar persaingan tidak sempurna :
– Oligopoli
• Hanya ada sedikit penjual, masing-masing menawarkan produk yang
hampir sama.
– Persaingan Monopolistik
• Beberapa perusahaan menjual produk yang sama tetapi tidak
identik.

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Figure 16-1: The Four Types of Market Structure

Number of Firms?

Many
firms

Type of Products?

One Few Differentiated Identical

firm firms products products

Monopolistic Perfect
Monopoly Oligopoly Competition Competition
(Chapter 15) (Chapter 16) (Chapter 17) (Chapter 14)

• Tap water • Tennis balls • Novels • Wheat

• Cable TV • Crude oil • Movies • Milk

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 MARKETS WITH ONLY A FEW SELLERS

• Karakteristik pasar oligopoli :

– Beberapa penjual menawarkan produk yang
hampir sama/ identik.
– Interdependensi antar perusahaan
– Memproduksi hanya sedikit output dan
menetapkan harga di atas marginal cost

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 Table 16-1: The Demand Curve for Water

Total revenue (and

Quantity (in litres) Price total profit)
0 $120 $0
10 110 1100
20 100 2000
30 90 2700
40 80 3200
50 70 3500
60 60 3600
70 50 3500
80 40 3200
90 30 2700
100 20 2000
110 10 1100
120 0 0

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 Contoh Duopoli
• Harga dan Kuantitas yang ditawarkan
– Harga air dalam pasar persaingan sempurna
sama dengan marginal cost, yaitu 0 :
• P = MC = $0
• Q = 120 litres
– Harga dan kuantitas dalam pasar monopoli
adalah sbb :
• P = $60
• Q = 60 litres

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 The Equilibrium for an Oligopoly
• Why?
• Jack expects Jill to produce 30 L (half the monopoly quantity).
• Jack could produce 30 L, for a total of 60 L and the price would be $60.
The profit would be $1800 (30 L x $60/L). OR…
• Jack could produce 40 L, for a total of 70 L and the price would be $50. His
profit would be $2000 (40 L x $50/L).
• The profit in the market would fall from $3600 to $3500 but Jack’s profit
would be higher ($2000 vs. $1800).
• Of course, Jill might reason the same way and produce 40 L. Total sales
would be 80 L, with a price of $40 and a profit of $3200.

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 The Equilibrium for an Oligopoly
• By pursuing their own self-interest, duopolists produce more than the
monopoly quantity, charge a price lower than the monopoly price, and
earn a profit lower than the monopoly profit.
• The logic of self-interest increases the duopoly’s output above the
monopoly level, it does not lead to the competitive equilibrium.
• If Jack increases his production from 40 L to 50 L while Jill maintains her
production at 40 L, then the total production is 90 L and the price is $30/L.
• Jack’s profit will be $1500 (50 L x $30). He is better off if he leaves
production at 40 L.
• Jack and Jill’s outcome of 40 L is an equilibrium… a Nash Equilibrium.

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 The Equilibrium for an Oligopoly
• A Nash equilibrium is a situation in which
economic actors interacting with one another
each choose their best strategy given the
strategies that all the others have chosen.
• When firms in an oligopoly individually choose
production to maximize profit, they produce a
quantity of output greater than the level
produced by a monopoly and less than the
level produced by competition.

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 The Equilibrium for an Oligopoly
• The oligopoly price is less than the monopoly price but
greater than the competitive price (which equals marginal
cost).
• Summary
– Possible outcome if oligopoly firms pursue their own self-
interests:
• Joint output is greater than the monopoly quantity but less than
the competitive industry quantity.
• Market prices are lower than monopoly price but greater than the
competitive price (which equals marginal cost).
• Total profits are less than the monopoly profit.

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Bagaimana Ukuran Oligopoli Berpengaruh Terhadap Output Pasar

• Bagaimana peningkatan jumlah penjual

berakibat terhadap harga dan kuantitas :
– The output effect: Karena harga berada di atas
marginal cost, maka menjual lebih banyak
pada harga tersebut akan meningkatkan
keuntungan.
– The price effect: Peningkatan produksi akan
meningkatkan jumlah barang yang dijual,
Raising production will increase the amount
sold, which will lower the price and the profit
per unit on all units sold.
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