Week 3: Keep your business clean

Perfect completion: there is a competition to the point of marginal cost (price=marginal cost)

competition forces innovation (differentiate) , while cartelization let firm reduce risk.

while cartelization make high profits at expense of customers

Ban on Cartel (setting high prices jointly)

Merge Control

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 什么样的情况会促使Cartel 的形成？

1. 价格和销售量非常容易预估。

2. 市场非常好把控（技术，需求，成本）

3. 行业早前出现过Cartel

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Abuse Control

如何测算一家公司在市场是否存在霸权？

1. 产品角度： 测算价格弹性，产品交叉弹性。

2. market power: 测算市场集中度

HHI 指数 C=汇总（市场份额）^2   

HHI <1000, acceptable

1000

HHI>1800 highly concentrated