The price formation is a process running off at the market for the determination of the market price. With the different types of market this process runs off differently.

Prices develop each mark, if buyers and salesmen close a contract over the property change of a property (commodity, service, demand etc.) to certain (monetary and others) conditions. Like that the course is the price money borrowed by securities, the interest the price for.

Polypol

The price formation on a polypolistischen free market takes place via the reciprocal effect from supply and demand. The price on a kompetitiven market oscillates itself in such a way that it adjusts supply and demand (market equilibrium). If the offer is larger than the demand, then the price sinks. At a deeper price are ready more Nachfrager to buy the product but less offerer ready to offer the property. The demand rises and the offer sinks. One calls the price, are equally large with which demand and supply, Gleichgewichtspreis.

The Polypolisten receives the price as date, it acts as Mengenanpasser. With a higher price a larger quantity is offered (entrance of new offerers into the market, expansion of production beyond the existing capacity border).

Monopoly

With removing number of the offerers and customer of a property also the price formation becomes more difficult and more unstable; at a university-lateral monopoly the offerer and/or the customer determines exclusively the price. The demand curve receives the monopolist as date. He will always select price/quantity combination on this demand curve, since he would produce an offer quantity surplus with a exceeding, when falling below a demand quantity surplus.

The profit maximum for the monopolist is the Cournot point (intersection of neighbouring costs and border proceeds). This lies below the proceeds maximum.

In a bilateral monopoly the selling price calculation is often arbitrary.

Comparison of the price formation monopoly and Polypol

Both mono as well as Polypolisten must consider the neighbouring costs curve with the market equilibrium. While the Polypolisten looks for the intersection with the demand curve, the monopolists reach the profit maximum with the cut with the border turnover function. There the Grenzumsatz under the demand curve is appropriate is higher to monopoly Mark the price with a smaller quantity. Thus theoretically a Polypolmarkt is more favorable for the Nachfrager.

This comparison is based on the following acceptance:

• the total demand curve of the Monopolmarkes is equal to that of the Polypolmarktes
• the Grenzkostenkuve of the monopolist is the aggregated Grenzkostenkuve of the Polypolisten

Both acceptance are unrealistic.

The demand can behave with monopoly markets differently, e.g. through evades on substitutes. Besides "“political"” reactions can occur, e.g. change over to Linux in place of Microsoft software.

Monopolists have cost advantages (e.g. purchase discount due to the size, manufacturing, fixed cost degression automated. Therefore is to be proceeded from a more favorable Grenzkostenkuve.

Oligopoly

With the oligopoly the profit of the reactions of the others depends.

The Kernproplem of the oligopoly theory is therefore the development of ralistic hypotheses over the reaction of the others. For Dyopole the following hypotheses were set up:

• Cournot hypothesis: The Dyopolisten operates operated independent quantity strategies
• The Stackelberg hypothesis: Servant counts on inelastic Verahltensweise of the other one. He determines the profit, which represents a maximum after effected, from it expected adjustment second.
• Camerlin Fellner hypothesis both Dyopolisten cooperate and and behave thus like a monopolist
• Theory of the GEC-broken demand curve: Competitors do not follow Preissenkungne immediately, with price increases take place a reaction
• Equilibrium area solution after Krelle

See also

• Price (economics)
• Price sales volume function

Articles in category "Price formation"

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