Study Of Monopoly Trading Costs

Momopoly is the result of market competition.According to the traditional theory of the microeconomics, monopoly has the lowest efficiency of the resource allocation. It may threaten or restrain the unfettered competition of the market, which comes to the prevalent conclusion: monopoly is evil. So, to keep the free competition system, it is necessary to enforce antimonopoly ,to restrain the enterprise scale.As we know , enterprise can enlarge its scale through merger and acquisition, so to enlarge its market share . However , that will be restrained by the market administration , for the anticompetitive intents. Those cases and conflicts occur frequently. Meanwhile, the antitrust law is expected to come into existence this year, whether it can be just and fair attracts the most attention. Obviously, the theory it depends on should represent the objective economic world and give the correct analysis.However, as what the received microtheory reads, monopoly has the lowest efficiency, which is the analysis results based on the traditional assumed hypothesis. As this dissertation' s viewpoints, the traditional assumed hypotheses are not realistic any more, so the traditional conclusions of monopoly are somewhat biased, which needs a new theory to modify it, and reanalyze the monopoly together with the antitrust, so to represent the market objectively.In essence, monopoly is the form of internal trade-off which replaces the market transaction. This dissertation adopts the transaction cost approach of neoinstitutional economics, to study the relationship between market and monopoly. Transaction cost is the root cause to the replacement of internal trade-off and market transaction, what' s more, during this course, we try to find out whether it reduces the transaction cost and improves the trade-off efficiency, reduces the waste of resources and savecost.This dissertation analyses the assumed hypotheses first, then broadens and perfects them; next, to encircle the transaction, this dissertation analyses the vertical integration, transverse integration and mixed integration, which realizes the internal trade-off instead of market transaction. What' s more, it comes to the conclusion that it can save resources and improve the efficiency of allocation; In the end, as for the antitrust, this dissertation finds out that it shouldn' t be blind. If the market power comes into being through the transaction cost saving, and doesn' t disturb the market system, the market authority shouldn' t carry out the antitrust measures. On the contrary, what the antitrust aims at is those which disturbs the market system.