Five Models Of Imperfect Competition

Economics outcome

Market failure means market mechanism can not fully play the role of the resources have not been effectively configured lack of efficiency, not to maximize the benefits, the government must intervene(Mattithiah, 2005).

For example, the market in accordance with the elements of each person have (such as labor, capital, human resources) to give income and distribution, reflects the phenomenon of unfair income distribution leading to polarization and leading to the rich richer and the poor poorer as the "Matthew Effect"(Mattithiah, 2005). Public goods refer to those satisfy the public needs from social perspective, which generally contain who distinct characteristics, non-competitive and non-exclusive. Consumer consumption

In economic theory, imperfect competition is a type of market structure showing some but not all features of competitive markets.

Sheffrin and Steven (2003) provided a well accepted classification of the forms of imperfect competition, which mainly includes five models: Oligopoly, in which there are few sellers of a product. Monopolistic competition, in which there are many sellers producing highly differentiated products. On the other hand, Monopoly, Monopsony, Oligopsony means where there are many buyers but only one seller, where there are many sellers but one buyer, where there are many sellers but few buyers.

For example, oligopoly competition, A handful of manufacturers, such as PetroChina Co Ltd (China National Petroleum Corporation) and Sinopec Group market organization controlling the entire oil market. This is a kind of market structure between complete competition and complete

On the one hand, direct taxes include Income tax and capital gains tax etc. On the other hand, indirect tax including value-added tax and consumption tax etc.

Such as welfare policy is Children and Young Persons Act 1908 introduced a set of regulations that became known as the Children's Charter. And it is advantage are increase the number of universality and students and development the high level education. On the other hand, it is disadvantage are low production of labor and poor service, Increase the burden in government expenditure. British social welfare system has been very perfect, the development of society has played a positive role in promoting. But there is no absolutely perfect system in the world, and the welfare system in Britain has its drawbacks.

For example, the central government funding (1993 - year fiscal year 1994 to 97 billion 400 million pounds, accounting for 39.8% of total governmental spending) public health, social insurance and other welfare system to effectively reduce, Welsh, Scotland, especially the Northern Ireland and England gap. This is a good way from the Welfare