Bacolod, Ilyn

Manuel, Paula
Bianca
Mufan, Marinel
Sabturani, Sharima
Yasin, Johana

Monopolistic competition includes an
element of monopoly and an element of
competition.

Interaction is not strategic in monopolistic
completion, actions of one physician, such as
a price change, affect demand for other
physicians.

Monopolistic Competition is a market
structure

Price discrimination or price
differentiation is a pricing strategy

Firms are price makers


The most common case of price
discrimination is that of physicians. A
doctor who can perform 80 treatments
in a week and charges 300php for each
treatment is fully employed by attending
to 30 patients and makes 2400php a
week.
The largest Philippine drug-
maker, Unilab, started selling in
2009 the generic version of the
anti-cholesterol drug
"Atorvastatin Calcium" under
the brand Avamax.

Large Number of Firms

Each firm has only a small market share

Each firm is sensitive to the average
market price.

Competing on Quality, Price, and
Marketing
Product differentiation enables firms to compete
in three areas.
Product Differentiation
Firms in monopolistic competition practice
product differentiation.
Entry and Exit
There are no barriers to entry in monopolistic
competition.

Monopolistic competitions are
also common in Philippines.

First, hospital competes on basis of
quality attributes for the physician.

Second, physician competes on the
basis of price and quality attributes
for the patient.

We can cope up on this competition
by simply choosing the quality and
quantity of their products.

PHYSICIANS TRADITIONALLY HAVE BEEN
relatively independent of hospitals and
have used them as workshops in which
to carry out their professional services.

Further, in some sites, including Boston,
Cleveland, and Little Rock, hospitals and
physicians were both worried about
shortages of physicians in important
specialties and described a joint interest
in attracting more physicians to the
market.
-Monopolistic Competition
-Characteristics of Monopolistic Market
-Price Discrimination is present in the case of
Physicians
Physicians exert a type of monopolistic power
because of the existing price discrimination.
Information shortage and a little basis in
reality of health insurers result to price
discrimination and so with monopolistic
competition.

http://books.google.com.ph/books?id=jcpmEqUG9qcC&pg=PA129&dq=int
eraction+between+doctors+and+hospitals+in+monopolistically+competitiv
e+markets&hl=en&sa=X&ei=K9f1UpWpHev6iQfE84CYCg&ved=0CC4Q6AEwA
Q#v=onepage&q=interaction%20between%20doctors%20and%20hospitals%2
0in%20monopolistically%20competitive%20markets&f=false
http://answers.yahoo.com/question/index?qid=20090805004142AA181Su
http://books.google.com.ph/books?id=HPAcajAC2QUC&pg=PA477&lpg=PA
477&dq=Interaction+between+doctors+and+hospitals+in+monopolistically
+competitive+markets&source=bl&ots=5wAZSkV6mp&sig=MC5eSGCAq2ed
bKXRIvarnw3aYu8&hl=en&sa=X&ei=m8j1UuSyGOihiAfv7oBA&ved=0CCkQ6A
EwAQ#v=onepage&q=Interaction%20between%20doctors%20and%20hospita
ls%20in%20monopolistically%20competitive%20markets&f=false
http://www.econ.uiuc.edu/~seppala/econ102/lect15.pdf
http://www.reference.com/motif/society/example-of-monopolistic-
competition
http://mises.org/humanaction/chap16sec10.asp
http://www.investopedia.com/terms/m/monopolisticmarket.asp