What drives effective competition in the airline industry? An empirical model of city-pair market concentration

2018 ◽  
Vol 63 ◽  
pp. 165-175 ◽  
Author(s):  
Marcus V.R. Oliveira ◽  
Alessandro V.M. Oliveira
2019 ◽  
Vol 7 (3) ◽  
pp. 352-364
Author(s):  
Thembalethu Buthelezi ◽  
Thando Mtani ◽  
Liberty Mncube

Abstract Competitive markets can benefit consumers, workers, entrepreneurs, small businesses, and the economy more generally but several indicators suggest the persistence of high levels of market concentration in many of South Africa’s economic sectors. The causes underlying the high levels of concentration and corresponding market power are not clear. This article uses recent data from notified mergers to show the extent of the static level of market concentration (measured using the Herfindahl–Hirschman index). This article argues that consumers and workers would benefit from additional actions to promote effective competition and inclusion in markets.


2016 ◽  
Vol 14 (3) ◽  
Author(s):  
Frank Maier-Rigaud ◽  
Ulrich Schwalbe ◽  
Felix Forster

AbstractThis article focusses on the non-coordinated effects of minority shareholdings in oligopolistic markets. It is demonstrated that minority shareholdings even when they fall below the usual thresholds can lead to a significant impediment of effective competition (SIEC) on a purely non-coordinated basis. This is particularly likely in a market with differentiated products, when a firm partially acquires shareholdings in its closest competitor and when the next best alternative products are only weak substitutes.


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