Market Investigations

Mapping Intimacies ◽

10.1017/9781009072007 ◽

2021 ◽

Keyword(s):

Market Power ◽

Network Effects ◽

Switching Costs ◽

Scale Economies ◽

Economic Sectors ◽

Dominant Firms ◽

Competition Laws ◽

Laws And Regulations

In many economic sectors – the digital industries being first and foremost – the market power of dominant firms has been steadily increasing and is rarely challenged by competitors. Existing competition laws and regulations have been unable to make markets more contestable. The book argues that a new competition tool is needed: market investigations. This tool allows authorities to intervene in markets which do not function as they should, due to market features such as network effects, scale economies, switching costs, and behavioural biases. The book explains the role of market investigations, assesses their use in the few jurisdictions where they exist, and discusses how they should be designed. In so doing, it provides an invaluable and timely instrument to both practitioners and academics.

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Anti-Competitive Practices In The Tourism Industry: The Case Of Small Economies

Journal of Business & Economics Research (JBER) ◽

10.19030/jber.v4i10.2702 ◽

2011 ◽

Vol 4 (10) ◽

Author(s):

A.E. Rodriguez ◽

James Murdy

Keyword(s):

Market Power ◽

Developing Economies ◽

Consumer Welfare ◽

Tourism Industry ◽

Small Economies ◽

Tourism Sector ◽

Competition Laws ◽

Hotel Chains ◽

National Economies

Who benefits from the proliferation of ecolodges, beachfront resorts, safari parks, river cruises, forest forays and other similar and increasingly popular ventures popping up in developing economies across the world? Critics hold that multinational hotel chains, influential tour operators and foreign interests sometimes in association with powerful domestic groups often engage in anticompetitive practices at the expense of local communities, domestic workers and other stakeholders where the tourism activities take place. In this paper, we examine the possibility of market power abuses in the tourism industry in small economies or small national economies.  Many of these small economies have recently inaugurated antitrust enforcement agencies charged with curtailing market power abuses and other anticompetitive practices.  We also examine how effective these agencies are likely to be in challenging the powerful tourism industry. Succinctly, we conclude that monopsonistic practices may arise in the tourism sector of small economies. But we argue that domestic competition agencies are not suited to challenge monopsony for various reasons including a lack of political will.  We also analyze the plausible cartelization role of regional marketing boards.  Regional marketing boards are collaborative efforts by groups of countries.  Because it is entrusted with cross jurisdictional enforcement of competition laws, a “regional” agency with jurisdiction in several countries across a region may be more likely to successfully confront monopsony problems.  However, we conclude that a regional enforcement agency is equally unlikely to successfully challenged cross-border anticompetitive practices because it is not likely to challenge the impairment of consumer welfare of foreign nationals.

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Sustainable Use of the Environment, Planetary Boundaries and Market Power

Sustainability ◽

10.3390/su13020949 ◽

2021 ◽

Vol 13 (2) ◽

pp. 949

Author(s):

Edward B. Barbier ◽

Joanne C. Burgess

Keyword(s):

Natural Resources ◽

Market Power ◽

Environmental Sustainability ◽

Sustainable Use ◽

Planetary Boundaries ◽

Economic Sectors ◽

Resource Rents ◽

Dominant Firms ◽

Operating Space ◽

Safe Operating

Many of the environment and natural resources that constitute key “safe operating spaces”, as designated by planetary boundaries, are being exploited by a handful of large firms with considerable market share. In this paper, we discuss how the environment and natural resources that occur within a safe operating space can be treated as an exploitable finite stock. We use an optimal depletion model to show how the extraction of these exhaustible assets can be managed optimally, and allow for adjustment in price paths due to technological innovation and environmental externalities. Given the growing market concentration and monopoly power in the key economic sectors that exploit the environment and resources that constitute many safe operating spaces, we then explore how monopoly conditions can alter the extraction and price path of the environmental assets over time compared to that under competitive market conditions. We show that the monopoly may be compatible with more sustainable use, by extending the life of the exploitable, depletable stock, at the expense of firms capturing excessive resource rents from exploitation. This tradeoff means that any policies implemented to tax the excessive monopoly rents need to be designed without compromising the sustainable use of the environment. The tax revenue raised can be channeled into protecting or regenerating natural assets that are essential for global environmental sustainability. If investment in regeneration efforts is sufficiently substantial, or if the wider social and environmental values associated with the exhaustible assets are taken into account, then the safe operating space may be conserved indefinitely. Such policy challenges will become increasingly important as dominant firms exert market power over the planet’s remaining environment and resources that constitute key “safe operating spaces”, as designated by planetary boundaries.

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The Role of (Personal) Network Effects and Switching Costs in Determining Mobile Users’ Choice

Journal of Information Technology ◽

10.1057/jit.2008.35 ◽

2009 ◽

Vol 24 (2) ◽

pp. 160-171 ◽

Cited By ~ 30

Author(s):

Juan Pablo Maicas ◽

Yolanda Polo ◽

Francisco Javier Sese

Keyword(s):

Social Network ◽

Mobile Phone ◽

Network Effects ◽

Switching Costs ◽

Firm Strategy ◽

Telecommunications Industry ◽

Switching Behavior ◽

Mobile Users ◽

Personal Network

Network effects and switching costs are two major economic forces in information technology industries. Although the consequences of these mechanisms on competition and firm strategy have been well documented in the literature, research on their impact on customer behavior has received less attention. In this study, the authors investigate the role of personal network effects and switching costs in explaining customer choice in the Spanish mobile telecommunications industry. Personal network effects are present when an individual user's utility increases more when some individuals adopt (social network) than when others do. Switching costs refer to costs associated with the process of switching from one provider to another. In addition, this paper studies the drivers of personal network effects and switching behavior. The results reveal that personal network effects and switching costs play a key role in determining mobile users’ choice: the probability that a customer selects a mobile phone company increases with the number of members of her social network already subscribed to that firm, and switching costs are significantly present in the mobile phone market making switching providers costly. Concerning the drivers of both mechanisms, the authors find that relationship characteristics (length, depth and breadth) and demographics differently affect personal network effects perceptions and consumer switching behavior. Implications for decision makers are discussed.

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PERLINDUNGAN HUKUM TERHADAP PELAKU UMKM KULINER DI KABUPATEN BEKASI

Prosiding SENAPENMAS ◽

10.24912/psenapenmas.v0i0.15177 ◽

2021 ◽

pp. 1271

Author(s):

Bella Ftria Ariyanti ◽

Ranissa Sekar Elaies ◽

Allya Putri Yuliyani ◽

Jeane Netlje Sally

Keyword(s):

Secondary Data ◽

Market Place ◽

Economic Sectors ◽

Deductive Logic ◽

Online Business ◽

The Government ◽

Role Of The Government ◽

The Impact ◽

Laws And Regulations

Looking at the various current conditions of the country caused by the COVID-19 pandemic, the impact on economic sectors in Indonesia became unstable. But thanks to the support of MSMEs and the government, the economy in Indonesia can soon recover. Efforts made by the government with various programs for MSMEs, especially in Bekasi Regency, which have innovated related to changes in people's behavior due to COVID-19, related to changes in people/consumers' behavior in buying and selling online, business actors have utilized technology digitally. Therefore, social media and market place become a solution to make it easier for MSMEs to get wider marketing access to make it easier for businesses to reach consumers/buyers globally. In compiling this article, the author first researched to obtain information or data after this article is the result of normative legal research whose implementation is focused on the use of secondary data by using a qualitative paradigm approach of management, and data collection is done qualitatively using deductive logic where the laws and regulations are placed as major premises and facts are placed as the premise of the s minor (Soerjono S, 2007:52). So that this method is more directed to the proof of a theory that already exists. This research also makes a comparison of what can be done to get the most appropriate solution while through a secondary approach researchers refer to laws and regulations, papers, and articles to find out the information that already exists with related problems. This aims to find out the role of the government in protecting MSMEs during the pandemic and how MSMEs in the Bekasi Regency innovate to survive amid the current pandemic. Melihat dari berbagai kondisi Tanah Air saat ini yang diakibatkan oleh pandemi COVID-19 sehingga berdampak pada sektor-sektor perekonomian di Indonesia menjadi tidak stabil. Namun berkat dukungan UMKM dan pemerintah, perekonomian di Indonesia dapat segera pulih kembali. Upaya yang dilakukan pemerintah dengan berbagai program untuk pelaku UMKM khususnya di Kabupaten Bekasi yang telah melakukan inovasi terkait perubahan perilaku masyarakat akibat COVID-19, terkait perubahan perilaku masyarakat/konsumen dalam melakukan jual-beli secara online para pelaku usaha telah memanfaatkan teknologi secara digital. Oleh karena itu Media sosial dan market place menjadi sebuah solusi untuk mempermudah pelaku UMKM mendapatkan akses pemasaran yang lebih luas agar memudahkan para pelaku usaha untuk menjangkau para konsumen/pembeli secara global. Dalam menyusun artikel ini penulis terlebih dahulu melakukan penelitian untuk mendapatkan informasi atau data sehigga artikel ini adalah hasil dari penelitian hukum normative yang pelaksanaannya difokuskan pada penggunaan bersifat data sekunder dengan menggunakan pendekatan paradigma kualitatif pengolaan dan pengumpulan data dilakukan secara kualitatif dengan menggunakan logika deduktif dimana peraturan perundang-undangan ditempatkan sebagai premis mayor dan fakta-fakta ditempatkan sebagai premis minor . Sehingga metode ini sifatnya lebih mengarah kepada pembuktian atas sebuah teori yang telah ada. Penelitian ini juga menjadikan perbandingan tentang apa yang dapat dilakukan untuk mendapatkan sebuah solusi paling tepat sedangkan melalui pendekatan sekunder peneliti mengacu pada peraturan perundang-undangan, makalah, serta artikel-artikel untuk mengetahui informasi yang telah ada dengan masalah yang terkait.. Hal ini bertujuan untuk mengetahui apa saja peran pemerintah dalam melindungi pelaku UMKM selama pandemi serta bagaimana pelaku UMKM di Kabupaten Bekasi melakukan inovasi agar bertahan di tengah pandemi saat ini.

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The Rise of Dominant Firms: The Role of Chance

Open Economics ◽

10.1515/openec-2019-0008 ◽

2019 ◽

Vol 2 (1) ◽

pp. 76-91

Author(s):

Atanu Saha ◽

Arthur Havenner ◽

Sonya Rauschenbach

Keyword(s):

Production Cost ◽

Demand Uncertainty ◽

Network Effects ◽

Economies Of Scale ◽

Natural Consequence ◽

Competitive Industry ◽

Dominant Firms ◽

Simulation Results ◽

Inherent Advantage

AbstractThe principal explanations in the existing economics literature for the formation of concentrated markets are intellectual property-related entry barriers, economies of scale, and network effects. In each of these explanations, a few firms have an inherent advantage, allowing them to maintain their dominance. Our study’s objective is to show that even when all firms are equally situated, an industry can evolve from a competitive to an oligopolistic structure purely as a result of random chance. We create a stylized model where firms are identical at inception, with none having any competitive advantage. In each period, a firm’s profit is random with zero mean. The randomness of profits is hypothesized to stem from demand uncertainty and production cost fluctuations. Simulation results show that, solely as a result of chance, a competitive industry transitions to a market structure where only a handful dominate. The antitrust implications of our paper pertain to the causes of oligopoly formation. Notwithstanding that in some cases oligopolies can arise as a result of anticompetitive behavior of firms, we show that market concentration can also occur as a benign, natural consequence of evolution of an industry characterized by firms with uncertain profits.

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The Role of Entrepreneurship in Local Economic Growth: Example of Gaziantep

International Conference on Eurasian Economies 2012 ◽

10.36880/c03.00487 ◽

2012 ◽

Author(s):

Mehmet Vahit Eren ◽

Erdinç Tutar ◽

Filiz Tutar ◽

Çisil Erkan

Keyword(s):

Swot Analysis ◽

Vital Role ◽

Local Economy ◽

Government Policies ◽

Optimum Level ◽

Economic Sectors ◽

Local Economies ◽

The Status ◽

Financial Growth

In order to avoid social inequality of opportunity and improvement of local economies have become government policies in Turkey, as it is in other countries around the world. Incentives, regional development agencies, techno parks and also local entrepreneurs play crucial role in the improvement process of local economies. The increasing rivalry and globalization concept necessitate entrepreneurs to take more risks, to reach innovations to seize opportunities in optimum level. Entrepreneurship is a motor vessel in financial growth and in development, and entrepreneurship is also the source of innovation and creativity. In this regard, the more entrepreneurship develops in a country, the higher level of welfare possesses the chance to advance. The purpose of this report, in which it has been aimed to reveal vital role of entrepreneurship in the progress of local economies, is emphasizing the status of entrepreneurship that transformed Gaziantep’s socio-economic level of development into its present position. Thus with this aim a SWOT analysis, in terms of Gaziantep’s economic entrepreneurship has been carried out. Positive contributions of Gaziantep’s immensely developed industry, facilitation of local innovative entrepreneurs’ involvement in various local economic sectors and in accordance channeling immigration into deployment in local economy have been observed in this study. Significantly it has been observed that plenitude of “opportunist entrepreneurship” or in other words “the entrepreneurs with strategic growth plans” in this region contributed local economy positively.

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KEGAGALAN PRIVATISASI BUMN DI ERA REZIM ORDE BARU DALAM PERSPEKTIF EKONOMI POLITIK

Wacana Publik ◽

10.37295/wp.v12i02.16 ◽

2019 ◽

Vol 12 (02) ◽

Author(s):

Syamsul Ma'arif

Keyword(s):

Market Economy ◽

Free Market ◽

Dominant Role ◽

The State ◽

Early Years ◽

New Order ◽

Free Market Economy ◽

Economic Sectors ◽

Role Of The State

After had being carried out nationalization and hostility against west countries, the New Order regime made important decision to change Indonesia economic direction from etatism system to free market economy. A set of policies were taken in order private sector could play major role in economic. However, when another economic sectors were reformed substantially, effords to reform the State Owned Enterprises had failed. The State Owned Enterprise, in fact, remained to play dominant role like early years of guided democracy era. Role of the State Owned Enterprises was more and more powerfull). The main problem of reforms finally lied on reality that vested interest of bureaucrats (civil or military) was so large that could’nt been overcome.

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