Does market competition explain fairness?

2013 ◽  
Vol 36 (1) ◽  
pp. 87-88 ◽  
Author(s):  
Peter DeScioli

AbstractThe target article by Baumard et al. uses their previous model of bargaining with outside options to explain fairness and other features of human sociality. This theory implies that fairness judgments are determined by supply and demand but humans often perceive prices (divisions of surplus) in competitive markets to be unfair.

2019 ◽  
Author(s):  
Jeff Allen ◽  
Steven Farber

Accessibility is now a common way to measure the benefits provided by transportation–land use systems. Despite its widespread use, few measurement options allow for the comparison of accessibility across multiple urban systems, and most do not adequately control for market competition between demand‐side actors and supply‐side facilities in localized markets. In this article, we develop a measure of competitive access to destinations that can be used to accurately compare accessibility between regions. This measure stems from spatial interaction modeling and accounts for competition at both the supply and demand sides of analysis, regional differences in transportation networks and travel behavior, and any imbalance between the size of the population and the number of opportunities. We use this method to compute access to employment for Canada's eight largest cities to comparatively examine inequalities in accessibility, both within and between cities, and by travel mode.


2021 ◽  
Vol 0 (0) ◽  
pp. 0
Author(s):  
Qingfeng Meng ◽  
Wenjing Li ◽  
Zhen Li ◽  
Changzhi Wu

<p style='text-indent:20px;'>B2C online ride-hailing is to provide customers with anytime, anywhere and on-call ride services by professional vehicles and professional drivers. How to maintain good service quality and reasonable pricing under competition is of importance to a platform. In this paper, we will integrate pricing and service together to maximize the profit of a platform through Nash game theory. Specifically, we will establish the models for there scenarios: the demand market competition under decline of ride demand, the supply market competition under surge of ride demand, and the coexistence of demand and supply market competition for stable ride demand. Then, the Nash equilibriums are derived for the three models which are corresponding to minimize ride price, optimize quality of efforts and maximize profit. Our results uncover that the driver's incentive amount is conducive to the profit of both platform and the drivers for the case of demand market competition. The platforms and drivers achieve the highest profit under supply market competition, and the strategy through minimizing price and maximizing service can effectively adjust the balance between market supply and demand.</p>


2021 ◽  
Vol 13 ◽  
pp. 160-163
Author(s):  
Jiuding Li ◽  
Shuaiming Gao

With the development of computer technology and network technology, the era of digital economy has arrived, the Internet platform economy has flourished, and a number of Internet enterprises with certain influence have emerged at home and abroad. Among them, the large Internet enterprises use their own platform's advantageous position in data, traffic and algorithms to interdepend on and influence each other, thus leading to the price of commodities not only determined by market supply and demand but more influenced by the oligarchs through some tangible or intangible ways of price leadership. Internet platform vendors take a cut from both the supply and demand side, capturing excess profits in the hands of the platform to the detriment of the majority. Internet platforms are not a place outside the law and the platform economy should operate under good market rules and market competition, while the state should also amend its anti-monopoly laws in due course to meet the needs of the market at this stage.


2007 ◽  
Vol 8 (1) ◽  
pp. 7-42 ◽  
Author(s):  
JAMES T. HAMILTON

This paper explores the economic factors that influence news coverage and discusses the difficulties of determining the impact of news content on political outcomes. Evidence from the United States clearly shows how supply and demand concepts can be used to predict content in newspapers, television, and the Internet. To demonstrate how the concept of market-driven news extends beyond the US, I trace out hypotheses about how media content in many countries should vary depending on three factors in news markets: the motivations of media outlet owners, the technologies of information dissemination available, and the property rights that govern how information is created and conveyed. I offer three different types of analyses – the measurement of product differentiation, information search patterns, and consumption patterns – to show how these ideas about competition influencing content could be tested across countries. The paper briefly discusses the degree to which market competition affects content in three Asian countries (China, Thailand, and Japan) and concludes with a section on the difficulties of designing policies to improve the operation of media markets.


1988 ◽  
Vol 6 (1) ◽  
pp. 1-16 ◽  
Author(s):  
John Christman

The question I wish to take up in this paper is whether competitive markets, as mechanisms that initiate the distribution of scarce goods, allocate those goods in accordance with what participants in those markets deserve. I want to argue that in general people do not in fact deserve what they get from market interactions, when “what they get” is determined by the competitive forces coming to bear on the market (the laws of supply and demand). This more general claim is meant to apply to all participants in the market (workers and their wages as well as capitalists and their profits). However, my strategy here is to focus on the particular case of the role of entrepreneurs, as I will define them, and whether they deserve the profits they reap in a competitive capitalist market. In particular, I will argue that the claim that entrepreneurs deserve their profits, when spelled out precisely, is indeed not plausible. Generalizing from this claim, I want to suggest how moral desert is inappropriate as a justification of market shares whenever competition determines the magnitude of those shares.I should stress, though, the particularity of my central claim: it is that “(strictly speaking) entrepreneurs do not (strictly speaking) deserve their (strictly speaking) profits.” This is not to say that, for other reasons (for example, reasons of entitlement or utility), people should not receive the rewards doled out by a market. My claim is only that desert has nothing directly to do with it.I am deviating significantly here from the usual strategy for denying the relevance of desert claims to principles of distributive justice.


Author(s):  
Zeynep Or ◽  
Emeline Rococco ◽  
Mariama Touré ◽  
Julia Bonastre

Background: The implications of competition among hospitals on care quality have been the subject of considerable debate. On one hand, economic theory suggests that when prices are regulated, quality will be increased in competitive markets. On the other hand, hospital mergers have been justified by the need to exploit cost advantages, and by evidence that hospital volume and care quality are related. Methods: Based on patient-level data from two years (2005 and 2012) we track changes in market competition and treatment patterns in breast cancer surgery. We focus on technology adoption as a proxy of process quality and examine the likelihood of offering two innovative surgical procedures: immediate breast reconstruction (IBR), after mastectomy and sentinel lymph node biopsy (SLNB). We use an index of competition based on a multinomial logit model of hospital choice which is not subject to endogeneity bias, and estimate its impact on the propensity to receive IBR and SLNB by means of multilevel models taking into account both observable patient and hospital characteristics. Results: The likelihood of receiving these procedures is significantly higher in hospitals located in more competitive markets. Yet, hospital volume remains a significant indicator of quality, therefore benefits of competition appear to be sensitive to the estimates of the impact of volume on care process. In France, the centralisation policy, with minimum activity thresholds, have contributed to improving breast cancer treatment between 2005 and 2012. Conclusion: Finding the right balance between costs and benefits of market competition versus concentration of hospital care supply is complex. We find that close to monopolistic markets do not encourage innovation and quality in cancer treatment, but highly competitive markets where many hospitals have very low activity volumes are also problematic because hospital quality is positively linked to patient volume.


Author(s):  
Sergei N. Sil'vestrov ◽  
Vladimir P. Bauer ◽  
Vladimir V. Eremin ◽  
Natalia V. Lapenkova

The purpose of the article is to develop a model of digital transformation of an enterprise in the context of systemic economic theory. The relevance of the goal is determined by the large-scale transition of the world economy to digital functioning formats. Preliminary modeling of digital transformation will allow the enterprise to calculate the economic effect of its implementation, to identify changes in relations with its partners and competitors, the impact of these changes on the dynamics of the market value of resources and finished products. The objective of the article is to formulate a model that describes not only the digital transformation project itself, but also its relationship with the external environment of the enterprise, the processes of supply and sale of finished products. The article forms the hypothesis that the systemic economic theory allows you to create a model of digital transformation of the enterprise. This model has the following scientific novelty. 1. It substantiates the possibility and adequacy of the description of the relationships between the components of an economic tetrad (a complex of object, design, process and environmental systems) through a change in financial flows and indicators during the digital transformation of an enterprise. 2. The proposed model allows us to describe the impact of the digital transformation of the enterprise not only on its activities, but also on changes in the market environment of this enterprise, taking into account the changes in supply and demand for resources needed for the functioning of the transformed enterprise, as well as for the products it sells, resulting from the digital transformation of the enterprise. 3. Taking into account changes in the market environment surrounding the transformed enterprise allows integrating the mechanism of market competition into the economic tetrad. 4. The model of digital transformation of the enterprise allows you to explore the interactions of financial and economic processes that enhance and transmit the resulting effects of digital transformation along the vertical and horizontal of network space of economic tetrads. The proposed simulation will simplify the transition to digital transformation and the use of scenario analysis; increase the predictability of the results of digital transformation, reducing the risk of its negative consequences.


Author(s):  
Gautam Satheesh ◽  
M. K. Unnikrishnan ◽  
Abhishek Sharma

Abstract Introduction Considering limited global access to affordable insulin, we evaluated insulin access in public and private health sectors in Bengaluru, India. Methods Employing modified WHO/HAI methodology, we used mixed-methods analysis to study insulin access and factors influencing insulin supply and demand in Bengaluru in December 2017. We assessed insulin availability, price and affordability in a representative sample of 5 public-sector hospitals, 5 private-sector hospitals and 30 retail pharmacies. We obtained insulin price data from websites of government Jan Aushadhi scheme (JAS) and four online private-sector retail pharmacies. We interviewed wholesalers in April 2018 to understand insulin market dynamics. Results Mean availability of insulins on India’s 2015 Essential Medicine List was 66.7% in the public sector, lower than private-sector retail (76.1%) and hospital pharmacies (93.3%). Among private retailers, mean availability was higher among chain (96.7%) than independent pharmacies (68.3%). Non-Indian companies supplied 67.3% products in both sectors. 79.1% products were manufactured in India, of which 60% were marketed by non-Indian companies. In private retail pharmacies, median consumer prices of human insulin cartridges and pens were 2.5 and 3.6 times, respectively, that of human insulin vials. Analogues depending on delivery device were twice as expensive as human insulin. Human insulin vials were 18.3% less expensive in JAS pharmacies than private retail pharmacies. The lowest paid unskilled worker would pay 1.4 to 9.3 days’ wages for a month’s supply, depending on insulin type and health sector. Wholesaler interviews suggest that challenges constraining patient insulin access include limited market competition, physicians' preference for non-Indian insulins, and the ongoing transition from human to analogue insulin. Rising popularity of online and chain pharmacies may influence insulin access. Conclusion Insulin availability in Bengaluru’s public sector falls short of WHO’s 80% target. Insulin remains unaffordable in both private and public sectors. To improve insulin availability and affordability, government should streamline insulin procurement and supply chains at different levels, mandate biosimilar prescribing, educate physicians to pursue evidence-based prescribing, and empower pharmacists with brand substitution. Patients must be encouraged to shop around for lower prices from subsidized schemes like JAS. While non-Indian companies dominate Bengaluru’s insulin market, rising market competition from Indian companies may improve access.


Author(s):  
Yingzhen Cai ◽  
Lan Bai ◽  
Fan Jiang ◽  
Shi Yin

AbstractSharing logistics platform can effectively realize the sharing of idle logistics resources and maximize the utility of logistics resources utilization by publishing and matching the supply and demand information of logistics resource. For sharing logistics platform, subsidy strategy plays a significant role in winning market competition. Therefore, how to establish an effective subsidy scheme is a burning issue. By analyzing the problems in the transaction orders of drivers and consignor on the sharing logistics platform, this paper estimates the subsidy strategy on the following three aspects: (1) establish a dynamic model of freight supply and demand matching according to the freight cost and determine the impact of different subsidy policies on the platform usage; (2) evaluate the solution of different subsidy policies to the matching problem of vehicles and goods, and determine the optimal subsidy scheme based on the evaluation results; (3) establish the subsidy model based on platform maximum benefit and social welfare optimization and analyze a practical case of "Huochebang" (a Sharing logistics platform). The analysis results show that the model constructed in this paper can be well applied to the subsidy problem of sharing logistics platform and assist the platform to establish the most suitable subsidy policy to achieve the optimal economic benefits.


2012 ◽  
Vol 22 (2) ◽  
pp. 319-350 ◽  
Author(s):  
Thomas Wells ◽  
Johan Graafland

ABSTRACT:Whether or not capitalism is compatible with ethics is a long standing dispute. We take up an approach to virtue ethics inspired by Adam Smith and consider how market competition influences the virtues most associated with modern commercial society. Up to a point, competition nurtures and supports such virtues as prudence, temperance, civility, industriousness and honesty. But there are also various mechanisms by which competition can have deleterious effects on the institutions and incentives necessary for sustaining even these most commercially friendly of virtues. It is often supposed that if competitive markets are good, more competition must always be better. However, in the long run competition enhancing policies that neglect the nurturing and support of the bourgeois virtues may undermine the continued flourishing of modern commercial society.


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