scholarly journals Measuring the Intensity of Competition in the Japanese Beef Market

2004 ◽  
Vol 36 (1) ◽  
pp. 113-121 ◽  
Author(s):  
Michael R. Reed ◽  
Sayed H. Saghaian
Keyword(s):  
New Zealand ◽  
Market Power ◽  
Marginal Cost ◽  
Demand Curve ◽  
Market Demand ◽  
Demand Model ◽  
Market Segments ◽  
Residual Demand ◽  
Intensity Of Competition ◽  
Beef Market

A residual demand model for beef exports to Japan is specified and estimated. The objective is to estimate the extent of market power. It is assumed that each exporting country faces a downward-sloping residual demand curve, which reflects the market demand minus the supplies of competitors, and that exporters maximize profit through their output decisions. The analysis is disaggregated by beef cut and form to capture the variation by beef market segments. The results indicate that the highest markup of price over marginal cost belongs to U.S. frozen ribs, the only indication of market power by U.S. exporters. Canada is found to have limited market power, whereas Australia and New Zealand enjoy some market power, including five chilled beef categories.

scholarly journals An Empirical Research on Marketing Strategies of Different Risk Preference Merchant

2018 ◽  
Vol 2018 ◽  
pp. 1-11 ◽  
Author(s):  
Quan Chen ◽  
Jiangtao Wang ◽  
Jianjun Yu ◽  
Sang-Bing Tsai
Keyword(s):  
Market Power ◽  
Forecast Accuracy ◽  
Risk Preference ◽  
Risk Averse ◽  
Market Demand ◽  
Market Uncertainty ◽  
Demand Model ◽  
Purchase Cost ◽  
Limited Life ◽  
Small Market

Holiday merchandise has unique demand characteristics, unofficial start data, and a limited life cycle. In an intensely competitive market, individual merchants are able to get more sales opportunities if they display their products earlier. In this study, a time-variant variance and time-variant expected market demand model are introduced to investigate the order strategies that are used by risk-averse holiday merchants. Our results show that risk preference, market uncertainty, and market power have a significant effect on the merchant’s market strategies. Risk-averse merchants prefer to enhance forecast accuracy rather than using an early-display advantage. They can even give up their early-display advantage if they are faced with increased market uncertainty and small market power. Compared with the fixed purchase cost, the time-sensitive purchase cost can stimulate the merchant to purchase in advance, but this can decrease the merchant’s profit. Consequently, risk-averse merchants always display their merchandise later, decrease the order quantity, and, finally, miss the market opportunity.

A Demand Model for Mobile Data Traffic in the 5G Era

2018 ◽  
pp. 21-43
Author(s):  
Michail Katsigiannis
Keyword(s):  
Marginal Cost ◽  
Network Performance ◽  
Market Price ◽  
Data Rate ◽  
Market Demand ◽  
Data Traffic ◽  
Demand Model ◽  
Mobile Data ◽  
Threefold Increase ◽  
High Level

This chapter examines how to estimate and forecast the market demand of mobile data traffic in the 5G era. The research objective is to develop a demand model for forecasting the market price and quantity of traffic in the Finnish mobile data communications market for the period between 2016 and 2020. The market price of traffic unit (GB/month), quantity, revenue, and profits are empirically estimated and forecast. The results show that the improvements of network performance, reflected by the user experienced data rate, cause a drop in the price from 0.8 to 0.27 € per GB/month between 2016 and 2020 (tenfold traffic growth). Also, a more than threefold increase is shown in mobile data revenues, whereas the profitability remains at a high level for the minimum marginal cost of 0.08 €.

scholarly journals Is there a market power in the Philippine Rice Industry?

2020 ◽  
pp. 97-112
Author(s):  
Maria Hazel Bellezas ◽  
Jose Yorobe ◽  
lsabelita Paduayon ◽  
Prudenciano Gordoncillo ◽  
Antonio Alcantara
Keyword(s):  
Market Power ◽  
Demand Curve ◽  
Secondary Data ◽  
Stabilization Policy ◽  
Milled Rice ◽  
Elasticity Of Demand ◽  
Market Inefficiency ◽  
Time Series Approach ◽  
Structural Econometric Model ◽  
Structural Econometric

Rice, as a staple food for the Filipinos, is widely studied from production to consumption. However, observations of the National Food Authority domestic procurement and price stabilization policy, as well as results of the marketing and market-related studies, still reveal some gaps which call forth for an in-depth investigation and analysis. One ofthese is the possible presence ofmarket power, a market inefficiency in rice. Hence, this study aimed to ascertain the presence of market power in the Philippine rice industry. Secondary data published by the Philippine Statistics Authority from 1990 to 2015 were utilized. A structural econometric model using a time series approach was used in estimating the presence of market power. Results revealed the presence of market power in non-major rice-producing regions for well-milled and regular-milled rice in major rice-producing areas. The more the demand curve becomes inelastic the more the market power becomes apparent. The price elasticity of demand in the non-major rice-producing regions is -0.63 for both well-milled and regular-milled rice and -0.83 and -0.59, respectively, in the major rice producing areas. To minimize, if not solve market power, a substitute staple for rice may be introduced, programs/policies that will encourage more palay traders may be implemented, and farmers may be trained to operate like industry clusters.

scholarly journals Are Price-Cost Markups Rising in the United States? A Discussion of the Evidence

2019 ◽  
Vol 33 (3) ◽  
pp. 3-22 ◽  
Author(s):  
Susanto Basu
Keyword(s):  
United States ◽  
Market Power ◽  
Marginal Cost ◽  
Cost Minimization ◽  
National Income ◽  
The United States ◽  
Aggregate Data ◽  
The Past ◽  
Labor's Share

A number of recent papers have argued that US firms exert increasing market power, as measured by their markups of price over marginal cost. I review three of the main approaches to estimating economy-wide markups and show that all are based on the hypothesis of firm cost minimization. Yet different assumptions and methods of implementation lead to quite different conclusions regarding the levels and trends of markups. I survey the literature critically and argue that some of the startling findings of steeply rising markups are difficult to reconcile with other evidence and with aggregate data. Existing methods cannot determine whether markups have been stable or whether they have risen modestly over the past several decades. Even relatively small increases in markups are consistent with significant changes in aggregate outcomes, such as the observed decline in labor’s share of national income.

Strategic Behavior in Whiskey Distilling, 1887–1895

2002 ◽  
Vol 62 (4) ◽  
pp. 999-1023 ◽  
Author(s):  
Karen Clay ◽  
Werner Troesken
Keyword(s):  
Market Structure ◽  
Marginal Cost ◽  
Strategic Behavior ◽  
Demand Curve ◽  
State Level ◽  
Antitrust Enforcement ◽  
Exclusive Dealing ◽  
Firm Level ◽  
Unique Dataset

This article shows that the Whiskey Trust used exclusive dealing and unusually low prices to deter entry and competition. Evidence of this is based on a unique dataset that allows us to estimate a firm-level demand curve for the trust, and to construct direct estimates of marginal cost. This article also shows that the strategies employed by the trust failed to deter entry. Market structure and state-level antitrust enforcement account for the failure of these strategies.

scholarly journals Characterizing the Response of Commercial and Industrial Facilities to Dynamic Pricing Signals From the Utility

2010 ◽  
Author(s):  
Johanna L. Mathieu ◽  
Ashok J. Gadgil ◽  
Duncan S. Callaway ◽  
Phillip N. Price ◽  
Sila Kiliccote
Keyword(s):  
Dynamic Pricing ◽  
Electricity Demand ◽  
Significant Heterogeneity ◽  
Demand Model ◽  
Industrial Facilities ◽  
Dynamic Price ◽  
Price Signals ◽  
Residual Demand ◽  
System Operator ◽  
Peak Pricing

We describe a method to generate statistical models of electricity demand from Commercial and Industrial (C&I) facilities including their response to dynamic pricing signals. Models are built with historical electricity demand data. A facility model is the sum of a baseline demand model and a residual demand model; the latter quantifies deviations from the baseline model due to dynamic pricing signals from the utility. Three regression-based baseline computation methods were developed and analyzed. All methods performed similarly. To understand the diversity of facility responses to dynamic pricing signals, we have characterized the response of 44 C&I facilities participating in a Demand Response (DR) program using dynamic pricing in California (Pacific Gas & Electric’s Critical Peak Pricing Program). In most cases, facilities shed load during DR events but there is significant heterogeneity in facility responses. Modeling facility response to dynamic price signals is beneficial to the Independent System Operator for scheduling supply to meet demand, to the utility for improving dynamic pricing programs, and to the customer for minimizing energy costs.

A REGIONAL CONSUMER DEMAND MODEL FOR NEW ZEALAND*

1987 ◽  
Vol 27 (1) ◽  
pp. 103-118 ◽  
Author(s):  
David E. A. Giles ◽  
Peter Hampton
Keyword(s):  
New Zealand ◽  
Consumer Demand ◽  
Demand Model
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