Part IV Analytic of the Concept of Dominance, 10 Single Dominance

2011 ◽  
Author(s):  
Nazzini Renato
Keyword(s):  
Social Welfare ◽  
Dynamic Model ◽  
Market Power ◽  
Market Failures ◽  
Barriers To Entry ◽  
Dominance Test ◽  
Buyer Power

This chapter discusses the concept of dominance. There are two models of dominance: a structuralist model that regards dominance as coextensive with substantial and durable market power, and a behavioural or dynamic model that regards dominance as the ability to harm competition. Under Article 102, dominance is the ability to harm competition to the detriment of long-term social welfare. It is, therefore, a quintessentially behavioural concept. This dynamic concept of dominance is consistent with the objective of Article 102, which is not to address market failures resulting from market power but to prohibit certain unilateral conduct that harms long-term social welfare. Having defined dominance, the chapter goes on to examine the three necessary elements of the dominance test: substantial and durable market power, the presence of dynamic barriers to entry, and the absence of countervailing buyer power.

Game and Information Theory in Modern Managerial Economics

2013 ◽  
pp. 128-154
Author(s):  
Esther Gal-Or
Keyword(s):  
Information Theory ◽  
Incomplete Information ◽  
Market Power ◽  
Entry Barriers ◽  
Market Failures ◽  
Short Term ◽  
Vertical Control ◽  
Managerial Economics

This chapter describes how methodologies developed in the field of game and information theory can assist in understanding the interaction of competitors in markets, and the study of managerial economics, in general. The chapter highlights, in particular, the role of incomplete information in generating market failures, and provides examples of mechanisms that can alleviate such failures. Some examples of topics addressed are: first- and second-mover advantages, long term strategic commitments versus short term tactical choices made by competitors, erection of entry barriers to secure market power, choices of product-mix, special pricing mechanisms to enhance profitability, and issues related to vertical control and the internal organization of the firm.

Changing Challenges in the Modernization of Nacional Financiera

2018 ◽  
Author(s):  
Juan Carlos Moreno-Brid ◽  
Esteban Pérez Caldentey ◽  
Laura Valdez
Keyword(s):  
Federal Government ◽  
Commercial Bank ◽  
Development Process ◽  
Institutional Transformation ◽  
Market Failures ◽  
Market Segments ◽  
Business Interests ◽  
Policy Bank ◽  
Preferential Access

NAFINSA was essential to Mexico’s development process. It served as the financial agent of the Federal Government and provided preferential access to long-term finance favouring selected business interests and groups. With the Washington Consensus, its tasks were reduced to correcting for market failures, becoming a complement to commercial banks, and focusing on attending the market segments falling outside the scope of commercial bank activity (notably SMEs). Although it appears as a successful story of institutional transformation, on closer inspection, NAFINSA has not been able to overcome key obstacles and its success in alleviating credit restrictions is very limited. NAFINSA must recover some of its functions, prerogatives, and responsibilities as a policy bank to become relevant in strengthening financial intermediation for capital formation.

scholarly journals Short-Run Needs and Long-Term Goals: A Dynamic Model of Thirst Management

2015 ◽  
Vol 34 (5) ◽  
pp. 702-721 ◽  
Author(s):  
Guofang Huang ◽  
Ahmed Khwaja ◽  
K. Sudhir
Keyword(s):  
Dynamic Model ◽  
Short Run

The potential of entry barriers in the context of digitalization

2021 ◽  
Vol 21 (1) ◽  
pp. 128-147
Author(s):  
Aleksey Zazdravnykh
Keyword(s):  
Big Data ◽  
Market Power ◽  
Network Effects ◽  
Economies Of Scale ◽  
Digital Transformation ◽  
Entry Barriers ◽  
Barriers To Entry ◽  
Significant Growth ◽  
Digital Infrastructure ◽  
Market Operation

The article analyzes the practical aspects of the functioning of some barriers to entry in the era of digital transformation of industry markets. It is noted that under the influence of digitalization processes, both positive changes in the mechanism of market operation are recorded, as well as a number of negative circumstances that have become a serious challenge for antitrust agencies. Control of big data, initial investment in digital infrastructure, and broad technological capabilities of digital blocking of users, against the background of powerful network effects and pronounced economies of scale, carry the potential for significant growth in the market power of individual firms. The article substantiates that such trends theoretically pose a significant threat to competition, and can form new types of entry barriers. At the same time, practical arguments are presented that indicate the ambiguity of this position.

A CONDITIONAL EQUITY RISK MODEL FOR REGULATORY ASSESSMENT

2018 ◽  
Vol 49 (1) ◽  
pp. 217-242
Author(s):  
A. Floryszczak ◽  
J. Lévy Véhel ◽  
M. Majri
Keyword(s):  
Risk Assessment ◽  
Risk Model ◽  
Capital Requirements ◽  
Market Failures ◽  
Equity Prices ◽  
Equity Risk ◽  
Solvency Capital ◽  
Functional Differential ◽  
Stochastic Functional

AbstractWe define and study in this work a simple model designed for managing long-term market risk of financial institutions with long-term commitments. It allows the assessment of solvency capital requirements and the allocation of risk budgets. This model allows one to avoid over-assessment of solvency capital requirements specifically after market disruptions. It relies on a dampener component in charge of refining risk assessment after market failures. Rather than aiming at a realistic and thus complex description of equity prices movements, this model concentrates on minimal features enabling accurate computation of capital requirements. It is defined both in a discrete and continuous fashion. In the latter case, we prove the existence, uniqueness and stability of the solution of the stochastic functional differential equation that specifies the model. One difficulty is that the proposed underlying stochastic process has neither stationary nor independent increments. We are however able to perform statistical analyses in view of its validation. Numerical experiments show that our model outperforms more elaborate ones of common use as far as medium-term (between 6 months and 5 years) risk assessment is concerned.

scholarly journals U.S. Healthcare: A Story of Rising Market Power, Barriers to Entry, and Supply Constraints

2021 ◽  
Vol 2021 (180) ◽  
pp. 1
Author(s):  
Anke Weber ◽  
Mico Mrkaic ◽  
Li Lin
Keyword(s):  
Market Power ◽  
Barriers To Entry

scholarly journals Efficiency Problems in the System of Key National Indicators

2012 ◽  
pp. 168-171
Author(s):  
E. A. Brendeleva
Keyword(s):  
Economic Development ◽  
Social Welfare ◽  
Development Strategy ◽  
The State ◽  
Institutional Characteristics ◽  
National Economies ◽  
The Way

The article talks about the key national indicators characterizing economic development, as well as the problems associated with the aims set in the framework of these indicators. The paper also looks at the possible changes in the existing system to asses the state of national economies and social welfare, as well as in the way institutional characteristics of a particular country are considered in this system, with the final aim of deciding on the states’ long term development strategy.

scholarly journals Rights Of Disabilities To Education, Occupation, Health, Social Welfare, And Accessibility

2020 ◽  
Vol 5 (1) ◽  
pp. 48-54
Author(s):  
YOPI HARWINANDA ARDESA
Keyword(s):  
Social Welfare ◽  
Cross Section ◽  
People With Disabilities ◽  
Right To Health ◽  
Right To Education ◽  
Section Design ◽  
The Subject

Background: People with disabilities are those with physical or mental limitations in long term. People with disabilities have some rights they deserve such as rights to education, occupation, health, social welfare, and accessibility. Method and Subject: This research was conducted on December 2019, in Colomadu Sub District using questionnaire with cross-section design. The subject used consisted of 23 quadriplegic persons. Result: Out of 23 quadriplegic persons, the result of analysis showed significant score of 0.236 between people with disabilities and right to education, of 0.167 between people with disabilities and right to occupation, of 0.313 between people with disabilities and right to health, of 0.150 between people with disabilities and right to social welfare, and of 0.762 between people with disabilities and right to accessibility, with p > 0.05.  Conclusion: The rights of people with disabilities (disability people) have not been fulfilled yet in Colomadu Sub District.

Sign in / Sign up

Export Citation Format

Share Document