The Effects of Competition and Entry in Multi-sided Markets

2020 ◽  
Author(s):  
Guofu Tan ◽  
Junjie Zhou
Keyword(s):  
Price Competition ◽  
Consumer Surplus ◽  
Free Entry ◽  
Platform Competition ◽  
Equilibrium Pricing ◽  
The Social ◽  
Economic Forces ◽  
Pricing Formula

Abstract We study price competition and entry of platforms in multi-sided markets. Utilizing the simplicity of the equilibrium pricing formula in our setting with heterogeneity of customers’ membership benefits, we demonstrate that in the presence of externalities, the standard effects of competition can be reversed: as platform competition increases, prices, and platform profits can go up and consumer surplus can go down. We identify economic forces that jointly determine the social inefficiency of the free-entry equilibrium and provide conditions under which free entry is socially excessive as well as an example in which free entry is socially insufficient.

Les chefs de cabinets ministériels au Québec: la transition du gouvernement libéral au gouvernement péquiste (1976–1977)

1981 ◽  
Vol 14 (2) ◽  
pp. 309-335 ◽  
Author(s):  
Micheline Plasse
Keyword(s):  
Decision Making ◽  
Civil Service ◽  
The State ◽  
Comparative Perspective ◽  
Decision Making Process ◽  
The Social ◽  
Economic Forces ◽  
The Government

This article first presents a brief survey of the role and functions filled by the personal aide (chef de cabinet) of a minister in Quebec. The analysis continues, in a comparative perspective, by tracing a sociological and professional portrait of the Liberal“chefs de cabinet” in April 1976 and their successors in the pequiste government in July 1977.We then test the hypothesis that the cleavage between the government and the dominant economic forces has increased since November 15, 1976 as a result of the ideology articulated by the“chefs de cabinet” regarding the social and economic aims of the state. This hypothesis was confirmed.The hypothesis that the pequiste“chefs de cabinet” exercise a more pronounced influence on the decision-making process is also confirmed. Nevertheless, one cannot argue that the pequiste“chefs de cabinet” usurped the power of the legislators; their influence is more political than technocratic. The growing influence of the pequiste“chefs de cabinet” neverthelsss helps to accentuate the tensions and conflicts between the higher civil service and the ministerial aides.

scholarly journals Politics and Audit in Malaysia

2014 ◽  
Vol 4 (4) ◽  
pp. 29
Author(s):  
Azham Md. Ali
Keyword(s):  
Social Relations ◽  
Qualitative Data ◽  
Professional Activity ◽  
Secondary Source ◽  
The Social ◽  
Economic Forces ◽  
Political Economic ◽  
Source Materials ◽  
Study Format

This work investigates the role and contribution of external auditing as practised in Malaysian society during the forty year period from independence in 1957 to just before the onset of Asian Financial Crisis in 1997.  It applies the political economic theory introduced by Tinker (1980) and refined by Cooper & Sherer (1984), which emphasises the social relations aspects of professional activity rather than economic forces alone. In a case study format where qualitative data were gathered mainly from primary and secondary source materials, the study has found that the function of auditing in Malaysian society in most cases is devoid of any essence of mission; instead it is created, shaped and changed by the pressures which give rise to its development over time. The largely insignificant role that it serves is intertwined with the contexts in which it operates. 

scholarly journals Usefulness of the concept of social savings and consumer surplus in studies on the impact of innovation on economic growth

2018 ◽  
Vol 2 (4) ◽  
pp. 179
Author(s):  
Janusz Krzysztof Myszczyszyn
Keyword(s):  
Economic Growth ◽  
Design Research ◽  
Consumer Surplus ◽  
Demand Elasticity ◽  
High Price ◽  
Elasticity Of Demand ◽  
The Social ◽  
Alternative Good ◽  
Economic Thinking ◽  
The Impact

Aim: The main objective of the paper was to calculate social savings (and consumer surplus) of innovation on the example of railroads in Germany for 1985. The railways were among the most important innovations in the nineteenth century. Being aware of the limits of the social savings technique, the author included the concept of consumer surplus in his calculation Design / Research methods: For the purpose of the research, the author used the concept of social savings proposed by Robert Fogel and consumer surplus. Conclusions / findings: For the year 1895, social savings amounted to 2.82% (first equation) of GDP and 5.04% of GDP (second equation), taking into account elasticity of demand (-1,38), social savings amounted to 1.27% of GDP and 2.18% of GDP for Germany. The result thus elicited the author referred to the social savings from railroads as made available in literature and the author’s previous research. The author demonstrated that the social savings from the innovation were relatively small. Originality / value of the article: The results of research are useful for examining the impact of innovation, such as railroads, on the level of social savings. The paper fills the gap in the Polish economic thinking on the use of counterfactual methods. Implications of the research: The concept of social savings which takes into account demand elasticity can be applied successfully in evaluating the impact of (various) innovations on economic growth. Limitations of the research: The weakness of the method may be the lack of knowledge about the real level of elasticity of demand for innovation, as well as determining the level of prices of an alternative good, especially if the use of innovation at the initial stage of bringing it to the market involves a relatively high price.

Endogenous Timing in Vertically-Related Markets

2018 ◽  
Vol 18 (2) ◽  
Author(s):  
Hong-Ren Din ◽  
Chia-Hung Sun
Keyword(s):  
Social Welfare ◽  
Price Competition ◽  
Consumer Surplus ◽  
The Other ◽  
Endogenous Timing ◽  
Price Strategy ◽  
Quantity Competition ◽  
Sequential Game ◽  
Product Substitutability

Abstract This paper investigates the theory of endogenous timing by taking into account a vertically-related market where an integrated firm competes with a downstream firm. Contrary to the standard results in the literature, we find that both firms play a sequential game in quantity competition and play a simultaneous game in price competition. Under mixed quantity-price competition, the firm choosing a price strategy moves first and the other firm choosing a quantity strategy moves later in equilibrium. Given that the timing of choosing actions is determined endogenously, aggregate profit (consumer surplus) is higher (lower) under price competition than under quantity competition. Lastly, social welfare is higher under quantity competition than under price competition when the degree of product substitutability is relatively low.

STORE PROMOTION, MANUFACTURER COMPETITION AND WELFARE

2021 ◽  
pp. 1-18
Author(s):  
HAO WANG ◽  
XUNDONG YIN ◽  
ALICE Y. OUYANG
Keyword(s):  
Social Welfare ◽  
Consumer Preferences ◽  
Consumer Surplus ◽  
Weighted Average ◽  
Brand Name ◽  
Price Distortion ◽  
Online Platforms ◽  
Brand Competition ◽  
The Social ◽  
Partial Exclusion

This study evaluates the partial exclusion effects of store promotion. We find that a manufacturer with a better brand name has a higher willingness-to-pay for promotion services offered by retail stores or online platforms. The promotion results in higher sales-weighted average prices (wholesale and retail) and a larger inter-brand price gap. The stores or platforms extract more profits from manufacturers and consumers through the promotion services. The effects on consumer surplus and social welfare depend on whether the promotion alters consumer preferences. If it does, more consumers would be choosing their less-preferred brands because of the larger inter-brand price gap, which would be socially inefficient. If it does not, the promotion may help to correct the price distortion, but the social welfare effect is positive only when the promotion effect is small enough. In both cases, the promotion services reduce the total consumer surplus by softening inter-brand competition.

Navigating the Nexus between Social Media, Political Scandal, and Good Governance in Nigeria

2017 ◽  
pp. 157-184
Author(s):  
Essien Essien
Keyword(s):  
Social Media ◽  
Citizen Participation ◽  
Good Governance ◽  
Unintended Consequences ◽  
Counter Measures ◽  
Human Endeavor ◽  
The Social ◽  
Economic Forces ◽  
Effective Use ◽  
Political Scandal

The advent of the social media revolution in contemporary time has had a phenomenal impact in almost every area of human endeavor in many societies. However, social media has some credibility burden that could hinder its effective use and also produce unintended consequences such as political propaganda, and other unwholesome activities as it affects politics and governance. This study sought to assess the nexus between social media, political scandal and good governance in Nigeria. It also assessed the success or otherwise of the institutional counter-measures in checkmating the excesses of social media. Situated within the framework of reputation repair and social responsibility theories, the paper acknowledges that the conventional mass media has ties with the political and economic forces in the society, thus, are somewhat incapacitated in rising to the societal challenges. Consequently, the paper presents the social media as a veritable alternative, arguing that social media tools have what it takes to serve as a platform for citizen participation in governance.

Competitive Effects of Purchase-Based Targeted Advertising

2012 ◽  
Vol 10 (4) ◽  
pp. 71-84
Author(s):  
Jianqiang Zhang ◽  
Weijun Zhong ◽  
Shue Mei
Keyword(s):  
Social Welfare ◽  
Product Differentiation ◽  
Price Competition ◽  
Consumer Surplus ◽  
Consumer Information ◽  
Competitive Effects ◽  
Targeted Advertising ◽  
Consumer Valuation ◽  
Competitive Environments ◽  
Second Period

This paper develops a two-period sales model to investigate the competitive effects of purchase-based targeted advertising. In the model, two competing firms gain consumer information during the first period sales, which allows them to target advertising based on consumer purchase history. Advertising is assumed to be persuasive in terms of consumer valuation enhancing and product differentiation increasing. The authors find that the firm’s ability to target can damage industry profits, consumer surplus, and even social welfare. The conditions under which targeted advertising is positive or negative are derived, showing that price competition is softened in the second period but intensified in the first. It is suggested that firms under competitive environments cautiously sponsor targeted advertising with appropriate contents.

Adult Education, Community, and Learning for Democracy in Scotland

2017 ◽  
Author(s):  
Jim Crowther ◽  
Aileen Ackland ◽  
Margaret Petrie ◽  
David Wallace
Keyword(s):  
Adult Education ◽  
Critical Role ◽  
Democratic Culture ◽  
Education Community ◽  
The Social ◽  
Economic Forces ◽  
Democratic Action ◽  
Thoughtful Reflection ◽  
Democratic Life ◽  
The Relationship

Historically, the relationship between adult education and democracy has been one of mutual synergy with education providing the context for thoughtful reflection and democratic action. The social purpose of adult education was precisely in its contribution to making the world a more socially just and more democratic place. However, this relationship has been eroded over the years as adult education and democratic life have become increasingly distanced from each other. Can this be repaired? This is the central theme of this entry, which is explored through trends relating to adult education, community, and democracy, and articulated through the particular experiences of the Scottish context we are familiar with. This article argues that adult education can enrich democratic culture and practice and that in turn democratic issues and debates can energize and stimulate adult education. While the Scottish lens is distinctive, our argument has a broader reference point, as the neoliberal economic forces and subjectivities shaping adult education are global and pervasive, busily percolating in, down and across all sectors and levels of education. Our claim is that adult education can still play a critical role in nurturing democratic life. Rather than abandon democracy, the task of education is to deepen it at all levels and ensure politics is educative. From this view, adult education for democracy can reinvigorate the culture and institutions of democracy and, in the process, help to reclaim the lodestone—or soul—of adult education. For some readers, this may seem a nebulous idea; however, for others it will mean that which animates what is worthwhile in adult education. A profession without a soul is a dead one. This article is a collaborative effort that draws from different university institutions involved in the training and formation of community educators. Together these institutions represent a spectrum of the Scottish university sector involved in this work and bring to this analysis considerable experience. Although different interests and distinctive emphases are represented in the perspectives here, this entry focuses on common ideas and values. We start therefore by situating ourselves in terms of professional, political, ideological, and theoretical orientations.

scholarly journals Indirect Network Effects and Adoption Externalities

2008 ◽  
Vol 7 (3) ◽  
Author(s):  
Jeffrey Church ◽  
Neil Gandal ◽  
David Krause
Keyword(s):  
Network Effects ◽  
Returns To Scale ◽  
Social Benefit ◽  
Software Systems ◽  
Free Entry ◽  
Private Benefit ◽  
Increasing Returns To Scale ◽  
Indirect Network Effects ◽  
The Social ◽  
Consumption Benefits

Can indirect network effects lead to adoption externalities? If so, when? We show that in markets where consumption benefits arise from hardware/software systems, adoption externalities will occur when there are (i) increasing returns to scale in the production of software, (ii) free entry in software, and (iii) consumers have a preference for software variety. The private benefit of the marginal hardware purchaser is less than the social benefit since the marginal hardware purchaser does not internalize the welfare improving response of the software industry, particularly the increase in software variety, on inframarginal purchasers when the market for hardware expands.

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