scholarly journals Exchange Competition, Entry, and Welfare

2021 ◽  
Author(s):  
Giovanni Cespa ◽  
Xavier Vives
Keyword(s):  
Market Power ◽  
Competition Model ◽  
Market Quality ◽  
Free Entry ◽  
Pricing Policies ◽  
Microstructure Model ◽  
Do So

Abstract We assess the consequences for market quality and welfare of different entry regimes and exchange pricing policies. To do so, we integrate a microstructure model with a free-entry, exchange competition model where exchanges have market power in technological services. Free-entry delivers superior liquidity and welfare outcomes vis-`a-vis an unregulated monopoly, but entry can be excessive or insufficient. Depending on the extent of the monopolist's technological services undersupply compared to the first best, a planner can achieve a higher welfare controlling entry or platform fees.

The Cross-Sectional Spillovers of Single Stock Circuit Breakers

2018 ◽  
Vol 04 (03n04) ◽  
pp. 1950008
Author(s):  
James Brugler ◽  
Oliver Linton ◽  
Joseph Noss ◽  
Lucas Pedace
Keyword(s):  
Stock Exchange ◽  
Spillover Effect ◽  
Market Quality ◽  
Trading Costs ◽  
Circuit Breakers ◽  
Cross Sectional ◽  
Transaction Data ◽  
Continuous Trading ◽  
Do So

This paper uses transaction data to estimate how single stock circuit breakers on the London Stock Exchange affect other stocks that remain in continuous trading. This “spillover” effect is estimated by calculating the effect of a trading halt on the market quality of stocks that remain in continuous trading and comparing this with the effect of a stock whose absolute returns are of a magnitude nearly sufficient to trigger a trading halt but do not do so. Market quality is measured using a combination of trading costs, volatility and volume. In the two-month period we study, characterized by a relatively volatile trading environment, we find that circuit breakers lead to a significant improvement in the liquidity, and reduction in the volatility, of stocks that remain in continuous trading. This suggests that — at least over the period covered by our data — single stock circuit breakers can play an important role in reducing the spillover of poor market quality across stocks.

scholarly journals Optimal Pricing and Capacity Under Well-Defined and Well-Known Deterministic Demand Fluctuations

2019 ◽  
Vol 11 (2) ◽  
pp. 15
Author(s):  
Tchai Tavor ◽  
Limor Dina Gonen ◽  
Uriel Spiegel
Keyword(s):  
Profit Maximization ◽  
Optimal Pricing ◽  
Peak Period ◽  
For Profit ◽  
Pricing Policies ◽  
Deterministic Demand ◽  
Optimal Capacity ◽  
Demand Fluctuations ◽  
Do So

Fluctuations in demand require diverse considerations with respect to planned capacity. At peak periods, decreased capacity may result in supply shortages and   thus in lower revenues and unachievable profits.  In contrast, smaller capacity at off-peak periods reduces the substantial costs of large and unutilized capacity.   The questions to be addressed ask (i) what the optimal pricing policies are at peak and off-peak periods; (ii) what the optimal capacity is for profit maximization of the supplier; and furthermore (iii) how the shifting of demands from peak to off-peak periods may reduce fluctuation and impact profits. The present paper develops a model that compares two cases. In Case 1 it is not possible to transfer partial demand from a peak period to an off-peak period, while in Case 2 it is possible to do so. The comparison between the cases illustrates various results, some of which are less intuitive than others. For instance, a larger gap between the peak and off-peak periods leads to a larger optimal capacity in Case 1 than in Case 2. However, a smaller gap presents a different picture. When there is less willingness to switch demand between the periods, the capacity of Case 2 is larger than that of Case 1. 

scholarly journals UPSTREAM INCENTIVES TO ENCOURAGE DOWNSTREAM COMPETITION IN A VERTICALLY SEPARATED INDUSTRY

2018 ◽  
Vol 63 (03) ◽  
pp. 619-627 ◽  
Author(s):  
JOEL SANDONÍS ◽  
JAVIER M. LÓPEZ-CUÑAT
Keyword(s):  
Market Power ◽  
Previous Literature ◽  
Free Entry ◽  
Intense Competition ◽  
Downstream Competition ◽  
Downstream Market ◽  
Dominant Supplier

We show in this paper that a dominant supplier, under observable two-part tariff contracts and an alternative, less efficient supply of the input, could benefit from more intense competition downstream provided that it has strong enough market power upstream. This implies that the incentives of upstream suppliers to foreclose downstream firms are less important than the previous literature had suggested. In fact, we find that the result also holds under observable linear contracts when we consider free entry in the downstream market.

scholarly journals Why Do Merchants Accept Payment Cards?

2010 ◽  
Vol 9 (3) ◽  
Author(s):  
Julian Wright
Keyword(s):  
Price Competition ◽  
Competition Model ◽  
Free Entry ◽  
Short Article ◽  
Payment Card ◽  
Acceptance Rule ◽  
Industry Output ◽  
Payment Cards

This short article explains why merchants accept expensive payment cards when merchants are Cournot competitors. The same acceptance rule as the Hotelling price competition model of Rochet and Tirole (2002) is derived. Unlike the models used in the existing literature, in the Cournot setting without free entry of merchants, payment card acceptance expands merchant output and increases merchant profit in equilibrium. With free entry, payment card acceptance increases the number of merchants in the industry and industry output.

Markups and Fixed Costs in Generic and Off-Patent Pharmaceutical Markets

2021 ◽  
pp. 1-28
Author(s):  
Sharat Ganapati ◽  
Rebecca McKibbin
Keyword(s):  
Market Power ◽  
Quality Standards ◽  
The United States ◽  
Fixed Costs ◽  
Free Entry ◽  
Pharmaceutical Markets ◽  
Drug Prices ◽  
The Us ◽  
Pharmaceutical Prices ◽  
Comparable Quality

Abstract There is wide dispersion in pharmaceutical prices across countries with comparable quality standards. Under monopoly, off-patent and generic drug prices are at least four times higher in the United States than in comparable Englishspeaking high income countries. With five or more competitors, off-patent drug prices are similar or lower. Our analysis shows that differential US markups are largely driven by the market power of drug suppliers and not due to wholesale intermediaries or pharmacies. Furthermore, we show that the traditional mechanism of reducing market power – free entry – is limited because implied entry costs are substantially higher in the US.

scholarly journals Bringing Radio into America's Homes: Marketing New Technology in the Great Depression

2016 ◽  
Vol 90 (2) ◽  
pp. 251-276 ◽  
Author(s):  
Peter Scott ◽  
James T. Walker
Keyword(s):  
Market Power ◽  
Great Depression ◽  
New Technology ◽  
Distribution Networks ◽  
Competition Model ◽  
Barriers To Entry ◽  
The Great Depression ◽  
Cooperative Strategies ◽  
Depression Era

We examine the early marketing and distribution of entertainment radio sets. Manufacturers used distribution networks to both maximize profits and create barriers to entry. Lacking the market power of auto manufacturers, they developed cooperative strategies with authorized distributors and dealers. Dealers often complained about the costly activities manufacturers required of them. However, these underpinned the dominant quality and branding competition model of the 1920s, while the Depression-era switch to a simpler radio format, sold on price, proved catastrophic for the specialist retailer.

Holding replication studies to mainstream standards of evidence

2018 ◽  
Vol 41 ◽  
Author(s):  
Duane T. Wegener ◽  
Leandre R. Fabrigar
Keyword(s):  
Replication Studies ◽  
Replication Research ◽  
Standards Of Evidence ◽  
Do So

AbstractReplications can make theoretical contributions, but are unlikely to do so if their findings are open to multiple interpretations (especially violations of psychometric invariance). Thus, just as studies demonstrating novel effects are often expected to empirically evaluate competing explanations, replications should be held to similar standards. Unfortunately, this is rarely done, thereby undermining the value of replication research.

Electron Microscopy of a Herpesvirus Isolated from Marek's Disease in Duck and Chicken Embryo Fibroblast Cultures

1968 ◽  
Vol 26 ◽  
pp. 222-223 ◽  
Author(s):  
Keyvan Nazerian
Keyword(s):  
Inclusion Bodies ◽  
Chicken Embryo Fibroblast ◽  
Marek's Disease ◽  
Marek’S Disease ◽  
Duck Embryo Fibroblast ◽  
Multinucleated Cells ◽  
Viral Particles ◽  
Infected Cells ◽  
And Control ◽  
Do So

A herpes-like virus has been isolated from duck embryo fibroblast (DEF) cultures inoculated with blood from Marek's disease (MD) infected birds. Cultures which contained this virus produced MD in susceptible chickens while virus negative cultures and control cultures failed to do so. This and other circumstantial evidence including similarities in properties of the virus and the MD agent implicate this virus in the etiology of MD.Histochemical studies demonstrated the presence of DNA-staining intranuclear inclusion bodies in polykarocytes in infected cultures. Distinct nucleo-plasmic aggregates were also seen in sections of similar multinucleated cells examined with the electron microscope. These aggregates are probably the same as the inclusion bodies seen with the light microscope. Naked viral particles were observed in the nucleus of infected cells within or on the edges of the nucleoplasmic aggregates. These particles measured 95-100mμ, in diameter and rarely escaped into the cytoplasm or nuclear vesicles by budding through the nuclear membrane (Fig. 1). The enveloped particles (Fig. 2) formed in this manner measured 150-170mμ in diameter and always had a densely stained nucleoid. The virus in supernatant fluids consisted of naked capsids with 162 hollow, cylindrical capsomeres (Fig. 3). Enveloped particles were not seen in such preparations.

Debates in Dysphagia Management: How Do You Use Evidence-Based Practice in Your Dysphagia Patient Care?

2011 ◽  
Vol 20 (4) ◽  
pp. 121-123
Author(s):  
Jeri A. Logemann
Keyword(s):  
Decision Making ◽  
Patient Care ◽  
Clinical Outcomes ◽  
Clinical Judgment ◽  
Clinical Decision Making ◽  
Evidence Based Practice ◽  
Clinical Decision ◽  
Evidence Based ◽  
Clinical Method ◽  
Do So

Evidence-based practice requires astute clinicians to blend our best clinical judgment with the best available external evidence and the patient's own values and expectations. Sometimes, we value one more than another during clinical decision-making, though it is never wise to do so, and sometimes other factors that we are unaware of produce unanticipated clinical outcomes. Sometimes, we feel very strongly about one clinical method or another, and hopefully that belief is founded in evidence. Some beliefs, however, are not founded in evidence. The sound use of evidence is the best way to navigate the debates within our field of practice.

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