Competitive Framing

2014 ◽  
Vol 6 (3) ◽  
pp. 35-58 ◽  
Author(s):  
Ran Spiegler
Keyword(s):  
Industrial Organization ◽  
Consumer Choice ◽  
Nash Equilibria ◽  
Market Competition ◽  
Behavioral Industrial Organization ◽  
Marketing Messages

I present a simple framework for modeling two-firm market competition when consumer choice is “frame-dependent,” and firms use costless “marketing messages” to influence the consumer’s frame. This framework embeds several recent models in the “behavioral industrial organization” literature. I identify a property that consumer choice may satisfy, which extends the concept of Weighted Regularity due to Piccione and Spiegler (2012), and provide a characterization of Nash equilibria under this property. I use this result to analyze the equilibrium interplay between competition and framing in a variety of applications. (JEL D43, D82, M31)

Remaking Medicare: The Voucher Myth

1998 ◽  
Vol 28 (1) ◽  
pp. 29-46
Author(s):  
Jonathan Oberlander
Keyword(s):  
Consumer Choice ◽  
Baby Boom ◽  
Market Competition ◽  
The Elderly ◽  
Medicare Beneficiaries ◽  
Short Term ◽  
Medicare Program ◽  
The Stability ◽  
Voucher System

There is growing enthusiasm for transforming Medicare into a voucher system. Advocates claim vouchers would increase the health care choices available to Medicare beneficiaries, reduce the regulatory burden on the federal government, and promote the benefits of fair market competition. In addition, some analysts contend vouchers are the only feasible solution to Medicare's short-term financing problems and the long-term “crisis” of the retirement of the baby-boom generation. The author argues against these claims. Vouchers would not work as advertised by proponents because of the limitations of risk-adjustment methods and unrealistic assumptions about consumer choice. Moreover, the elderly and disabled Medicare population is ill-suited to cope in a competitive insurance system. Implementation of vouchers would therefore pose a threat to both the health of beneficiaries and the stability of the Medicare program. The implications of this analysis for Medicare reform are discussed.

Analysis of Facility Agriculture Industry’s Dilemma and Policy Crack Based on SCP Paradigm: Taking the Case of Yanqing County, Beijing

2013 ◽  
Vol 798-799 ◽  
pp. 936-940
Author(s):  
Mei Hu ◽  
Jie Su
Keyword(s):  
Industrial Organization ◽  
Organization Theory ◽  
Market Competition ◽  
Prisoner’S Dilemma ◽  
Government Policies ◽  
Agricultural Industrialization ◽  
Industrial Policies ◽  
Agriculture Industry ◽  
Industrial Organization Theory ◽  
Important Form

As an important form of agricultural industrialization in China, facility agriculture industry has been greatly developed in recent years, but due to fierce market competition, facility agriculture industry is suffering low effectiveness. Taking Yanqing County, Beijing as an example, supported by industrial organization theory, the paper attempts to make a thorough analysis of Yanqing facility agriculture industry by using SCP paradigm, the result shows that industry operation is troubled by two dilemmas: Scale dilemma and prisoner’s dilemma, and the solution to free the industry from the difficulties is government policies. Based on the conclusion of the analysis, the paper adjusted the traditional SCP paradigm, highlighted the importance of government policies, and made some suggestions for the formulating facility agriculture industrial policies.

The Basic Tacit Knowledge Acquisition Model of Industrial Organization and its SD Simulation

2010 ◽  
Vol 121-122 ◽  
pp. 579-584
Author(s):  
Ming Liang Wei ◽  
Tao Feng
Keyword(s):  
Industrial Organization ◽  
System Dynamics ◽  
Knowledge Acquisition ◽  
Tacit Knowledge ◽  
Market Competition ◽  
Competition Advantage ◽  
Basic Model ◽  
Computer Aided ◽  
Vital Resource

Knowledge is increasingly becoming one of the most important productive factors those which create the value of the industrial organization. In fierce market competition, the tacit knowledge is the vital resource for corporation to build and obtain competition advantage. From the perspective of the basic model of tacit knowledge acquisition, this paper studies how the tacit knowledge spreads between two corporations, and uses the theory of System Dynamics (SD) to analyze it by the method of Computer-aided Simulation.

scholarly journals Untangling the complexity of market competition in consumer goods—A complex Hilbert PCA analysis

PLoS ONE ◽  
2021 ◽  
Vol 16 (2) ◽  
pp. e0245531
Author(s):  
Makoto Mizuno ◽  
Hideaki Aoyama ◽  
Yoshi Fujiwara
Keyword(s):  
Consumer Goods ◽  
Consumer Choice ◽  
Quantitative Research ◽  
Market Competition ◽  
Principal Component ◽  
Hodge Decomposition ◽  
Multiple Products ◽  
Managerial Implications ◽  
Novel Method ◽  
Competitive Products

Today’s consumer goods markets are rapidly evolving with significant growth in the number of information media as well as the number of competitive products. In this environment, obtaining a quantitative grasp of heterogeneous interactions of firms and customers, which have attracted interest of management scientists and economists, requires the analysis of extremely high-dimensional data. Existing approaches in quantitative research could not handle such data without any reliable prior knowledge nor strong assumptions. Alternatively, we propose a novel method called complex Hilbert principal component analysis (CHPCA) and construct a synchronization network using Hodge decomposition. CHPCA enables us to extract significant comovements with a time lead/delay in the data, and Hodge decomposition is useful for identifying the time-structure of correlations. We apply this method to the Japanese beer market data and reveal comovement of variables related to the consumer choice process across multiple products. Furthermore, we find remarkable customer heterogeneity by calculating the coordinates of each customer in the space derived from the results of CHPCA. Lastly, we discuss the policy and managerial implications, limitations, and further development of the proposed method.

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