The Impact of Antitrust Fines on the Formation of Collusive Cartels

2011 ◽  
Vol 11 (1) ◽  
Author(s):  
David Bartolini ◽  
Alberto Zazzaro
Keyword(s):  
Competition Policy ◽  
Repeated Games ◽  
Coalitional Game ◽  
Sufficient Condition ◽  
Market Demand ◽  
Enforcement Costs ◽  
Cartel Formation ◽  
The Impact ◽  
Infinitely Repeated Games

Abstract The literature on collusive cartels has mainly focused on the impact of antitrust fines on the sustainability of cartels, in infinitely repeated games. This approach, however, does not allow us to study the effect of antitrust fines on the incentives to form cartels in the first place. In this paper, we adopt a coalitional game approach to modeling collusive agreements, showing that antitrust fines may drive firms from partial cartels to a monopolistic cartel. Moreover, by introducing uncertainty on market demand, we show that the socially optimal competition policy can call for a finite or even zero antitrust penalty, even if there are no enforcement costs. We provide a sufficient condition for these results to apply to any coalitional game of cartel formation with symmetric firms. Then, we discuss the extension to asymmetric firms and dynamic collusion.

scholarly journals The Impact of Monitoring in Infinitely Repeated Games: Perfect, Public, and Private

2019 ◽  
Vol 11 (1) ◽  
pp. 1-43 ◽  
Author(s):  
Masaki Aoyagi ◽  
V. Bhaskar ◽  
Guillaume R. Fréchette
Keyword(s):  
Laboratory Experiment ◽  
Repeated Games ◽  
Imperfect Monitoring ◽  
Public And Private ◽  
Private Monitoring ◽  
Stage Game ◽  
The Impact ◽  
Public Monitoring ◽  
Perfect Monitoring ◽  
Infinitely Repeated Games

This paper uses a laboratory experiment to study the effect of the monitoring structure on the play of the infinitely repeated prisoner’s dilemma. Keeping the strategic form of the stage game fixed, we examine the behavior of subjects when information about past actions is perfect (perfect monitoring), noisy but public (public monitoring), and noisy and private (private monitoring). We find that the subjects sustain cooperation in every treatment, but that their strategies differ across the three treatments. Specifically, the strategies under imperfect monitoring are both more complex and more lenient than those under perfect monitoring. The results show how the changes in strategies across monitoring structures mitigate the effect of noise in monitoring on efficiency. (JEL C72, C73, C92, D82, D83)

Competition Policy under Economic Crisis

2009 ◽  
pp. 54-69 ◽  
Author(s):  
A. Shastitko ◽  
S. Avdasheva ◽  
S. Golovanova
Keyword(s):  
Division Of Labor ◽  
Economic Crisis ◽  
Industrial Policy ◽  
Competition Policy ◽  
Transition Economy ◽  
Economic Recession ◽  
Price Rigidity ◽  
Key Factor ◽  
Policy Measures ◽  
The Impact

The analysis of competition policy under economic crisis is motivated by the fact that competition is a key factor for the level of productivity. The latter, in its turn, influences the scope and length of economic recession. In many Russian markets buyers' gains decline because of the weakness of competition, since suppliers are reluctant to cut prices in spite of the decreasing demand. Data on prices in Russia and abroad in the second half of 2008 show asymmetric price rigidity. At least two questions are important under economic crisis: the 'division of labor' between pro-active and protective tools of competition policy and the impact of anti-crisis policy on competition. Protective competition policy is insufficient in transition economy, especially in the days of crisis it should be supplemented with the well-designed industrial policy measures which do not contradict the goals of competition. The preferable tools of anti-crisis policy are also those that do not restrain competition.

scholarly journals Does the Prevalence of Obesity Affect the Demand for Soft Drinks? Evidence from Cross-Country Panel Data

2022 ◽  
Vol 19 (2) ◽  
pp. 938
Author(s):  
Fabrizio Ferretti ◽  
Michele Mariani ◽  
Elena Sarti
Keyword(s):  
Nutrition Education ◽  
Least Squares Method ◽  
Soft Drink ◽  
Soft Drinks ◽  
Market Demand ◽  
Reverse Causality ◽  
Soft Drink Consumption ◽  
Variable Approach ◽  
Prevalence Of Obesity ◽  
The Impact

The impact of soft drinks on obesity has been widely investigated during the last decades. Conversely, the role of obesity as a factor influencing the demand for soft drinks remains largely unexplored. However, understanding potential changes in the demand for soft drinks, as a result of changes in the spread of obesity, may be useful to better design a comprehensive strategy to curb soft drink consumption. In this paper, we aim to answer the following research question: Does the prevalence of obesity affect the demand for soft drinks? For this purpose, we collected data in a sample of 97 countries worldwide for the period 2005–2019. To deal with problems of reverse causality, an instrumental variable approach and a two-stage least squares method were used to estimate the impact of the age-standardized obesity rate on the market demand for soft drinks. After controlling for several demographic and socio-economic confounding factors, we found that a one percent increase in the prevalence of obesity increases the consumption of soft drinks and carbonated soft drinks by about 2.37 and 1.11 L per person/year, respectively. Our findings corroborate the idea that the development of an obesogenic food environment is a self-sustaining process, in which obesity and unhealthy lifestyles reinforce each other, and further support the need for an integrated approach to curb soft drink consumption by combining sugar taxes with bans, regulations, and nutrition education programs.

scholarly journals Benefits of implementing IT tools and procedures for the estimation and measurement uncertainty in testing laboratories

2020 ◽  
Vol 2 (7) ◽  
pp. 317-323
Author(s):  
Maria Cristina Dijmarescu
Keyword(s):  
Measurement Uncertainty ◽  
Rapid Expansion ◽  
Market Demand ◽  
Destructive Testing ◽  
Continuous Increase ◽  
Testing Laboratories ◽  
Quality Of Products ◽  
The Impact ◽  
Non Destructive

Destructive and non-destructive testing of materials present a rapid expansion given by the increase in market demand caused by the desire to obtain an increasingly better quality of products. The continuous increase in quality demands leads directly to the need to implement and modernize the techniques, methods, and equipment used for quality control. Consequently, the need for product testing services has a rapid growth. This paper presents the strength and weaknesses of implementing IT tools for the estimation of the measurement uncertainty in testing laboratories and the impact of these tools on the economic part

scholarly journals The impact of FDI on environmental technology innovation from the perspective of environmental regulation

2020 ◽  
Vol 206 ◽  
pp. 02001
Author(s):  
Ziting Wei
Keyword(s):  
Environmental Regulation ◽  
Technology Innovation ◽  
Negative Impact ◽  
Positive Impact ◽  
Inhibitory Effect ◽  
Market Demand ◽  
Environmental Technology ◽  
Industrial Enterprises ◽  
Threshold Regression Model ◽  
The Impact

Based on the perspective of environmental regulation, this paper selects panel data of 30 provinces in China from 2011 to 2016, establishes Hansen panel threshold regression model, and investigates the impact of FDI on environmental technology innovation of industrial enterprises in China under the threshold of environmental regulation. The results show that FDI has a significant inhibitory effect on the environmental technological innovation of industrial enterprises; the effect has a significant dual threshold of environmental regulation, with the intensity of environmental regulation across the threshold, the negative impact of FDI gradually weakened; market demand and industry scale have a significant positive impact, the role of technological progress is not significant. The findings of this paper provide a certain reference for the rational use of environmental regulation policies, the maximization of FDI technology spillover, the promotion of environmental technology innovation of industrial enterprises, and the realization of “win-win” of environment and economy.

scholarly journals Learning Losses Caused by the Covid-19 Pandemic - A Significant Threat to Economic Development

2021 ◽  
Vol 4 (1) ◽  
pp. 92
Author(s):  
Tea Kasradze ◽  
Nino Zarnadze
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
International Organizations ◽  
Positive Impact ◽  
Secondary Data ◽  
Market Demand ◽  
Local Policy ◽  
Education Systems ◽  
Increase Productivity ◽  
The Impact

Numerous studies show that there is a positive correlation between education and the economic development of the country. Strong education systems have a positive impact not only on the success of individuals but also on the economy of the entire country. Graduates equipped with the skills required by the labor market can easily find a place in this market. Knowledge and skills relevant to market demand increase productivity have a positive impact on economic growth and development. Unfortunately, Covid Pandemic has severely damaged the education systems. Governments, scientists, and experts provide us with statistical information daily around the world about both the slowdown in economic growth as a whole and the problems of individual sectors of the economy. These are the problems and numbers that are already visible and it can be said that the losses are easily measurable. However, the damage caused to the economy by education systems affected by the pandemic will be felt by countries and humanity years later, nor will it be easy to calculate. The problem is even more difficult in poor and developing countries. This paper aims to study the impact of the Covid Pandemic on the education system and economy in Georgia. The research examines the reports and studies of various international organizations, analyzing the secondary data obtained from them. Local policy documents, government reports and regulations, and papers of different researchers have also been studied, conclusions have been made and relevant recommendations have been developed.

Infinitely-repeated games with endogenous discounting

1996 ◽  
Vol 52 (2) ◽  
pp. 163-169 ◽  
Author(s):  
William S. Neilson ◽  
Harold Winter
Keyword(s):  
Repeated Games ◽  
Endogenous Discounting ◽  
Infinitely Repeated Games

Passive but defiant: the role of innovative capabilities in knowledge management and corporate entrepreneurship

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Azhar Khalil ◽  
Muhammad Khuram Khalil ◽  
Rashid Khalil
Keyword(s):  
Corporate Entrepreneurship ◽  
Empirical Literature ◽  
Equation Modeling ◽  
Market Demand ◽  
Content Type ◽  
Knowledge Based ◽  
Innovative Capabilities ◽  
The Impact ◽  
The Relationship

Purpose This paper aims to examine the role of organizational innovative capabilities (OIC) on the relationship between knowledge sharing (KS), corporate entrepreneurship (CE) and firm performance (FP). Specifically, this study uses the knowledge-based view to develop a model that examines the mentioned relationship. Design/methodology/approach Using survey data from 520 participants across 75 service sector companies in Thailand, measurement and structure models are tested through structural equation modeling to quantify the impact between constructs. Findings This study shows that KS and CE positively affect OIC and FP. A positive relationship is also found between KS and CE. The mediating impact of OIC strengthens the relationship between KS and CE on FP. Research limitations/implications Like all research using survey methods, the research is prone to respondent biases and generalizability. However, this paper has put the best effort to minimize such effects by rigorous methodological testing to avoid such biases. Practical implications The findings of this study suggest that to improve organizational learning and knowledge-based performance, commitment and understanding of the employees in the entire organization is crucial. KS significantly contributes to developing innovative abilities because of its characteristics of providing firm-specific and socially complex advantages. The way a firm transforms and exploits its knowledge may ascertain its level of innovativeness, such as coming up with certain problem-solving procedures and new product development according to the rapid change in the market demand. However, organizations may only instigate to effectively organize knowledge when their employees are ready to share knowledge. Continuous KS boosts entrepreneurial practices and contributes innovativeness across individuals, groups, units or the entire organization. Originality/value The relationship between CE, organization innovative capabilities and FP in the presence of KS is rarely discussed in both theoretical and empirical literature. This study contributes to the literature by arguing that apart from the direct impact of KS on FP, KS can lead the firms toward generating important competitive advantage by forming innovative capabilities that can significantly influence FP.

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