Oligopoly Theory and the Agreement Requirement

2013 ◽  
Author(s):  
Louis Kaplow
Keyword(s):  
Game Theory ◽  
Ab Initio ◽  
Repeated Games ◽  
Competition Law ◽  
Oligopoly Theory ◽  
Modern Economic ◽  
The Relationship

This chapter assesses the relationship between modern oligopoly theory and the meaning of the agreement requirement. Because competition law seeks to regulate oligopoly behavior and, moreover, to ground such regulation in modern economic understandings, it would seem to follow that, if the law's notion of agreement reflects economic substance, the agreement requirement would correspond to a core distinction drawn in oligopoly theory. As it turns out, that theory, which is an application of game theory (particularly, that of repeated games), does have an explicit notion of agreement. But this notion refers to binding agreements and thus is irrelevant for present purposes because competition law renders horizontal price-fixing agreements void ab initio.

“Capital” as the key to solving modern economic problems (Offline addition to the discussion on the revival of a special seminar on Karl Marx’s “Capital”)

2019 ◽  
pp. 142-150
Author(s):  
Alexandеr V. Buzgalin
Keyword(s):  
Political Economy ◽  
Educational Process ◽  
Capitalist System ◽  
Economic Problems ◽  
Modern Economy ◽  
Modern Economic ◽  
The Relationship

In the article prepared in connection with the discussion on the use of the Marxist political economy heritage and the revival of a special seminar on Marx’s “Capital”, the author shows the dialectic of the relationship between the content and the transformed forms of the modern capitalist system; the potential of “Capital” to understand the content of the modern economy, and the potential of economics to understand its forms. On this basis, the author shows which questions of our time are answered by Marxist methodology and theory, and which are not, and concludes that Marxist political economy has significant methodological potential to become an important component of the scientific and educational process in current conditions.

Competition Policy and Price Fixing

2013 ◽  
Author(s):  
Louis Kaplow
Keyword(s):  
Competition Policy ◽  
Competition Law ◽  
Direct Approach ◽  
Social Harm ◽  
Systematic Analysis ◽  
Oligopoly Theory ◽  
Different Types ◽  
Error Costs ◽  
Benefits And Costs ◽  
Desirable Behavior

Throughout the world, the rule against price fixing is competition law's most important and least controversial prohibition. Yet there is far less consensus than meets the eye on what constitutes price fixing, and prevalent understandings conflict with the teachings of oligopoly theory that supposedly underlie modern competition policy. This book offers a fresh, in-depth exploration of competition law's horizontal agreement requirement, presents a systematic analysis of how best to address the problem of coordinated oligopolistic price elevation, and compares the resulting direct approach to the orthodox prohibition. The book elaborates the relevant benefits and costs of potential solutions, investigates how coordinated price elevation is best detected in light of the error costs associated with different types of proof, and examines appropriate sanctions. Existing literature devotes remarkably little attention to these key subjects and instead concerns itself with limiting penalties to certain sorts of interfirm communications. Challenging conventional wisdom, the book shows how this circumscribed view is less well grounded in the statutes, principles, and precedents of competition law than is a more direct, functional proscription. More important, by comparison to the communications-based prohibition, the book explains how the direct approach targets situations that involve both greater social harm and less risk of chilling desirable behavior—and is also easier to apply.

Stimulating the Development of "Greening" of Ukrainian Industry

2021 ◽  
pp. 55-67
Author(s):  
Ella Sheludko ◽  
◽  
Mariia Zavgorodnia ◽  
Keyword(s):  
Public Policy ◽  
Large Scale ◽  
Industrial Enterprises ◽  
Valuation Method ◽  
Circular Model ◽  
Analysis And Synthesis ◽  
Logical Method ◽  
Modern Economic ◽  
The Relationship ◽  
Further Development

The object of this study is the further development of eco-innovations for the rise of industry and the economy. Emphasis is placed on the growing relevance of "green" incentives in line with climate challenges, the economical use of natural resources, as well as the need for a systematic vision of environmental issues and the implementation of international requirements. The study is based on the work of foreign scientists, international rankings and world best practices for the introduction of modern economic mechanisms of state incentives for greening the economy, green modernization, the transition to a circular model of the economy. There is a difference in the implementation of environmental policy - some local projects in Ukraine and the European approach - with the assessment of eco-innovation, systemic change, the formation of ecosystems, scaling technological solutions. The main methods used in the study are: methods of system-structural analysis, analysis and synthesis, grouping - for preliminary analysis and selection of appropriate tools in the study of the implementation of eco-innovation in Ukraine and EU countries; index valuation method and method of comparative analysis - used in the analysis of public policy to stimulate the company to "green" growth; abstract-logical method - used to establish the relationship between the need to introduce new instruments of public policy in the environmental sphere with elements of large-scale reform in the context of climate modernization of industry and to form a systematic vision of major achievements in implementing international requirements for eco-modernization of industrial enterprises. The paper analyzes the forms of international assistance that can compensate for the lack of available financial resources for the purposes of green modernization of the economy in conditions of limited financial capabilities of the state, intensification of competition for European and international environmental investments. The obtained result - a set of possible tools to stimulate Ukrainian industry - allows more systematic implementation of "greening" of Ukrainian industry, and their implementation and combination in a specific mechanism will determine the success of an industrial socially-oriented economy.

Stability Analysis of Supply Chain Cooperation Contract under Asymmetric Information

2010 ◽  
Vol 44-47 ◽  
pp. 794-798 ◽  
Author(s):  
Xin Ma
Keyword(s):  
Game Theory ◽  
Supply Chain ◽  
Repeated Games ◽  
Information Structure ◽  
Transition Period ◽  
Information Economics ◽  
Real Life ◽  
The Other ◽  
Game Equilibrium ◽  
The Stability

The stability of cooperation contract is the result of abandon opportunistic behavior in the process of repeated games among the enterprise and the other subjects in the supply chain from long-term interests, and is also the foundation of healthy development for the whole supply chain. But in real life cooperation contract instability everywhere for a variety of reasons, such as ethical considerations, institutional factors, cultural factors and special reasons during the transition period and so on. From the perspective of information economics and game theory, the main game process of cooperation between enterprise and the other subjects in supply chain is not only the game of information, but also the game of interests. Information structure and the interesting structure are the important factors for the subjects of the game of the implementation of decisions and the basic contractual constraints for cooperative game equilibrium. Cooperation behaviors among the enterprise and the other subjects in the supply chain were studied on the basis of game theory, and the stability of cooperation contract is also being discussed in this paper.

Development of Game Theoretic Protocols for Multilevel Design

2010 ◽  
Author(s):  
Ayan Sinha ◽  
Farrokh Mistree ◽  
Janet K. Allen
Keyword(s):  
Game Theory ◽  
Decision Making ◽  
Geometric Modeling ◽  
Underwater Vehicle ◽  
Design Problems ◽  
Single Level ◽  
Engineering Teams ◽  
Game Theoretic ◽  
Multiple Levels ◽  
The Relationship

The effectiveness of the use of game theory in addressing multi-objective design problems has been illustrated. For the most part, researchers have focused on design problems at single level. In this paper, we illustrate the efficacy of using game theoretic protocols to model the relationship between multidisciplinary engineering teams and facilitate decision making at multiple levels. We will illustrate the protocols in the context of an underwater vehicle with three levels that span material and geometric modeling associated with microstructure mediated design of the material and vehicle.

scholarly journals Green innovation, government incentive and enterprise performance are explored from the perspective of game

2021 ◽  
Vol 275 ◽  
pp. 02006
Author(s):  
Xiaohui Ren
Keyword(s):  
Game Theory ◽  
Rapid Development ◽  
Enterprise Performance ◽  
Green Innovation ◽  
Green Development ◽  
Pollution Problem ◽  
Environmental Pollution Problem ◽  
And Performance ◽  
The Relationship

The rapid development of economy brings serious environmental pollution problem. Green innovation, as the connection point between government environmental regulation measures and sustainable green development of enterprises, has become one of the important choices for the transformation and development of enterprises. Based on the classic model of “prisoner’s dilemma” in game theory, this paper deeply analyzes the relationship between green innovation and performance. It is found that it is easy to get into trouble if only relying on the spontaneous green innovation within the enterprise. Applying appropriate pressure outside the enterprise can promote the change of green innovation and bring long-term benefits to the enterprise.

scholarly journals Policy Assessment Investment Appeal of Innovation Projects Enterprises

2019 ◽  
Vol 9 (2) ◽  
pp. 5111-5122
Keyword(s):  
Regression Analysis ◽  
Practical Experience ◽  
Cash Flows ◽  
Financial Indicators ◽  
Correlation And Regression Analysis ◽  
Proposed Model ◽  
Modern Economic ◽  
The Subject ◽  
The Relationship ◽  
Future Cash Flows

The aim of the article is to summarize theoretical principles and practical experience regarding the relationship between the investment attractiveness of innovative projects and economic growth. The methods of correlation and regression analysis, extrapolation and modeling are used. The subject of the study was the features and patterns of the formation, use and regulation of the policy for assessing the investment attractiveness of company’s innovative projects in modern economic conditions. In the course of the study, an algorithm was developed to assess the size and level of investment attractiveness of the algorithm is based on the allocation of components of the enterprise’s potential. It is indicated that models for evaluating efficiency and cost should take into account not only future cash flows, but also non-financial indicators. Are proposed the construction of a multivariate model based on regression analysis. The essence of this model is to combine the traditional method of correlation analysis with least squares. This approach has the main advantage - relatively high accuracy and low costs in the construction and forecasting. The proposed model of a system for ensuring the investment attractiveness of innovative projects of companies consists of two main subsystems - information-analytical and implementation-control. These blocks provide results that allow you to increase investment attractiveness, as well as timely determine the external and internal risks of the enterpriseThe aim of the article is to summarize theoretical principles and practical experience regarding the relationship between the investment attractiveness of innovative projects and economic growth. The methods of correlation and regression analysis, extrapolation and modeling are used. The subject of the study was the features and patterns of the formation, use and regulation of the policy for assessing the investment attractiveness of company’s innovative projects in modern economic conditions. In the course of the study, an algorithm was developed to assess the size and level of investment attractiveness of the algorithm is based on the allocation of components of the enterprise’s potential. It is indicated that models for evaluating efficiency and cost should take into account not only future cash flows, but also non-financial indicators. Are proposed the construction of a multivariate model based on regression analysis. The essence of this model is to combine the traditional method of correlation analysis with least squares. This approach has the main advantage - relatively high accuracy and low costs in the construction and forecasting. The proposed model of a system for ensuring the investment attractiveness of innovative projects of companies consists of two main subsystems - information-analytical and implementation-control. These blocks provide results that allow you to increase investment attractiveness, as well as timely determine the external and internal risks of the enterprise

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