scholarly journals Simple Voting Games and Cartel Damage Proportioning

Games ◽  
2021 ◽  
Vol 12 (4) ◽  
pp. 74
Author(s):  
Stefan Napel ◽  
Dominik Welter

Individual contributions by infringing firms to the compensation of cartel victims must reflect their “relative responsibility for the harm caused” according to EU legislation. Several studies have argued that the theoretically best way to operationalize this norm is to apply the Shapley value to an equilibrium model of cartel prices. Because calibrating such a model is demanding, legal practitioners prefer workarounds based on market shares. Relative sales, revenues, and profits however fail to reflect causal links between individual behavior and prices. We develop a pragmatic alternative: use simple voting games to describe which cartel configurations can(not) cause significant price increases in an approximate, dichotomous way; then compute the Shapley-Shubik index. Simulations for a variety of market scenarios document that this captures relative responsibility better than market share heuristics can.

2015 ◽  
Author(s):  
Jonathan Tamary ◽  
Dror G Feitelson

Since Chrome's initial release in 2008 it has grown in market share, and now controls roughly half of the desktop browsers market. In contrast with Internet Explorer, the previous dominant browser, this was not achieved by marketing practices such as bundling the browser with a pre-loaded operating system. This raises the question of how Chrome achieved this remarkable feat, while other browsers such as Firefox and Opera were left behind. We show that both the performance of Chrome and its conformance with relevant standards are typically better than those of the two main contending browsers, Internet Explorer and Firefox. In addition, based on a survey of the importance of 25 major features, Chrome product managers seem to have made somewhat better decisions in selecting where to put effort. Thus the rise of Chrome is consistent with technical superiority over the competition.


2018 ◽  
pp. 1281-1294
Author(s):  
Juliette Milgram-Baleix ◽  
Melanie Parravano ◽  
Luis Enrique Pedauga

This chapter explores the impact of the Internet and Business to Business (B2B) e-commerce on Spanish manufacturing firms' market share while most studies focus on innovation and productivity. Using standard panel estimations, the authors find that firms with their own Web domain and that also carry out B2B e-commerce increase their market share, though this effect is not homogeneous among industries. B2B e-purchases have a more significant (and positive effect) on firms' market share than B2B e-sales have. Unlike other studies, the authors also use a panel threshold regression specification that shows that e-commerce affects market share in a non-linear manner depending on firm's characteristics. Larger firms and firms with higher share of skilled workers are better at increasing their market shares through Internet-based commerce strategies than other firms.


Author(s):  
Wijckmans Frank ◽  
Tuytschaever Filip

This chapter discusses the market share limits that determine the applicability of Regulation 330/2010. Each of the supplier and the buyer must in principle remain below an individual limit of 30 per cent. In order to assess the market share limits, the chapter addresses the following steps of the analysis: (i) ninth step: definition of the relevant market; and (ii) tenth step: calculation of the market shares. It concludes by addressing the concrete and practical application of the market share limits in accordance with Regulation 330/2010 and offers easy-to-read overview tables illustrating the effect of changes in the market share levels over time.


2021 ◽  
pp. 1-48
Author(s):  
Richard Whish ◽  
David Bailey

This chapter provides an overview of competition law and its economic context. Section 2 describes the practices that competition laws attempt to control in order to protect the competition process. Section 3 examines the theory of competition and gives an introductory account of why the effective enforcement of competition law is thought to be beneficial. Section 4 considers the goals of competition law. Section 5 introduces two key economic concepts, market definition and market power, that are important to a better understanding of competition policy. The chapter concludes with a table of market share figures that are significant in the application of EU and UK competition law, while reminding the reader that market shares are only ever a proxy for market power and can never be determinative of market power in themselves.


2012 ◽  
Vol 3 (1) ◽  
pp. 1-7
Author(s):  
Yi-Fen Chen ◽  
Chang-Lung Hsieh ◽  
Chia-Wen Tsai ◽  
Wen-Yu Chen ◽  
Wei-Hung Lin

The development of the smartphone will intensify in the future. Recently, many Taiwan’s manufacturers are investing in the smartphone market. The present research used the grey envelope analysis to forecast the smartphone industry market share of High Tech Computer Corporation (HTC) in Taiwan. The average residual error of up and down envelope is 6.1825% from 2003 to 2007, and the predicted market share in 2012 is 3.334%. The forecasting results showed that the market share of HTC will decrease in the future. The founding of research offers meaningful information for HTC to decide the new strategy. For government, the result could also help to implement adequate policies to support the development of smartphone industry in the future.


2017 ◽  
Vol 9 (6) ◽  
pp. 1 ◽  
Author(s):  
Aymen Frija ◽  
Boubaker Dhehibi ◽  
Mohamed Ben Salah ◽  
Aden Aw-Hassan

In the GCC countries, date-palm sector is strategically important for the economic, social and environmental development. Therefore, markets globalization has had a huge impact on the comparative advantages of date exports from the GCC countries, highlighting a new range of necessary determinants for competitiveness of these countries on the international date palm date market. The current study is conducted in the framework of the “Development of sustainable date palm production systems in the GCC countries of the Arabian Peninsula” project funded by the Gulf Cooperation Council (GCC) and led by the International Center for Agricultural Research in the Dry Areas (ICARDA), and aims to provide updated estimates of competitiveness indicators of the GCC countries on the international market of date palm.The study starts by a summary description of updated figures concerning date’s production, yields, and consumption trends of the different GCC countries. This first part of the research paper also includes a presentation of the date trade matrix (destinations of exports and imports) of the considered countries. In a second part of this section, a set of competitiveness indicators were calculated to better reflect on the date trade balances performances of each of the GCC countries. The measures of competitiveness indicators conducted in this paper include: i) the Market Share (MS); ii) the Revealed Comparative Advantage (RCA); and iii) the Trade Balance Index (TBI). The Market share indicator was used to identify size advantages and the degree of specialization of a given country on the international market of a given commodity. The RCA has been defined as a measure of performance of international trade competitiveness of a given country for a given commodity. The TBI is used to analyze whether a country has specialization in export (as net-exporter) or in import (as net-importer) for a specific group of products. Data from both FAOSTAT and UN COMTRADE sources was used for the calculation of these indicators. Empirical findings show that GCC and North African countries are holding more than 70% of the international market of dates. The sum of market shares of the 6 GCC countries was about 30% of the international date market during 2015. This is showing that these countries together have strong potential for dominating the international date market. In terms of growth, it was clear that all GCC countries, including the least present on the international market are progressing quite positively with increasing shares from one year to another. In terms of RCA, the highest RCA value was recorded for Saudi Arabia (KSA). It was for about 43.5 in 2013, indicating that the country date export share for 2013 is 43.5% higher than its share in total world export of agricultural goods. Finally, TBI results show the existence of structural differences between KSA and UAE in terms of dates export and import patterns. These two countries are both the main players in date export in the GCC area. However, even though UAE is a net exporter of date palm, which its TBI is much lower than the TBI of KSA, showing that UAE is also importing a higher proportion of its exported dates compared to KSA. The date trade patterns among the GCC countries shows that there is a wide scope of coordination between the different trade strategies of these countries, through specialization and division of tasks. This can generate important opportunities for gaining more weight on the world market of dates.


Author(s):  
Shelley-Ann Marion McGee

Purpose – This paper aims to examine whether authorized generics (AGs) have influenced prices and market shares in markets for molecules facing generic competition in South Africa. AGs (clones), which are identical to the originator brands, offer a solution for originator companies to protect their markets from independent generic (IG) competition. IG competitors have claimed that AGs have a negative impact on pricing and competition. Design/methodology/approach – In a retrospective analysis, pricing and quantity data for 24 months post generic entry were extracted for oral solid dosage form products which experienced generic entry into their markets between 2005 and 2011, divided into “Authorized generic affected” and “no authorized generic” markets. A series of indices was calculated, as well as market shares of competing originator and generic products, and the number of generic competitors determined. Indices and market share data for clone affected and unaffected groups were tested at 6, 12, 18 and 24 months using unmatched t-tests, at a 95 per cent significance level. Findings – None of the evaluated pricing indices showed a consistently significant difference existing between AG-affected and no-AG samples. The only variable for which the two samples consistently differed was market shares, with originator brands experiencing significantly more market share erosion in AG-affected markets. Pricing levels of generics and originator products as well as growth of numbers of generic competitors were similar in both AG-affected and no-AG groups. Originality/value – A study of this nature on the impacts of AGs in the South African generics has not been previously published and reflects the situation particular to the country.


Author(s):  
Swithin S. Razu ◽  
Shun Takai

Analysis of customer preferences is among the most important tasks in a new product development. How customers come to appreciate and decide to purchase a new product affects the products market share and therefore its success or failure. Unfortunately, when designers select a product concept early in the product development process, customer preference response to the new product is unknown. Conjoint analysis is a statistical marketing tool that has been used to estimate market shares of new product concepts by analyzing data on the product ratings, rankings or concept choices of customers. This paper proposes an alternative to traditional conjoint analysis methods that provide point estimates of market shares. It proposes two approaches to model market share uncertainty; bootstrap and binomial inference applied to choice-based conjoint analysis data. The proposed approaches are demonstrated and compared using an illustrative example.


2012 ◽  
Vol 34 (4) ◽  
pp. 391-412 ◽  
Author(s):  
Rachana Bhatt ◽  
Cory Koedel

We use data from one of the few states where information on curriculum adoptions is available—Indiana—to empirically evaluate differences in performance across three elementary-mathematics curricula. The three curricula that we evaluate were popular nationally during the time of our study, and two of the three remain popular today. We find large differences in effectiveness between the curricula, most notably between the two that held the largest market shares in Indiana. Both are best characterized as traditional in pedagogy. We also show that the publisher of the least-effective curriculum did not lose market share in Indiana in the following adoption cycle; one explanation is that educational decision makers lack information about differences in curricular effectiveness.


2016 ◽  
Vol 12 (5) ◽  
pp. 478-497 ◽  
Author(s):  
Edwin Harold Neave

Purpose The purpose of this paper is to use an equilibrium model to identify the public and private informational requirements for equilibrium pricing and shows that unless these informational requirements are met, skin-in-the-game policies will not be fully effective against moral hazard for banks with relatively large market share. Selling securitizations with recourse can be. Design/methodology/approach The single-period model shows equilibrium prices depend on both public and private information, the latter produced as banks screen loans. If bank has a sufficiently large market share, it can profit by omitting the screening unless investors can detect the change. The author derives the profit function for not screening, shows that a skin-in-the-game policy cannot fully offset its incentives, and proposes a sale with recourse policy that can. Findings To value securitizations correctly, investors require both publicly and privately available information. If investors cannot monitor banks closely, correct pricing can be frustrated by profit maximization incentives, since banks with large market shares can profit from not screening. Skin-in-the-game policies cannot fully offset these incentives. Research limitations/implications The equilibrium model identifies the public and private informational requirements for equilibrium pricing and shows that unless these informational requirements are met, skin-in-the-game policies will not be fully effective for banks with relatively large market share. Selling securitizations with recourse can be more fully effective. Practical implications If it is difficult for investors to obtain private information, skin-in-the-game policies are not provide fully effective remedies against moral hazard. Sales with recourse policies offer promise because they are easy for investors to understand and difficult to evade. Social implications Trading on the basis of private information can create perverse incentives, and appropriate corrective policies can help offset them. Originality/value The general equilibrium methodology, the findings of incentives to avoid screening, the flaws with skin-in-the-game policies, and the proposal for sale with recourse are all new.


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