Understanding competition in digital markets: new perspectives on old practices

2021 ◽  
Vol 20 (3) ◽  
pp. 139-145
Author(s):  
Andrew Mell ◽  
Gareth Shier
Keyword(s):  
Economic Theory ◽  
Industrial Organization ◽  
Competition Policy ◽  
Business Practices ◽  
Policy Tools ◽  
Digital Ecosystems ◽  
Online Platforms ◽  
Ex Post ◽  
The World ◽  
Ex Ante

Around the world, competition agencies and academics alike have raised concerns that the existing suite of policy tools and economic theory fail to capture all of the harms that can arise in digital markets. At the same time, other academics and practitioners consider that competition policy and industrial organization is unable to account for many of the benefits that online platforms and digital ecosystems can bring. As a range of new interventions – ranging from strengthened ex-post enforcement tools to new ex-ante regulations – are being proposed, we ask which view is right? Are the business practices observed in digital markets and targeted by these reforms so obviously harmful that they are deserving of a return to form-based prohibitions in place of effects-based analysis? Or does this represent an unhelpful regression, based on a misunderstanding of how these new types of markets function?

scholarly journals Risk-Sharing and the Creation of Systemic Risk

2020 ◽  
Vol 13 (8) ◽  
pp. 183
Author(s):  
Viral V. Acharya ◽  
Aaditya M. Iyer ◽  
Rangarajan K. Sundaram
Keyword(s):  
At Risk ◽  
Systemic Risk ◽  
Risk Sharing ◽  
Lender Of Last Resort ◽  
Financial Innovations ◽  
Correlated Failures ◽  
Ex Post ◽  
The World ◽  
Ex Ante ◽  
Aggregate Risks

We address the paradox that financial innovations aimed at risk-sharing appear to have made the world riskier. Financial innovations facilitate hedging idiosyncratic risks among agents; however, aggregate risks can be hedged only with liquid assets. When risk-sharing is primitive, agents self-hedge and hold more liquid assets; this buffers aggregate risks, resulting in few correlated failures compared to when there is greater risk sharing. We apply this insight to build a model of a clearinghouse to show that as risk-sharing improves, aggregate liquidity falls but correlated failures rise. Public liquidity injections, for example, in the form of a lender-of-last-resort can reduce this systemic risk ex post, but induce lower ex-ante levels of private liquidity, which can in turn aggravate welfare costs from such injections.

R&D Competition, Cooperation, and Microeconomic Policies

2016 ◽  
pp. 195-218
Author(s):  
Rafael Moner-Colonques ◽  
Jose J. Sempere-Monerris
Keyword(s):  
Joint Ventures ◽  
Competition Policy ◽  
Research Networks ◽  
External Effects ◽  
Competitive Edge ◽  
Ex Post ◽  
Industry Performance ◽  
Ex Ante ◽  
Research Joint Ventures ◽  
Good Nature

This chapter aims to contribute to the better understanding of R&D by scholars and practitioners. It includes a first section where the concept of innovation is defined and its public good nature and cumulative dimension are analysed. Next, the incentives that firms have to undertake R&D to attain a competitive edge upon rivals are considered. This entails the consideration of both ex ante and ex post incentives to undertake R&D. Since innovation is costly and derives important external effects, cooperation in R&D activities is prominent in several industries where firms enter into research joint ventures, or form research networks. The effect of cooperation is that, under some circumstances, the industry performance is better as compared to full competition. The final section addresses the complementarities and conflicts among the different microeconomic policies (trade, industrial and competition policy) faced by governments when considering the support of R&D activities.

Das Leistungsschutzrecht für Presseverleger: Eine ordnungspolitische Perspektive

2012 ◽  
Vol 61 (1) ◽  
Author(s):  
Torben Stühmeier
Keyword(s):  
Economic Theory ◽  
Interest Groups ◽  
Point Of View ◽  
Economic Effects ◽  
New Right ◽  
Online Environment ◽  
German Press ◽  
Ex Post ◽  
The Press ◽  
Ex Ante

AbstractSince the beginning of the year 2009 the German press publishers have lobbied for their own neighbouring right which should protect even short snippets of online press articles. The new right should basically protect the press publishers’ investments in the online environment. Currently there is an intensive debate among several involved interest groups about the expected effects of such a right. The present article aims to sheds some light on the expected economic effects. It states that a neighbouring right is not sufficiently justified by economic theory and can distort efficiency both from an ex ante and an ex post point of view.

scholarly journals Global Coordination against Global Warning: “Catch-up” Countries against Affluent Countries

2017 ◽  
Vol 2 (1) ◽  
pp. 82
Author(s):  
Jan-Erik Lane
Keyword(s):  
Climate Change ◽  
Policy Making ◽  
Time Frame ◽  
Ex Post ◽  
Global Warning ◽  
The World ◽  
Ex Ante ◽  
Long Time ◽  
Catch Up ◽  
Global Coordination

<p><em>The UNFCCC has delivered the COP21 project as the main response to climate change, promising radical decarbonisation of the country economies in the world. A promise is merely a verbal commitment ex ante, whereas the outcomes of policy-making and government coordination inform about the actual matters of fact ex post. Scholars now fear that there will be reneging or defection in the COP21 games to be started now with a long time frame into the next half of this century. Thus, world famous Stern (2016) asks what we are waiting for, given his stern warnings already in 2007. And Conca (2015) suggests that environmentalism and climate change becomes the chief task for the United Nations, on par with peace, security, human rights and development. Star economist Sachs (2015a, b, c) promotes the idea of linking anti-global warming policies with general </em><em>S</em><em>ustainable </em><em>D</em><em>evelopment (SDGs), including anti-poverty policies. Yet, they bypass fundamentals: climate change is driven by Juggernaut forces, namely the links between GDP, energy consumption and greenhouse gases involving the economic struggle between the haves and have-nots. The challenges in implementing the COP21 goals (I+III) are formidable.</em></p>

scholarly journals Net Neutrality Regulation: Much Ado about Nothing?

2018 ◽  
Vol 17 (3) ◽  
pp. 225-243 ◽  
Author(s):  
Ingo Vogelsang
Keyword(s):  
Competition Policy ◽  
Net Neutrality ◽  
Specific Content ◽  
Much Ado About Nothing ◽  
Ex Post ◽  
Ex Ante ◽  
Price Rule ◽  
Economic Analyses ◽  
The Cost

Abstract The economics literature on Net Neutrality (NN) has been largely critical of NN regulation on the basis of theoretical findings that NN violations can be both welfare improving and welfare deteriorating, depending on the circumstances of the case in question. Thus, an ex post competition policy approach would be preferable to a strict ex ante prohibition of NN violations. In contrast, the current paper argues that NN regulation is largely ineffective, in particular, when it comes to the prohibition of fast lanes and other quality of service (QoS) differentiations, and to a lesser extent, when it comes to the zero price rule. NN regulation is only effective in preventing the blocking of specific content and in preventing the favoring of ISP owned content and in preventing some price discriminations. These are also areas where NN regulations are more likely to be welfare-enhancing. Where they are ineffective, NN regulations are likely to create inefficiencies through the cost and allocative inefficiencies caused by NN bypass. The paper ends with a call for theoretical and empirical economic analyses of NN circumvention techniques.

Evolution of Antimonopoly Policy in Russia: Problems and Prospects

2005 ◽  
pp. 117-131
Author(s):  
N. Rozanova
Keyword(s):  
Industrial Organization ◽  
Competition Policy ◽  
Ex Ante ◽  
Reasonable Approach ◽  
Policy Transformation ◽  
Positive Nature

The evolution of antimonopoly policy in Russia is analyzed. The positive nature of policy transformation is stressed: it has been evolving from purely prohibitive measures towards monopolies in the 1990s to a more reasonable approach in terms of recommendations and ex ante regulations. Russian antimonopoly policy is being transformed to competition policy with broader view on inter-firms interactions and industrial organization.

Ex ante or ex post competition policy? A progress report

2011 ◽  
Vol 29 (3) ◽  
pp. 356-359 ◽  
Author(s):  
Marco Ottaviani ◽  
Abraham L. Wickelgren
Keyword(s):  
Competition Policy ◽  
Progress Report ◽  
Ex Post ◽  
Ex Ante

Small Industry, Gimmicks and Moscow Statistics, or How the Small Russian Enterprise Came into the World (Russian Physiological Sketch, 1830-1840)

2009 ◽  
pp. 123-129
Author(s):  
Yu. Golubitsky
Keyword(s):  
Small Businesses ◽  
Statistical Data ◽  
Russian Enterprise ◽  
Small Enterprises ◽  
Business Practices ◽  
Way Of Life ◽  
The World ◽  
Small Industry ◽  
Xix Century

The article considers business practices of Moscow small industry in the XIX century, basing upon physiological sketches of N. Polevoy and I. Kokorev, statistical data and the classification of professions are also presented. The author claims that the heroes of the analyzed sketches are the forefathers of Moscow small businesses and shows what a deep similarity their occupations and a way of life bear to the present-day routine existence of small enterprises.

Ex-Ante and Ex-Post Performance of Optimal REIT Portfolios

CFA Digest ◽  
2003 ◽  
Vol 33 (3) ◽  
pp. 8-9
Author(s):  
Ann C. Logue
Keyword(s):  
Ex Post ◽  
Ex Ante

'Restrictive Business Practices', report by the UNCTAD Secretariat, April 1972.

1973 ◽  
Vol 12 (3) ◽  
pp. 315-316
Author(s):  
G. M. Radhu
Keyword(s):  
Multinational Corporations ◽  
World Trade ◽  
Developed Countries ◽  
Business Practices ◽  
Less Developed Countries ◽  
International Firms ◽  
The World ◽  
The Sixties ◽  
Financial Power ◽  
Administrative Structures

The report by the UNCTAD Secretariat, submitted to the third session of the United Nations Conference on Trade and Development held in Santiago (Chile) in April 1972, deals with the restrictive business practices of the multinational corporations with special reference to the export interests of the developing countries. Since the world war, there has been a tremendous growth in the size and activities of many international firms. They have grown from the national corporation to the multidivisional corporation and now to the multinational corporation. With each step they acquired greater financial power, better technology and know-how and more complex administrative structures. They have subsidiaries and branches all over the world. In the course of the sixties they became one of the dominant factors in determining the pattern of world trade. At the same time, their increasingly restrictive business practices, which tended to adversely affect world trade and the export interest of less developed countries, attracted the attention of the governments both in developed and less developed countries and serious concern was shown at the international level. It is against this background that the UNCTAD undertook the study on the question of restrictive business practices.

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