Recalibrating the governance of remedial clauses in contract law

2020 ◽  
Vol 71 (3) ◽  
pp. 429-455
Author(s):  
Moshood Abdussalam
Keyword(s):  
Big Data ◽  
Market Power ◽  
Contract Law ◽  
Market Structures ◽  
Modern Times ◽  
Oligopolistic Market ◽  
Commercial Networks

Yawning gaps in bargaining powers between transacting parties have always been a source of concern in commercial relations and the legal governance of such relations. In modern times, the likely implications of gaps in bargaining powers are not only palpable as it concerns the affairs of transacting parties with weaker bargaining powers, but also on the welfare of society, at large. That is particularly so in this milieu of pervasive oligopolistic market structures, organised commercial networks, digitisation, and big data. The imperative to guard against the use of contractually agreed remedial clauses to consolidate market power and as tools for wealth extraction is the concern of this article. To this end, this article makes a case for a recalibration of the rule against penalties in contract law.

The potential of entry barriers in the context of digitalization

2021 ◽  
Vol 21 (1) ◽  
pp. 128-147
Author(s):  
Aleksey Zazdravnykh
Keyword(s):  
Big Data ◽  
Market Power ◽  
Network Effects ◽  
Economies Of Scale ◽  
Digital Transformation ◽  
Entry Barriers ◽  
Barriers To Entry ◽  
Significant Growth ◽  
Digital Infrastructure ◽  
Market Operation

The article analyzes the practical aspects of the functioning of some barriers to entry in the era of digital transformation of industry markets. It is noted that under the influence of digitalization processes, both positive changes in the mechanism of market operation are recorded, as well as a number of negative circumstances that have become a serious challenge for antitrust agencies. Control of big data, initial investment in digital infrastructure, and broad technological capabilities of digital blocking of users, against the background of powerful network effects and pronounced economies of scale, carry the potential for significant growth in the market power of individual firms. The article substantiates that such trends theoretically pose a significant threat to competition, and can form new types of entry barriers. At the same time, practical arguments are presented that indicate the ambiguity of this position.

scholarly journals Market Concentration and Market Power / Koncentrisanost tržišta i tržišna moć

2015 ◽  
Vol 5 (5) ◽  
pp. 228
Author(s):  
Aleksandar Bogojević
Keyword(s):  
Adverse Effects ◽  
Market Power ◽  
Economic Efficiency ◽  
Free Market ◽  
Market Competition ◽  
Well Being ◽  
Market Concentration ◽  
Relevant Market ◽  
Market Structures ◽  
Market Participants

Contemporary directions of the market liberalization should lead to a bigger number of market participants and to a bigger degree of competition among them. This again, leads to a more diversified offer and to bigger quality products along with higher level of services with cheaper rates. In order to control the mentioned processes, analysis of market concentration is needed, as well as studying and perfection of the methods that allow measurement of market concentration. The degree of market concentration which on a specific market one or more economic subjects have is defined as ‘’market power’’. Economic efficiency on a specific market largely depends on whether non competitive market structures which produce adverse effects on economic efficiency are existent on that market, which ultimately affects on the overall well – being. Conversance of the degree of concentration of a specific (relevant) market is important so that breaching of the market principles can be timely spotted and so that appropriate measures can be taken. Supervision over the market and the market processes, as well as appliance of specific measuring methods of market concentration have the goal of establishing and maintenance of free market competition in which all of the economic subjects participate under the same conditions.

scholarly journals Markets: The U.S. Lodging Industry

2006 ◽  
Vol 20 (4) ◽  
pp. 203-218 ◽  
Author(s):  
Arturs Kalnins
Keyword(s):  
Descriptive Statistics ◽  
Lodging Industry ◽  
Ownership Concentration ◽  
Fixed Costs ◽  
Behavioral Norms ◽  
Market Structures ◽  
Competition And Cooperation ◽  
Oligopolistic Market ◽  
Price Cutting ◽  
The U.S

The U.S. lodging industry appears highly competitive. Ownership concentration appears to be low. Fixed costs are high relative to variable costs and unused rooms cannot be stored for future sale, so price-cutting should be attractive. However, this paper argues that, unexpectedly, oligopolistic market structures in many local lodging markets, combined with behavioral norms of cooperation, sustain profits in what might otherwise be an industry of cutthroat competition. I describe the patterns of competition and cooperation in the U.S. lodging industry, summarizing theoretical arguments, empirical research, descriptive statistics from industry and government sources, and anecdotal evidence from the trade press and from interviews conducted with managers of over 200 properties nationwide.

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