Search

Using novel shadow bank funding data, I find that shadow banks are funded by the very banks they compete with when originating mortgages. Evidence suggests that banks have market power in the upstream market for shadow banks' funding, which in turn softens mortgage market competition through their strategic behaviors in both markets. I build and calibrate a quantitative model of vertical integration and competition to show that those consumers who would most benefit from shadow bank services are the ones to bear the costs. Secondary market innovation could increase downstream competition by reducing shadow banks' reliance on their competitors. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

This article combines 530 digitized Franchise Disclosure Documents and standard contracts with employer-identified job ads from Burning Glass Technologies to establish stylized facts about franchising labor markets and their relation to the vertical restraints and contractual provisions that limit the autonomy of franchisees vis a vis their franchisors. We report novel findings about the application of vertical restraints like Resale Price Maintenance, Exclusive Dealing, and No-poaching Restrictions, among many others, to a low wage workforce. A legal regime that favors the franchising business model incentivizes franchisees to profit at the expense of workers and to limit egalitarian tendencies operating in the workplace. [ABSTRACT FROM AUTHOR]

I identify a hitherto unrecognized contribution of labor to production stemming from an innate sense of psychological ownership of the fruits of one's labor. This is rooted in the consciousness accompanying all human activities and is distinct from legal ownership. Consciousness is inalienable; it cannot be contracted on. Labor's psychological ownership generates quasi-rents, which can be appropriated by capitalist firms with market power. Monopsony power, now empirically seen to be ubiquitous in labor markets, has more serious efficiency and equity consequences than recognized. In a neoclassical framework, I also show why labor is uniquely vulnerable to exploitation—reconciling it with Marxian views. If capitalist owners are taken to be unaware of their workers' psychological ownership, this exploitation occurs even in competitive labor markets. JEL Classification: P12, J22, J3, J42, D41 [ABSTRACT FROM AUTHOR]

Countries all over the world experienced exceptional inflation rates since 2021 as a consequence of global supply chain disruptions, a post-Covid-19 demand shock, and rising energy costs after the Russian Federation's invasion in Ukraine. Germany is one particularly relevant example, given that the European Union's strongest economy has high anti-inflation sentiments and employs relatively tight fiscal policy but nevertheless suffered the longest from those shocks. This study examines price developments – broken down by various sectors – in Germany and how the additional revenues from these price increases were distributed between capital and labor. Results suggest that the high levels of inflation in 2021-2023 in Germany cannot be explained by the substantial rises in energy prices alone. The analysis of deflators for gross value added indicates that the price increases were heterogeneous across economic sectors with particularly high levels in agriculture, construction, energy supply, as well as services in trade, transport, and hospitality. Profits accounted for 57.6% of nominal gross value added in the most inflation-intensive sectors. This is 32% above the average of the other sectors, indicating that most of the inflation was associated with company profits in the high inflation sectors. The inflation consequently benefited capital owners at the expense of workers who suffered from increased prices without receiving sufficient compensation through higher wages. In terms of policy implications, there is no evidence of a wage-price spiral, but clear evidence that the key contributors of inflation were increased energy prices and corporate profits. [ABSTRACT FROM AUTHOR]

We show that utility tokens can limit the rent‐seeking activities of two‐sided platforms with market power while preserving efficiency gains due to network effects. We model platforms where buyers and sellers can meet to exchange services. Tokens serve as the sole medium of exchange on a platform and can be traded in a secondary market. Tokenizing a platform commits a firm to give up monopolistic rents associated with the control of the platform, leading to long‐run competitive prices. We show how the threat of entrants can incentivize developers to tokenize and discuss cases where regulation is needed to enforce tokenization. [ABSTRACT FROM AUTHOR]

Copyright of Wirtschaft und Wettbewerb is the property of Fachmedien Otto Schmidt KG and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Wirtschaft und Wettbewerb is the property of Fachmedien Otto Schmidt KG and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Are excessively concentrated markets inequitable as well as inefficient? We explore this issue by analyzing the degree of market concentration in the industries where Australia's wealthiest made their fortunes. Compared with the economy at large, we find that top wealth holders have tended to make their fortunes in industries with a higher‐than‐average degree of market concentration. Top wealth shares have grown substantially, and from 1990 to 2020, there appears to have been an increase in the propensity of top wealth holders to make their fortunes in highly concentrated industries. [ABSTRACT FROM AUTHOR]

The topic of pricing non-convexities in power markets has been explored vividly in the literature and among practitioners for the past twenty years. The debate has been focused on indivisibilities in short-term auctions, the computational tractability of some pricing proposals, and the economic analysis of their behavior. In this paper, we analyse a source of non-convexities that is not discussed as broadly: the indivisibilities in investment decisions. The absence of equilibrium that we are primarily concerned about is the long-term equilibrium. We derive a capacity expansion model with indivisibilities and we highlight the issues arising from it. We discuss its relevance and address one particular argument for neglecting indivisibilities in investment, namely market size. We investigate to what extent a capacity market that clears discrete offers can mitigate the lumpiness problem. We particularly introduce the novel concept of convex hull pricing for capacity auctions. We illustrate the main findings with a numerical experiment conducted on the capacity expansion model used by ENTSO-E to assess the adequacy of the entire European system. [ABSTRACT FROM AUTHOR]

John R. Commons' Legal Foundations of Capitalism documented the co-evolution of law and economics. Commons reviewed legal cases that affected economic development. Courts had endorsed emerging business practices unleashing endogenous forces of change. Scarcity was the dominant feature of the pre-industrial economy, but Commons' Stages of Capitalism demonstrated that the economy had evolved to industrial production. As industrialism became more dominant, production was potentially abundant. However, abundance was a source of instability. Stabilized scarcity policies relieving instability were confirmed by the judiciary. Judicial review established judicial sovereignty that Commons called "dictatorship of the courts." Intangible property was legalized. Use value of property was replaced by exchange value. Edicts of the courts could supplant the work of the legislative and executive branches risking a movement toward the fascism of pre-war Italy. The economy continues to evolve. The cutting edge of the economy is knowledge-based production, which is not manufacturing commodities. It is about the design and use of technology for the application of ideas that are built on increasing returns and positive feedback (further sources of instability). Competition is different in these industries where market power is prominent. This will require policies to deal with market power. [ABSTRACT FROM AUTHOR]

The share of wages and salaries in New Zealand's Net Domestic Income fell steadily from 1981 to 2002, with no apparent break in trend coinciding the Employment Contracts Act 1991 (the ECA). However, adjusting the aggregate wage-share measure to control for changes in the size of the employee workforce relative to the total adult population yields a measure that we call [following Pen, J. (1971) Income distribution, translated by T.S. Preston. Allen Lane, the Penguin Press] the Wage Ratio – compensation per employee relative to national income per adult. That ratio, supported by a statistical analysis of its components, highlights the early 1990s as a decisive turning point and shows how the conventionally-measured labour share may fail to identify crucial changes in the balance of power in the labour market. [ABSTRACT FROM AUTHOR]

As an important means for enterprises to acquire technological resources, the impact of mergers and acquisitions on technological innovation and underlying mechanisms deserve in-depth study. Using the merger and acquisition data of A-share listed Chinese companies from 2007 to 2020 in Shanghai and Shenzhen, the causal effects and influence mechanisms between mergers and acquisitions and technological innovation are identified and tested using the Difference-in-Differences method. The study finds that mergers and acquisitions have a long-term, sustained, technological innovation-enhancing effect on firms. Mechanism tests show that mergers and acquisitions can promote the technological innovation of enterprises by improving production efficiency, enriching digital knowledge, and enhancing market power. A heterogeneity analysis shows that the effect of mergers and acquisitions in enhancing technological innovation is more significant when the mergers and acquisitions meet domestic merger and acquisition requirements, when there is a small transaction size, and when the enterprises involved in the mergers and acquisitions are not state-owned. It is suggested that enterprises and the government should use multiple measures, while considering the impact of heterogeneity, to take full advantage of the positive effects of mergers and acquisitions on technological innovation. [ABSTRACT FROM AUTHOR]

Discussions of why corporations should cultivate a diverse workforce emphasize justice- and profit-based reasons. This paper defends a distinct third rationale of legitimacy-based reasons for diversity. I articulate and defend the market power account of firm legitimacy, which holds that private firms, much like governmental institutions, have a moral obligation to justify the power they exercise over stakeholder groups when those groups lack meaningful rights of exit from their relationship with the firm. Firms can discharge this obligation by incorporating moral diversity into managerial teams that decide company policy. Moral diversity confers both epistemic and moral advantages onto teams tasked with solving complex problems that impact disparate stakeholder groups. These advantages confer proceduralist legitimacy onto implemented policies, giving impacted groups reason to accept those policies, even when those groups find those policies objectionable on other grounds. [ABSTRACT FROM AUTHOR]

Background: The beverage industry's role in undermining nutrition-related population health is a growing global concern. Industry strategies that affect policy, science, and public opinion are increasingly exposed. However, those used in the retail space—known as market strategies—remain largely unspecified. The purpose of this study was to uncover the market strategies beverage companies use with US retailers to secure their influence and control in the primary setting where the public purchases their products—food retail. Methods: We conducted a qualitative study based on multiple data sources: 49 interviews with industry insiders, including chain retail managers, independent store owners, and sales representatives and distributors of major food and beverage companies; 15 business files shared by participants, including written beverage marketing agreements and contracts; and 27 purposively sampled, publicly-available industry documents. All data were thematically analyzed. Results: We identified that beverage agreements, which dictate the products, space, marketing, and prices of company products in retail settings, are universal regardless of the retailer's market size. While ubiquitous, the agreement terms, services, and treatment beverage companies provided varied widely—with large US retail chains receiving superior opportunities, such as financial incentives and additional services, and independent and small chain retailers often experiencing disadvantaged, more expensive, non-negotiable terms. Despite this, companies also used several strategies that diminished concerns of differential treatment and thus effectively managed their reputation among independent and small chain retailers. Conclusions: Findings suggest a use of the consolidated power among beverage companies with significant implications for the healthfulness of food retail settings. We conclude by highlighting key policy and legal targets that could be leveraged in the US to address power imbalances in the retailer-beverage company relationship and ultimately shift retail towards promoting public health. [ABSTRACT FROM AUTHOR]

The paper examines predatory pricing in the context of two-sided digital platforms, arguing that traditional tests based on Average Variable Cost (AVC) may be inadequate for these markets. While predatory pricing by dominant firms is prohibited in both EU and US competition law, the current standards may not effectively capture predatory behavior in platform markets characterized by strong network effects and low marginal costs. The paper analyses cases where cross-subsidization between platform sides had predatory elements and resulted in findings of abuse of dominant position. Given platforms' unique characteristics, it proposes a modified test under Article 102 TFEU for super-dominant platforms and those within the scope of Article 3 of Digital Markets Act's scope. The proposal extends the Akzo test by presuming prices below Average Total Cost (ATC) to be abusive, rather than using AVC, with LRAIC as a proxy for ATC. This addresses the current test's limitations for low marginal cost businesses while allowing for objective justification. [ABSTRACT FROM AUTHOR]

Hydrogen production through renewable energy-powered electrolysis is pivotal for fostering a sustainable future hydrogen market. In the electricity sector, hydrogen production bears an additional demand that affects electricity price, and mathematical models are needed for the joint simulation, analysis, and planning of electricity and hydrogen sectors. This study develops a Cournot and a perfect competition model to analyze the links of the electricity and hydrogen sectors. In contrast to other solving methods approaches, the Cournot model is solved by convex reformulation techniques, substantially easing the resolution. The case studies, focusing on the Iberian Peninsula, demonstrate the region's potential for competitive hydrogen production, and the advantages of perfect competition to maximize the use of renewable energies, in contrast to Cournot's oligopoly, where the exercise of market power raises electricity prices. Sensitivity analyses highlight the importance of strategic decision-making in mitigating market inefficiencies, with valuable insights for stakeholders and policymakers. • A Cournot and perfect competition models to analyze the electricity and hydrogen markets are proposed. • Convex reformulation techniques are used for efficient model resolution. • Renewable energy is maximized under perfect competition, while market power exercised under Cournot leads to higher prices. • Case studies on the Iberian Peninsula demonstrate the region's potential for competitive hydrogen production. [ABSTRACT FROM AUTHOR]

Mergers have the potential to give firms access to more data from which to draw insights about consumers. This may help firms to better discern which consumers are price insensitive or captive, or exhibit behavioural biases, that they can exploit by charging them higher prices or nudging them towards higher priced options. Based on recent case precedent, we believe that the transfer or sharing of data or techniques in mergers involving price-discriminating firms may be sufficient for meeting the requirement of merger-specificity without there needing to be an increase in market power. Recent local case precedent also provides insight into when mergers impacting on just a small group of consumers are likely to matter. It suggests that the competition authorities in the country should be more concerned where consumers are vulnerable and where access to the services/products is particularly important to this group. [ABSTRACT FROM AUTHOR]

In this this article I evaluate how authorship of theatre occurred in the Elizabethan and Jacobean periods. I explore whether individual playwrights such as William Shakespeare were viewed as authors, and thus owners, of plays at this time. I analyse the role of the Stationers' Company as print monopolists, and the role of Elizabethan theatre companies, who took ownership of scripts for performance purposes. I examine the impact of the publication of the First Folio. I note that the publishing syndicate behind the First Folio, led by Shakespeare's friends John Heminges and Henry Condell, had to obtain the print rights for several plays, not from Shakespeare's estate, but from the various Stationers who had acquired publishing rights while Shakespeare was alive. Therefore, the First Folio stands as an early example, even before statutory copyright existed, of a book created via what we now describe as the 'clearing' of copyright licences. A consequence of the First Folio was not just the emergence of Shakespeare as the English author-figure par excellence; the First Folio coincided with a rising legal expectation that authors should be owners of dramatic texts under copyright law. Throughout the seventeenth century and into the early eighteenth century I mark how tensions between the market power of the Stationers' Company and emerging recognition of the author's literary property led to the first British copyright statute: the Statute of Anne in 1710. [ABSTRACT FROM AUTHOR]

In the past few years, more and more competition authorities have expanded their powers in conducting market inquiries. Some competition laws have given the competition authorities the power to impose remedies after a market inquiry and to impose fines on undertakings that resist providing information during a market inquiry. Some competition authorities are in the process of amending their laws to mirror this development. The COMESA Competition Commission is an exemplary incident of a competition authority that is amending its law to cloth it with expansive powers in the conduct of market inquiries. This article explores whether or not such expanded powers in a market inquiry are overly intrusive and whether they are consistent with the constitutional and natural justice guarantees. An interrogation on whether there are safeguards to ensure that these powers are not unfettered and do not result in abuse of the rights of those that are subject to this power will also be conducted. [ABSTRACT FROM AUTHOR]

This article advocates against more presumption-based illegality legal standards. The focus is on the Rule of Reason analysis, which is in line with CADE's case laws for analysing unilateral conducts, distinguishing between restraints with an anti-competitive effect (or resulting in conduct likely to cause such injury) that are harmful to the consumer, and restraints stimulating competition that are in the consumer's best interest. In this sense, the article recalls some basic concepts, such as market power, dominant position, concentration indexes, and its interactions, since the recent discussions appear to have forgotten its basics. Moreover, a brief analysis of CADE's procedures and the Brazilian Competition system, especially the analyses of unilateral conduct cases, is made in order to present a background for the readers. At the end, we report three digital antitrust cases judged by Cade to demonstrate the steps used by the authority in order to reach a decision on the case. In a nutshell, CADE has not shifted the analysis of unilateral conduct from the use of the rule of reason to a more presumption-based illegality approach. [ABSTRACT FROM AUTHOR]

This study provides novel evidence on the magnitude of switching costs in auditing. Using a discrete choice approach, we infer switching costs from clients' audit firm choices. The demand estimation reveals that switching costs are significant and vary by direction, with the highest costs associated with switching from non-Big 4 to Big 4 audit firms. Counterfactual analyses of forced switches suggest that switching costs are substantial, ranging from 0.7 billion U.S. dollars (14.2 percent of audit fees) to 1.2 billion U.S. dollars (24.0 percent of audit fees) when aggregated across all clients. Counterfactual analyses of voluntary switching show that the audit market would become highly dynamic and more concentrated if switching costs were removed. Additionally, clients would gain consumer surplus of up to 306 million U.S. dollars (5.4 percent of audit fees) in such a scenario. Overall, our study documents the importance of switching costs for understanding audit market dynamics. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: M42; M48; L11; L84. [ABSTRACT FROM AUTHOR]

We study a large-scale Brazilian loan subsidy program to expand long-term credit. The government subsidizes banks' funding costs for lenders, who then allocate credit to firms at regulated interest rates below a maximum ceiling. We propose and test a mechanism allowing banks to circumvent the rate caps and capture part of the subsidy. We show that when issuing a subsidized loan, lenders with market power use a cross-product pricing strategy, whereby they increase the price of other products to the same client. Our results have important policy implications for the design and effectiveness of government interventions in credit markets. (JEL G21, H81, E43) [ABSTRACT FROM AUTHOR]

How does lending-market competitiveness shape new firms' financing? Using a unique U.S. representative panel of new firms, we document that in more concentrated local lending markets: (a) new firms are less likely to access credit; (b) new firms have lower leverage; and (c) the best-performing firms are more severely affected by reduced debt financing. We develop a contingent-claims model with monopolistically competitive banks that rationalizes these facts and shows how credit-market conditions determine loan fees and concentration. Our findings highlight banks' market power as a channel through which the financial sector influences firms' development and, hence, economic growth. (JEL D82, G21, G32, G34, L26) [ABSTRACT FROM AUTHOR]

We demonstrate a novel link between skilled immigration restrictions, corporate innovation, and industry consolidation. Binding restrictions on H1B visas are a shock to firms' R&D labor supply, leading firms to shift R&D expenditures and employees overseas. Organizationally and financially constrained firms are less able to adjust to the restrictions. They reduce basic research and patenting, are less able to acquire other firms for intellectual property, and are more likely to exit. Industry concentration and firm-level markups increase when firms are better able to adjust. This increase in market power is an unintended consequence of skilled immigration restrictions. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to explain how the dynamics of inter-firm relations between small and large firms can, in the case of some behaviours, be interpreted as inter-organizational bullying. Design/methodology/approach: This paper draws on a qualitative approach adopting the critical incident method to explore the subjective experiences of 13 individual managers and owners of small service businesses in dealing with the representatives/executives of the large corporations they serviced. The method facilitated an investigation of the significant occurrences identified by the small-firm respondents about the undue advantage taken by the large firms. This was found to be more than simple occasional opportunistic or unfair business practices perpetrated by representatives of the large firms but, instead, involved bullying. Findings: The results revealed that large corporations actively, though covertly, sought to take advantage of their small service providers by resorting to bullying practices. Intimidation, opportunism, use of deceitful or unfair business practices, as well as abuse of power, were manifestations of inter-organizational bullying committed by the large and powerful corporations. The contrasting characteristics of size, access to resources, economic and market power were identified as strong impediments against building effective ethical relational exchanges between the large corporations and their small service providers. Research limitations/implications: The study's findings provide valuable insights into the root causes and consequences of inter-organizational bullying. However, it is crucial to interpret these results in the context of this specific study. It is worth nothing that these findings primarily represent the self-perception of inter-organizational bullying among small service providers and may not capture other viewpoints or aspects of the industrial sector. Replicating this study in different sectors could enhance the generalizability of the conclusions drawn. Practical implications: This analysis is valuable in understanding what constitutes the phenomenon referred to as inter-organizational bullying. It also assists to understand the conditions when large firms exhibit such behaviours and their implications on the well-being of relevant stakeholders. Social implications: Firstly, the business partners should maintain a healthy relationship if they want to avoid incidents of bullying, which can harm the performance of the relationship. In doing so, they need to reduce the level of uncertainty in their business relationships through the transparent information exchange, formulating commonly agreeable contracts and enhancing communication procedures. They also need to put aside their self-interest, but rather strive for achieving results that will be beneficial to both parties. Originality/value: This exploratory study offers a novel and unexplored way of theorizing inter-organizational bullying, as well as uncovering its antecedents and impacts on the welfare of small businesses, particularly small service providers. [ABSTRACT FROM AUTHOR]

The study analyzes the impact of competition on environmental and social performance. Based on data collected from 82 banks in the banking industry across nine emerging Middle Eastern and North African (MENA) countries from 2015 to 2021, the results indicate that heightened competitive pressure compels banks to enhance their efforts in environmental and social initiatives. Additionally, a positive correlation is observed between greater Board gender diversity (BGD) and improved environmental and social performance. Finally, the results indicate that the negative impact of market power on environmental and social performance is less pronounced in banks with higher BGD, those operating in countries with a better institutional environment, and in state‐owned banks. In contrast, the negative impact is more pronounced in Islamic banks. Our research findings provide insights into the current discourse on strategic decision‐making in the context of sustainability, shedding light on the benefits associated with competition and gender diversity. [ABSTRACT FROM AUTHOR]

This paper studies publishers' tradeoffs in disclosing information to advertisers in the presence of agencies, through which advertisers may coordinate bids. Studies have shown that agencies in online advertising can exercise their market power over publishers to extract surplus. This may happen in the form of bid coordination where the agencies hold out some ad candidates from publishers' auctions to soften competition, ultimately reducing the publishers' ad revenue. This paper examines the publishers' information disclosure strategies to neutralize agency market power. We show that the publisher's withholding targeting information from agencies is an effective strategic lever to blunt the efficacy of bid coordination, and hence prevent some advertisers from using agencies. Withholding information, however, may also hurt publishers by lowering allocation efficiency. Thus, the publishers' central tradeoff is that disclosing information increases total value created but risks conceding a large share of the value to the agency. We find that for low value of information, publishers "compete" against agencies by withholding information to induce advertisers not to use the agency. If the value of information is high, withholding information becomes too costly for publishers, and they "cooperate" with agencies by disclosing information. History: Anthony Dukes served as the senior editor for this article. Supplemental Material: The online appendix is available at https://doi.org/10.1287/mksc.2023.0039. [ABSTRACT FROM AUTHOR]

Collateral is a significant challenge for small and medium enterprises (SMEs) in acquiring formal credit. Bank market concentration can cause to increase collateral demand through enhancing bank market power. This study explores the relationship between bank market concentration and the collateral challenges faced by SMEs in accessing bank credit by employing a probit regression model. The analysis utilizes a sample of over 25,000 firms from 19 developing Asian nations. The datasets combine firm-level data sourced from the Business Environment and Enterprise Performance Survey (BEEPS) with country-level financial data obtained from the Global Financial Development Data (GFDD) which are provided by the World Bank. The results reveal a significant positive correlation between bank market concentration and the collateral challenges encountered by SMEs in developing Asian countries. In markets characterized by high levels of banking concentration, financial institutions tend to exhibit risk-averse behavior, manifesting in an increased propensity to demand collateral for both SME and large enterprise loans. Consequently, this heightened bank concentration exerts additional pressure on SMEs in acquiring bank credit. To foster an environment conducive to SME financing, countries with high levels of banking concentration should enact regulatory measures aimed at managing and constraining market concentration levels. [ABSTRACT FROM AUTHOR]

Assessing market power in the presence of different production technologies such as renewable energies, including wind and solar power, is crucial for electric market analysis and operation. This paper investigates structural market power by incorporating wind farms and solar generation over a short-term period. The study examines the issue of market concentration boundaries to assess structural market power by calculating the minimum and maximum market concentration index values in the day-ahead market. It models the technical specifications of power plants, such as the maximum and minimum production limits, ramp-up and ramp-down rates, and minimum required up and down times. By extracting the spatiotemporal correlation of wind power generation from real data, the uncertainty of renewable power generation is represented through a set of scenarios. The analysis explores the correlation effects of wind farms, solar generation, and wind penetration levels under different ownership structures. Simulation results using a modified PJM five-bus system illustrate the effectiveness of the developed method. Our results indicate that integrating renewable energy can reduce the Herfindahl–Hirschman Index (HHI) by up to 30% as wind penetration levels rise from 0% to 40%, fostering a more competitive market structure. However, the correlation between wind farms also increases market volatility, with the standard deviation of the HHI rising by about 25% during peak load periods. These findings demonstrate the practical applicability of the developed methodology for assessing market dynamics in the presence of renewable energy sources. [ABSTRACT FROM AUTHOR]

Background and methods: Competition regulation has a strong influence on the relative market power of firms. As such, competition regulation can complement industry-specific measures designed to address harms associated with excessive market power in harmful consumer product industries. This study aimed to examine, through a public health lens, assessments and decisions made by competition authorities in four jurisdictions (Australia, South Africa, the United States (US), and the European Union (EU)) involving three harmful consumer product industries (alcoholic beverages, soft drinks, tobacco). We analysed legal case documents, sourced from online public registers and dating back as far as the online records extended, using a narrative approach. Regulatory decisions and harms described by the authorities were inductively coded, focusing on the affected group(s) (e.g., consumers) and the nature of the harms (e.g., price increases) identified. Results: We identified 359 cases published by competition authorities in Australia (n = 202), South Africa (n = 44), the US (n = 27), and the EU (n = 86). Most cases (n = 239) related to mergers and acquisitions (M&As). Competition authorities in Australia, the US, and the EU were found to make many decisions oriented towards increasing the affordability and accessibility of alcohol beverages, soft drinks, and tobacco products. Such decisions were very often made despite the presence of consumption-reduction public health policies. In comparison, South Africa's competition authorities routinely considered broader issues, including 'Black Economic Empowerment' and potential harms to workers. Conclusion: Many of the competition regulatory decisions assessed likely facilitated the concentration of market power in the industries we explored. Nevertheless, there appears to be potential for competition regulatory frameworks to play a more prominent role in promoting and protecting the public's health through tighter regulation of excessive market power in harmful consumer product industries. [ABSTRACT FROM AUTHOR]

The South African Competition Act was crafted on the basis that it could be used to address distortions and inequalities in the market through enforcing competition. A question which has arisen is whether competition enforcement has been effective given that many economic sectors are still largely dominated by monopolies, duopolies or oligopolies. In this study, I assess whether competition enforcement has reduced inequality in South Africa by studying the link between market power and inequality, following a competition intervention in selected product markets. Using the nonlinear autoregressive distributed lag model, I assess whether competition enforcement in the market for bread, maize meal, and sunflower oil, has been effective in increasing consumer welfare, by lowering income inequality through lower prices. The findings of this study suggest that firms in these markets abuse their market power even post-intervention, such that they can raise prices and reduce consumer welfare, increasing inequality indirectly. [ABSTRACT FROM AUTHOR]

The paper investigates how regulatory policy modulates the complex relationship between market power and bank lending. The empirical evidence is based on the seemingly unrelated panel regressions by employing a dataset of 52 African countries for the period, 2006–2018. The study finds a U-shaped relationship between market power and bank lending. The study shows that the estimated thresholds fall within the range of -4.38 to 9.67 of market power. It observes that the thresholds of market power in countries with stringent regulatory policies are relatively greater than countries operating in low regulatory policy regimes. The study shows a negative and direct effect of market power on lending. In the light of interactions, the conditional effects are estimated to provide meaningful interpretations. This is relevant to policymakers because our established conditional effects, imply that regulatory policy is a sufficient complementary condition for reducing the negative effect of market power on bank lending. [ABSTRACT FROM AUTHOR]

This is the first study to investigate whether country institutional quality influences the impact of supervisory power on insurer soundness. It tests the hypothesis arguing that institutional quality enhances the implementation capacity of supervisors versus the one that maintains that institutional quality mitigates the impact of supervisory power on insurer soundness, particularly when this effect is negative. An analysis is carried out on firms operating in the insurance markets of 12 Muslim-populous countries over the eight-year sample period 2009–2016. As a proxy of insurers' financial stability, we use the Z-score and conduct the study by employing the two-step system generalised method of moments. We find a negative impact of supervisory power on insurer soundness—exercised by increasing portfolio risk—that is mitigated by national institutional quality, in particular by government effectiveness, regulatory quality and control of corruption. The findings emphasise the view that national institutional quality avoids private use of supervision. [ABSTRACT FROM AUTHOR]

We examine how the erosion of morals, norms, and norm compliance in markets depends on the market power of individual traders. Previously studied markets allow traders to exchange at most one unit and provide market power to individual traders by de-activating two forces: (i) the replacement logic, whereby immoral trading is justified by the belief that others would trade otherwise and (ii) market selection, by which the least moral trader determines aggregate quantities. In an experiment, we compare single-unit to (more common) multi-unit markets, which may activate these forces. Multi-unit markets, in contrast to single-unit markets, lead to a complete erosion of morals. This is associated primarily with a deterioration in norm compliance: the observed level of immoral trade is in contrast with the prevailing social norm. The replacement logic is the main mechanism driving this finding. [ABSTRACT FROM AUTHOR]

Feta cheese is a Greek product under Protection Designation of Origin (PDO), benefiting its producing regions with its marketing potential. However, farmers are evidently often excluded from this value chain. This study aims at understanding the opportunities farmers in Greece have for supply chain arrangements (SCAs) that ensure fair market participation. It uses a two-step latent class analysis on data from a farm survey to explore and classify farmer–cheesemaker SCAs based on their perceived characteristics, farmers' satisfaction, availability of alternative options and farmers' sustainability objectives. Results highlight the importance of collective arrangements, economic incentives and price formulation mechanisms in forming farmer-inclusive SCAs. [ABSTRACT FROM AUTHOR]

China is the world's largest importer of logs, possessing the scale to exert significant influence in the international market. This paper uses a fixed-effect variable coefficient Pricing-to-Market panel model to measure China's market power in log import trade. It also utilizes the Almost Ideal Demand System model from an elasticity perspective to explore the market behavior characteristics of various source countries in China's log import trade, thereby validating the mechanism of market power. The results indicate that: ① China's main trading partners can be categorized into four groups according to their market power in the log import trade. Specifically, China holds superlative market power in log imports from Indonesia, Malaysia, and Myanmar; holds strong market power in log imports from Russia, the Democratic Republic of the Congo, and Mozambique; holds weak market power in log imports from Papua New Guinea, Equatorial Guinea, France, Germany, Australia, and New Zealand; and holds no market power in Japan, Cameroon, and the United States. ② As China's expenditure on log imports increases, there is a tendency to purchase high-quality precious wood and a greater concern for the legality of market transactions. Consequently, China is anticipated to augment its imports from source countries with no or weak market power. ③ The simple price elasticity of log imports from each source country is negative. Source countries with stronger market power tend to increase prices to achieve higher total revenue, while those with weaker market power are more inclined to lower prices to achieve the same. ④ Log products from various source countries are complementary in the Chinese market, indicating that China's substantial demand for logs relies on the simultaneous supply from multiple countries and diverse wood types. Based on the existence or absence of market power in China's log import trade, this paper provides targeted insights into enhancing international market power and reducing trade losses. [ABSTRACT FROM AUTHOR]

Purpose: The integration of e-commerce platforms and artificial intelligence (AI) into the marketing channel ecosystem is challenging the explanatory capacity of traditional channel power theories, indicating a significant yet unaddressed research gap concerning the impact of these digital entities and AI on channel power exercise dynamics. This study adopts a contingency perspective to critically revisit how e-commerce platforms exercise channel power and the ensuing effects on channel conflicts. The purpose of this study is to extend the boundaries of traditional channel power theories, enhancing their relevance in today's digital marketplace. Design/methodology/approach: Building on channel power theories, the authors developed a framework tested with survey data collected from 262 sellers. This framework incorporates three key contingent variables: inter-platform competition, AI capabilities and platform value co-creation. Regression analysis was used to perform the analyses. Findings: This study finds that intense inter-platform competition mitigates the (positive) negative relationship between platform channel power and the exercise of (non-) coercive power. Moreover, a platform's AI capabilities and value co-creation activities diminish the potential for channel conflicts induced by the exercise of coercive power. AI capabilities can also strengthen the negative relationship between the exercise of non-coercive power and channel conflicts. Originality/value: This study contributes to the advancement of traditional channel power theories by integrating contemporary digital elements like AI and platform dynamics. This study provides theoretical and practical insights on navigating channel power in modern marketing environments, offering strategic guidelines for optimizing channel relationships. [ABSTRACT FROM AUTHOR]

Copyright of Automotive Digest is the property of Automotive Digest Editorial Office and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This article investigates the effects of banking integration on banking competition in the ASEAN‐6 countries. Using a data set of 3217 bank‐year observations over the period 1996–2018, our main results indicate that: (i) banking openness positively affects banking competition; (ii) the overall degree of balanced (in/out) integration leads to greater market power; and (iii) the increase in the market monopoly following the participation of foreign banks can be reduced by good regulatory policies. These results remain intact when two alternative competition measures are employed and when a polynomial model and a threshold model are used to reveal the non‐linear and heterogeneous effects of banking integration. [ABSTRACT FROM AUTHOR]

Abstract Background The beverage industry’s role in undermining nutrition-related population health is a growing global concern. Industry strategies that affect policy, science, and public opinion are increasingly exposed. However, those used in the retail space—known as market strategies—remain largely unspecified. The purpose of this study was to uncover the market strategies beverage companies use with US retailers to secure their influence and control in the primary setting where the public purchases their products—food retail. Methods We conducted a qualitative study based on multiple data sources: 49 interviews with industry insiders, including chain retail managers, independent store owners, and sales representatives and distributors of major food and beverage companies; 15 business files shared by participants, including written beverage marketing agreements and contracts; and 27 purposively sampled, publicly-available industry documents. All data were thematically analyzed. Results We identified that beverage agreements, which dictate the products, space, marketing, and prices of company products in retail settings, are universal regardless of the retailer’s market size. While ubiquitous, the agreement terms, services, and treatment beverage companies provided varied widely—with large US retail chains receiving superior opportunities, such as financial incentives and additional services, and independent and small chain retailers often experiencing disadvantaged, more expensive, non-negotiable terms. Despite this, companies also used several strategies that diminished concerns of differential treatment and thus effectively managed their reputation among independent and small chain retailers. Conclusions Findings suggest a use of the consolidated power among beverage companies with significant implications for the healthfulness of food retail settings. We conclude by highlighting key policy and legal targets that could be leveraged in the US to address power imbalances in the retailer-beverage company relationship and ultimately shift retail towards promoting public health.

Abstract Background and methods Competition regulation has a strong influence on the relative market power of firms. As such, competition regulation can complement industry-specific measures designed to address harms associated with excessive market power in harmful consumer product industries. This study aimed to examine, through a public health lens, assessments and decisions made by competition authorities in four jurisdictions (Australia, South Africa, the United States (US), and the European Union (EU)) involving three harmful consumer product industries (alcoholic beverages, soft drinks, tobacco). We analysed legal case documents, sourced from online public registers and dating back as far as the online records extended, using a narrative approach. Regulatory decisions and harms described by the authorities were inductively coded, focusing on the affected group(s) (e.g., consumers) and the nature of the harms (e.g., price increases) identified. Results We identified 359 cases published by competition authorities in Australia (n = 202), South Africa (n = 44), the US (n = 27), and the EU (n = 86). Most cases (n = 239) related to mergers and acquisitions (M&As). Competition authorities in Australia, the US, and the EU were found to make many decisions oriented towards increasing the affordability and accessibility of alcohol beverages, soft drinks, and tobacco products. Such decisions were very often made despite the presence of consumption-reduction public health policies. In comparison, South Africa’s competition authorities routinely considered broader issues, including ‘Black Economic Empowerment’ and potential harms to workers. Conclusion Many of the competition regulatory decisions assessed likely facilitated the concentration of market power in the industries we explored. Nevertheless, there appears to be potential for competition regulatory frameworks to play a more prominent role in promoting and protecting the public’s health through tighter regulation of excessive market power in harmful consumer product industries.

The current paper aims to explain the role of banks' market power in creating liquidity during an oil price shock. The sample population of this study includes Iran's commercial and specialized banks whose information is available from 2011 to 2021. To test the research hypotheses based on the multiple regression method, the data were analyzed using Eviews 10 software after checking the data's validity and the regression analysis assumptions. The Lerner index was used to measure the bank market power variable as the research's independent variable. The inverted index of stable funding net ratio based on Basel 3 liquidity requirements was used to measure the study's dependent variable, liquidity creation. Furthermore, the negative changes in oil prices were considered oil price shocks, which is the moderating variable of the present study. The results showed that bank market power has a positive and significant effect on the creation of bank liquidity at the confidence level of 90%, which means that with a high market power, banks tolerate more liquidity risk. Besides, the results indicate that the oil price shock has a negative and significant effect on bank liquidity creation at the level of 90%; Oil price shock does not influence the relationship between bank market power and liquidity creation. Therefore, banks with high market power tolerate more liquidity risk, and market power can significantly impact economic growth through its effect on creating liquidity. [ABSTRACT FROM AUTHOR]

Artificial intelligence (AI) technologies are engaged in a harsh battle for market dominance. This article examines the emergence of a dominant design in terms of technology, service, and business model innovation. We conduct a theoretical synthesis of the literature on industrial organization, technology management, network economics, operations management, and strategic management—with the implications of each theory related to the dominant-design battle in AI. The findings indicate a dominant design for AI will be based on innovation concerning business models as much as on technology, and that the dominant business model will include AI as a service. [ABSTRACT FROM AUTHOR]

Over the last couple years, the world has experienced the highest levels of inflation in more than four decades. This paper provides a framework for analyzing the causes and the appropriate responses. We show that it is not caused by an excess of aggregate demand, and in particular, not caused by any excess consumption arising from excessive pandemic spending, but by supply-side shocks, largely induced by the pandemic (e.g., chips), and also by the war in Ukraine, combined with sectoral demand shifts. We analyze the role played by market power and the lack of resilience. Increases in interest rates, beyond normalizing levels, will do little to address the underlying problems and may exacerbate them, impeding effective responses to supply shortages. The paper describes alternative fiscal and other measures that, while addressing current inflation, have further long-term welfare benefits. [ABSTRACT FROM AUTHOR]

Farmers have little market power and improving their market positions can be achieved by organizing and implementing joint marketing activities. Joint marketing activities contribute to addressing the market challenges faced by Bulgarian farmers. The purpose of the article is to propose a model for organizing and conducting joint marketing activities. Implementation of joint marketing activities can only be achieved if successful management models are developed in agribusiness. The correct design of the interaction between independent agricultural holdings requires the construction of relevant structures to which specific rights and responsibilities for the implementation of joint marketing activities will be delegated. The activities themselves are implemented through the management functions - planning, organizing, implementation, and control.

The ability to substitute goods and services is crucial for maintaining market stability during price fluctuations, particularly in the livestock market, where products are interchangeable. This study aimed to analyse market integration and asymmetric price transmission concerning livestock commodity prices in Thailand. Specifically, it focused on beef cattle, swine, broiler chicken, and chicken egg prices, using time-series data from January 2011 to December 2022. The analysis employed unit root tests to check if the time series data were stationary, Granger causality tests to determine the direction of relationships among livestock prices and an asymmetric price transmission model to examine short-term asymmetry and adjustment in cross-commodity prices. The findings indicate three directions of price integration in Thailand’s livestock market: from broiler chicken price to chicken egg price, from swine price to chicken egg price, and from swine price to broiler chicken price. The results suggest that price transmission in Thailand is symmetrical, demonstrating an efficient interdependent relationship. Thus, the findings indicate that chicken eggs are a substitute for broiler chickens and swine when prices fluctuate, while broiler chickens are a substitute for swine. The results reveal that chicken eggs can replace swine consumption more effectively than broiler chickens within Thailand. This study highlights that chicken eggs are the most effective substitute during livestock price fluctuations in Thailand, with broiler chickens being the second most effective. Consequently, stakeholders in the livestock supply chain, such as policymakers, entrepreneurs, and farmers, should understand the integration of different commodities and price transmission in Thailand’s livestock market. To guarantee market stability, stakeholders should manage the demand and supply of livestock commodities and acquire chicken eggs and broiler chickens during significant fluctuations in domestic livestock commodity prices

Accurate load forecasting, especially in the short term, is crucial for the safe and stable operation of power systems and their market participants. However, as modern power systems become increasingly complex, the challenges of short-term load forecasting are also intensifying. To address this challenge, data-driven deep learning techniques and load aggregation technologies have gradually been introduced into the field of load forecasting. However, data quality issues persist due to various factors such as sensor failures, unstable communication, and susceptibility to network attacks, leading to data gaps. Furthermore, in the domain of aggregated load forecasting, considering the potential interactions among aggregated loads can help market participants engage in cross-market transactions. However, aggregated loads often lack clear geographical locations, making it difficult to predefine graph structures. To address the issue of data quality, this study proposes a model named adversarial graph convolutional imputation network (AGCIN), combined with local and global correlations for imputation. To tackle the problem of the difficulty in predefining graph structures for aggregated loads, this study proposes a learnable adjacency matrix, which generates an adaptive adjacency matrix based on the relationships between different sequences without the need for geographical information. The experimental results demonstrate that the proposed imputation method outperforms other imputation methods in scenarios with random and continuous missing data. Additionally, the prediction accuracy of the proposed method exceeds that of several baseline methods, affirming the effectiveness of our approach in imputation and prediction, ultimately enhancing the accuracy of aggregated load forecasting. [ABSTRACT FROM AUTHOR]

AbstractThere has recently been a burgeoning interest in private rental housing, yet few studies have addressed the tenant/landlord relationship as lived. This paper contributes related insights from the ‘young’ markets of Eastern Europe where the tenant/landlord relationship is entirely market based but embedded in specific cultural norms and supply/demand balances. Drawing on cultural theories of risk and rich qualitative data from tenants and landlords in Romania, this paper examines narratives of risk and repertoires of risk mitigation practices of the relational risks of renting. Findings portray a supply-rich market where tenants have market power hence financial checks on tenants are socially unacceptable, evictions are rare, and most tenants feel at home in their rented properties. In this tenant market, landlords rely on the social vibe of the first tenant/landlord encounter, showing openness to construct win-win collaborations. These less institutionalised practices seem more inclusive to tenants’ economic unpredictability but high rents push the poor, and ethnic stigmatisation drives the Roma ‘others’ into alternative housing. [ABSTRACT FROM AUTHOR]

Zooming in on the European Union's international identity, this paper argues that maturation, and the achievement of a solid international identity, may result from a process in which different identity traits are integrated, even strategically incorporated. It frames this hybridisation argument in terms of Dragon Power Europe and proceeds in two steps. In a first step, the paper develops an integrated analytical framework for studying the European Union's international identity by comparing the Normative Power Europe and Market Power Europe conceptualisations along three dimensions, namely drivers, actions and impact. In a second step, the paper demonstrates the framework's empirical value through an exploration of the European Union's functioning in relation to health information standardisation, investigating the logics behind the inclusion of a new chapter on diagnoses and syndromes associated with Traditional (Chinese) Medicine in the eleventh revision of the World Health Organization's International Classification of Diseases in 2019. The involvement of the European Union and its member states in this specific case of health (information) standardisation shows initial but compelling evidence of NPE-MPE dynamics shaping the EU's international functioning, in particular its drivers, actions and impact. [ABSTRACT FROM AUTHOR]