Market Definition Research Articles

Categorical Definition of the Digital Financial Assets Market in the Context of Comparative Analysis with the Traditional Financial Market

Categorical Definition of the Digital Financial Assets Market in the Context of Comparative Analysis with the Traditional Financial Market

Implied Market Shares and Antitrust Markets as Fuzzy Sets

Market definition is an important aspect of antitrust analysis, but the exercise requires designating each potentially relevant good as either completely in or out of the market. In a market with differentiated goods, this often necessitates making unsatisfactory designations. This article introduces the concept of the antitrust market as a fuzzy set, where each relevant good can have a degree of membership in the market, rather than only the traditional binary in or out designation. A product’s degree of membership in the market is assigned based on its closeness of substitutability to the focal products. We then show how implied market shares can be calculated from a defined fuzzy antitrust market. We illustrate an implementation of these concepts using data from the grocery retail market and demand estimations from prior literature. We also discuss how this concept serves as a middle way between supporters and detractors of market definition, as implied market shares are objects that not only reflect demand substitutability but also allow for the rhetorical benefits of having delineated a market to focus discussion and analysis of competitive issues.

Amazon/iRobot: harbinger of legal dissonance, or lesson in unintended consequences?

This article examines the process that resulted in the abandonment of Amazon’s proposed acquisition of iRobot in light of the Statement of Objections issued by the European Commission and the substantive provisions of the newly enacted Digital Markets Act. It questions whether the Commission could have credibly challenged the deal on the basis of concerns that Amazon may have had the ability and incentive to engage in certain potentially harmful conduct that would already, to a not insignificant extent, have been prohibited ex ante under the Digital Markets Act. While a more vigilant approach to merger control may be warranted in response to perceived historical underenforcement, intervention motivated by the increasingly popular sentiment that competition in digital markets is suffering a ‘death by a thousand cuts’ should be underpinned by a cogent theory of harm. Insights may be drawn from an emergent ecosystem theory, which seeks to refocus the lens of competition law from narrow market definition to capture a broader network of complementors. However, it is suggested that the decimation of iRobot precipitated by regulatory over-reach stands in diametric opposition to the broad objectives espoused, in particular, by a new generation of competition officials. Ultimately, this article questions whether the outcome of the Commission’s investigation in Amazon/iRobot stands as a harbinger of legal dissonance, or a lesson in unintended consequences.

A Study on the Issue of Market Definition in the Game Platform: Focusing on the Case between Epic and Apple

A Study on the Issue of Market Definition in the Game Platform: Focusing on the Case between Epic and Apple

Research on the Challenges and Improvement Strategies of Relevant Market Definition in Platform Economy

Research on the Challenges and Improvement Strategies of Relevant Market Definition in Platform Economy

Market concentration and productivity: evidence from the UK

AbstractWe measure product market concentration and business dynamism in the UK from 1997 to 2020 and study the relationship with productivity. Our results show that concentration in the UK is increasing among narrow industries on average, but for a broad market definition, concentration and business dynamism are stable. We find a negative relationship between concentration and productivity for the average firm, but a positive relationship for the average worker. This occurs because higher industry concentration is associated with better allocative efficiency, measured by the proportion of workers in higher‐productivity firms.

Measuring competition in primary care-Evidence from Sweden.

In many tax-based healthcare systems, policymakers have introduced reforms that promote provider competition with the intention of improving the quality and efficiency. Healthcare competition is usually defined spatially, with local markets often being identified as a circle around each provider. We argue that existing local market definitions can be improved to better capture actual local markets. For pro-competition reforms to potentially lead to the gains envisioned by policymakers, a crucial condition is the actual emergence of competitive markets. However, limited research has been conducted on competition in primary care markets, despite primary care constituting a vital part of a healthcare system. The study aims to contribute to the debate on how to define local markets geographically and to examine provider competition in Swedish primary care. A cross-sectional study was conducted using data on all individuals and all primary care providers in Sweden. Local markets were defined as: fixed radius (1 km and 3 km); variable radius; and variable shape-our new local market definition that allows markets to vary in both size and shape. Competition was measured using the Herfindahl-Hirschman index and a count of the number of competitors within the local market. Fixed radius markets fail to capture variation within and across geographical areas. The variable radius and variable shape markets are similar but do not always identify the same competitors or level of competition. Furthermore, competition levels vary significantly in Swedish primary care. Many providers operate in monopoly markets, whereas others face high competition. While the variable shape approach has the potential to better capture actual markets and more accurately identify competitors, further analyses are needed. Moreover, Swedish policymakers are advised to decide whether to still pursue competition and if so, take measures to improve local market conditions in monopolies.

The 2023 Merger Guidelines and Market Definition: Doubling Down or Folding?

The 2023 Merger Guidelines and Market Definition: Doubling Down or Folding?

FORMATION OF MARKETING STRATEGIC ANALYSIS IN THE FIELD OF TOURISM

This article is devoted to the important topic of marketing strategic analysis in the field of tourism. The authors examine methods and approaches that help tourism companies and organizations effectively develop their business in a competitive environment. The article considers such key aspects as the definition of marketing strategies, which describes the methods of defining marketing strategies that allow tourism enterprises to determine competitive positioning and target audience, emphasizes the importance of correct market segmentation and definition of the target audience for effective marketing. Formation of marketing strategic analysis in the field of tourism is a very urgent and important task. The tourism industry is becoming increasingly competitive, new players and tourist regions are emerging that offer similar services. Marketing strategic analysis allows you to identify both internal and external reserves of competitive potential. The theory and practice of evaluating the competitive potential of a tourist enterprise operates with a significant number of various methods, which differ in the complexity of use and feasibility of application depending on the scale of production and the specifics of the tourism company's field of activity. Such methods can be classified: according to the direction of information base formation (criteria and expert methods); according to the method of displaying the final results (graphical, mathematical and logical methods); by suitability for the development of management decisions (simultaneous and strategic assessment methods); by assessment method (indicative and matrix methods). Strategic analysis helps to develop unique offers for tourists and increase competitiveness. Today's tourists are increasingly emphasizing unique experiences, sustainable activities, and are increasingly demanding how their needs are met. Marketing analysis allows you to adapt offers to these changes. The Internet and digital technologies have transformed the way tourists search for, book and consume travel services. An effective digital strategy and analysis is required to ensure a presence in the online environment. Issues of sustainability and environmental responsibility are becoming increasingly important in the tourism industry. The analysis helps to develop strategies aimed at conserving natural resources and reducing the impact on the environment. Tourism is a global industry, and tourism businesses must consider the international context in their strategies and analyses. Therefore, the formation of marketing strategic analysis in tourism remains an urgent task for enterprises and organizations in this field. It helps to adapt to market changes, innovate and compete effectively, ensuring a quality experience for tourists and business sustainability. Keywords: strategy, strategic analysis, stages of strategic analysis, marketing strategies in tourism.

Market or Markets? Investigating Google Search’s Market Shares under Vertical Segmentation

Is Google Search a monopoly with gatekeeping power? Regulators from the US, UK, and Europe have argued that it is based on the assumption that Google Search dominates the market for horizontal (a.k.a. “general”) web search. Google disputes this, claiming that competition extends to all vertical (a.k.a. “specialized”) search engines, and that under this market definition it does not have monopoly power. In this study we present the first analysis of Google Search’s market share under vertical segmentation of online search. We leverage observational trace data collected from a panel of US residents that includes their web browsing history and copies of the Google Search Engine Result Pages they were shown.We observe that participants’ search sessions begin at Google greater than 50% of the time in 24 out of 30 vertical market segments (which comprise almost all of our participants’ searches). Our results inform the consequential and ongoing debates about the market power of Google Search and the conceptualization of online markets in general.

Regionalizing the supply chain in process life cycle inventory with multiregional input–output data: An implementation for ecoinvent with EXIOBASE

AbstractLife cycle inventory (LCI) databases, such as ecoinvent, are crucial for life cycle assessment (LCA), but lack country‐specific resolution in activity details and trade between regional activities in the supply chain. For example, ecoinvent only provides rest‐of‐world and European datasets for photovoltaic panel production, consuming the same global consumption mix of photovoltaic cells. Global or continental activities and trade limit the use of existing country activities, such as electricity production, and the accuracy and granularity of LCA results. We addressed this issue by disaggregating ecoinvent's global and continental unit processes to the country level and by regionalizing trade using country‐sector‐specific consumption mixes of product origins from the multiregional input–output table EXIOBASE. This produced a consistently regionalized ecoinvent at country level. Comparing the climate change impacts of 195,708 non‐market datasets in our regionalized ecoinvent with reference datasets in ecoinvent reveals manufacturing sectors as the most affected. The study of photovoltaic panel production shows that the differences in climate change impacts are mainly due to the different country‐specific suppliers of components and their electricity mixes, which are lost in the aggregated original data. The water consumption impacts of wheat production show the country differences only when regionalized CFs are applied, indicating that regionalized biosphere and technosphere flow amounts are needed for better results. The mapping quality between ecoinvent and EXIOBASE and inconsistent market definitions were discussed along with further limitations. Our study highlights the potential of incorporating better trade information and regional disaggregation in LCI databases to improve the LCA outcomes.

АНАЛИЗ УЧАСТИЯ РОССИЙСКОГО ОБОРОННО-ПРОМЫШЛЕННОГО КОМПЛЕКСА НА МИРОВОМ РЫНКЕ ВООРУ-ЖЕНИЯ И ВОЕННОЙ ТЕХНИКИ

The article explores and outlines the participation of the Russian military-industrial complex (DIC) in expanding the range of foreign trade activities and developing the economy of the Russian Federation by producing and releasing for these purposes various types of modern, in-demand and competitive military, civil and dual products on the world and domestic commodity markets. appointments. A definition of the global market for military products (MP) is given, its geography, characteristics, trends and operating features, the implementation of international legal regulation, the value of annual trade turnover, the presence of official and illegal schemes for the sale of weapons and military equipment, and the reasons for the emergence of the latter are revealed. The geography and indicators of the participation of the Russian Federation in this market for the period 2015–2022 are given, its rating among the states that are the main exporters of weapons and military equipment, as well as comparison with the USA and EU countries - the main exporters to the world market of weapons, military equipment and others types of military products, the ratio of their exports to military expenditures and to the gross domestic product. The authors present a correlation regression analysis of the main factors influencing Russia's posi-tion in the world market for weapons, military equipment and other types of military products, including an analysis of the Russian share in global arms exports, as well as an analysis of the share of arms and military equipment exports in Russia's total ex-ports. The conclusions summarize the results of the study, indicating the real, signifi-cant contribution of the Russian defense industry to the development of foreign trade activities and the country's economy in the context of sanctions restrictions and in-creasing global risks.

The 2023 Merger Guidelines: Law, Fact, and Method

The final version of the 2023 Merger Guidelines, which were issued in December 2023, is a vast improvement over an earlier draft—which indicates that the Agencies took the many comments that they received on a draft very seriously. These Guidelines break some new ground that older Guidelines did not address, and make many positive contributions, which this paper spells out. They are also excessively nostalgic for a past era, however, and this may explain their propen sity to treat empirical questions as issues of law: This is one way to insulate these Guidelines from further revision. The excessive reliance on one decision, Brown Shoe, is unfortunate—particularly since that decision has been so often repudiated, even by the Supreme Court itself. This paper pays particular attention to: the Guidelines’ treatment of structural triggers and direct measures of competitive effects; their aggressive position on potential competition mergers; their willingness to weigh a “trend” toward concentration as a factor; and their treatment of serial acquisitions. The Guidelines include a welcome new section on mergers involving multi-sided networks, although their view of networks is too one-sided; and the Guidelines also contain an expanded section on mergers with harmful effects on suppliers—including labor. The Guidelines’ treatment of market definition is likely to lead to underenforcement because they define markets too broadly. Finally, the Guidelines could have made better use of recent retrospective studies—many of which would have provided further support for the substantive positions that the Guidelines take.

THE URGENCY OF REGULATING THE MISUSE OF PERSONAL DATA POSSESSION BY E-COMMERCE FROM THE PERSPECTIVE OF COMPETITION LAW

The era of the digital economy has increased global trade transactions, giving rise to e-commerce companies that utilize the internet, websites, and applications to carry out trading activities in goods and services. This transformation has led to a change in viewing personal data as a commodity, so that e-commerce practices often take possession of personal data. Departing from this background, this study analyzes how the existing business competition law provisions anticipate the mastery of private data by e-commerce. This study uses a normative juridical method, with a legal-statutory approach and a conceptual approach. The results of the study show that mastery of personal data is indeed permitted in the Personal Data Protection Law, but it is necessary to pay attention to its impact on e-commerce business competition in Indonesia. The practice of controlling personal data has the potential to be misused and can result in monopolistic practices and/or unfair business competition. Current business competition legal instruments and the Business Competition Supervisory Commission (KPPU) are still limited in conducting investigations related to the practice of mastery of personal data by e-commerce which involves market advertising, definition of the e-commerce market, measuring market power, and reviewing mergers. It is necessary to formulate separate regulations regarding the prohibition of controlling personal data which can result in monopolistic practices and/or unfair business competition, both in the revision of the Business Competition Law and other related regulations.

Evolution of the Merger Guidelines: Is This Fox Too Clever by Half?

The 2023 Merger Guidelines make some notable improvements over the 2010 Horizontal Merger Guidelines. They give greater emphasis to the idea that predicting the competitive effects of a proposed merger is inherently difficult and that to block a merger the government need only show a risk that the merger may substantially lessen competition – not that it will do so. They also give greater emphasis to dynamic competition and innovation – especially with regard to acquisitions of potential entrants – and they add useful material on multi-sided platforms. However, the treatment of market definition in the 2023 Merger Guidelines may weaken horizontal merger enforcement by demoting the role of the “hypothetical monopolist test,” which is used to define markets for the purpose of measuring market shares, and by removing extensive material from prior guidelines that explained why market shares measured in narrower markets tend to be more informative than market shares measured in broader markets. The 2023 Merger Guidelines lower the market concentration thresholds that trigger a presumption by the antitrust enforcement agencies that a merger may substantially lessen competition, but the enforcement data suggest that change will have little effect in practice. The 2023 Merger Guidelines also may lead to less effective deterrence of harmful mergers because they are not well targeted at the mergers that are most likely to substantially lessen competition. One cannot prioritize everything.

The role of geographic market definition in analysis of grocery retailing

AbstractWe examine how estimates of household food demand elasticities and store profit margins vary with alternative geographic market extents using structural models of household store choice and retailer competition. Our consumer store choice model is novel, simultaneously accounting for the heterogeneity of store choice sets, households' travel distance to stores, and their store‐specific shopping basket prices. We estimate the models using a unique combination of datasets on grocery purchases. We find that the geographic market extent is positively associated with household demand elasticity and negatively associated with store profit margins. The maximum market extent at which changes in demand elasticities become statistically insignificant varies by retailers, ranging between 10 and 16 km. These findings are robust to alternative assumptions of store competition. Our results imply that overlooking the locality of retail competition can result in overestimating the magnitudes of household demand elasticities while underestimating store profit margins, characterizing a relatively more competitive market.

“The Case of Alibaba’s Skyrocketing Ticket.”--How to Define Relevant Market Identification in Internet Antitrust Law from a Comparative Law Perspective

This article would select the relevant market definition as a specific perspective as a research problem, and combined with the relevant provisions of the U.S. law. It takes the use of traditional comparative law in the concept of functionalism, in order to functional issues as a research method, to achieve a comparison between the two countries in the law under the provisions of the summary extracted from the different points. As a result, it could absorb and reference to the advantages of the laws of other countries in order to remedy for the filling of the shortcomings of China’s relevant legislation.

The hedonic price model for the wine market: A systematic and comparative review of the literature

AbstractThis paper carries out a thorough review of the literature on the estimation of hedonic price functions in the wine market, compiling and carefully documenting all research work on the subject. The review analyses the main methodological decisions taken by the different authors, as well as the typology of the available databases: identification of the relevant market, specification of the price function, sources and types of prices, econometric methodology, and type of publication. The variance decomposition analysis of the Adjusted‐R‐squared values from the estimated hedonic price functions suggests that attribute selection, the definition of the product market, the characteristics of information sources, and the implemented econometric procedures are the most relevant factors in explaining the models’ explanatory power.

Regulating Access to Big Data? – Between Ex-Ante and Ex-Post Economic Regulation

Big Data can be a monopolistic bottleneck that restricts access to downstream markets of companies that do not control the appropriate set of Big Data. This article examines both the drawbacks of competition law when applied to Big Data-driven markets as well as different possible forms of ex-ante economic regulation of access to Big Data, all with the aim of answering the research question: Is ex-post economic regulation alone insufficient to ensure access to competitively relevant Big Data, and if so, what type of ex-ante economic regulation would be most effective? In doing so it concludes that competition law is not a suitable primary tool for requesting access to Big Data for several reasons, in particular because competition law procedures are lengthy, market definition is difficult in the absence of a monetary price for the product, and markets driven by Big Data tend to be structurally inefficiently competitive. Asymmetrical ex-ante regulation is identified as the most appropriate form of regulating access to Big Data.

Competition effects of vertical integration in container ports: assessing the European Commission decisional practice

PurposeContainer liner shipping companies started expanding their business by investing in container port terminals in the late 1990s. This market entry results in an extensive presence of vertically integrated liners and terminals. This study aims to explore the competition effects of this vertical integration trend based on a regional (European) analysis. In particular, it extracts lessons from the European Commission (EC) cases on the competition effects of vertical integration. The critical analysis of the cases examined at the institutional level intends to reach conclusions on whether liner–terminal vertical integration harmed or advanced competition in the relevant markets and/or the extent that there is a need to revise the current policy practices.Design/methodology/approachThis study critically assesses the EC’s decisional practices in port container terminal vertical mergers in the last 25 years (1997–2021). Based on a literature review comparing maritime and competition economists' perspectives, it reviews the types of mergers examined, the methodology followed for relevant market definition and calculation of market shares and the estimated competition effects. The Hamburg–Le Havre area is the port range used as a case study for comparing the decisional practice with actual market developments. These container ports serve the greatest consuming market of final and intermediate goods in Europe and are gateways to Central and Eastern Europe.FindingsThe assessment identifies a need for expanding the investigation as a precondition for reaching conclusions on both the anti- and pro-competitive effects. First, only a limited number of transactions have been notified to the EC. Second, the empirical research identified a gap in this process, as there were no decisions (phase I) on vertical mergers between 2008 and 2016. Third, the exante assessment has not applied a phase II in-depth analysis to any case due to the absence of competition concerns. Finally, due to the absence of complaints, there is a lack of any ex post assessment of the effects of vertical integration.Research limitations/implicationsThis assessment is important for understanding the current and emerging features of intra-port and inter-port competition and the potential effects that the continuation and expansion of liner companies' vertical integration strategies will have along maritime supply chains. It also contributes to the broader discussion on liner companies' strategies, such as the research and policy-making efforts around the globe to understand the impact of both vertical and horizontal integration.Practical implicationsThese discussions are critical for a diversity of businesses that use liner shipping services or provide facilities and services to container shipping lines or ports. They are important for the interests of customers and consumers as they could inform any needed re-visiting of competition policy to protect from the dominance of any market developments that would lead to conditions limiting competition. Expanding analysis on the competition effects of non-notified mergers would help a better understanding of market changes.Social implicationsEnhancing competition and limiting monopolies is valuable from a consumer's perspective. This is more so in the case of maritime trade that serves the needs of societies. The study contributes by generating a better understanding of how decision-makers have worked towards that direction and what realignments are worthy.Originality/valueThere are no previous comprehensive reviews and analyses of the ways that policy-makers at the regional level have addressed the competition effects of vertical integration strategies of liner shipping companies when enhancing competition is valuable from a consumer perspective. Comparing maritime economists and competition, the study, via its literature review, also offers a comparison of maritime and competition perspectives on these competition effects, allowing positioning of how effective decisional-making practices have been.