Formation Of Monopolies Research Articles

The concept of economic concentration in theory

The article considers in chronological order the scientific views of scientists of both modern and past centuries on defining the essence of economic concentration. The article analyses and compares them, and as a result reveals the main criteria of the concept of economic concentration, identifies its components and mechanisms as a theoretical value.
 The article highlights the historical aspect of the origin and development of scientific thought on the essence of economic concentration and the impact on it of events that took place in society in a particular period of time, such as the industrial revolution of the XVIII century, which became the driving force for intensifying scientific research in the field of economic mergers.
 The main aspects of concentration processes and their impact on the economic situation both within a particular state and abroad are clarified. The author outlines the range of possible consequences of economic concentration and gives an assessment of them, according to which the impact of concentration on the economy and society is both positive, leading to the flourishing of competition as a driving force of economic and social progress, and negative, leading to the formation of monopolies, oligopolies and imperfect competition, rising unemployment, production restrictions, rising prices, and slowing down scientific and technological progress.
 The importance of theoretical consolidation of the concept of economic concentration as a way to avoid negative consequences of concentration processes is revealed.
 It is established that due to the diversity of criteria for economic concentration, it is theoretically quite difficult to capture its essence in one concept, since it is necessary to separate its types, levels, volumes and other criteria. In a generalised form, economic concentration is a complex economic process that consists in the controlled combination of production, technology, economic relations, labour, labour, capital, resulting in an increase in the size of production, labour resources, capital, production technologies, which in turn may lead to the formation of monopolies and restriction of competition.

Spillover Effect Caused by the MNEs on the Host States

Being a prominent promoter in the process of economic globalization, the MNEs help promote the development of the economy both in the parent country and the host states by acting as an indispensable market subject. The MNEs root the host states' or even the global market, relying on the advanced technology of the parent country-usually developed country. During the process, the companies focus on training not only relevant but also extraordinary employees and promote the proportion of exporting and renewing the structure of manufacturing, establishing maker factories directly in the host states, thus accelerating the process of the spillover effect invisibly. From this perspective, the technology spillover effect seems to bring a win-win result. But it is worth noticing that the technology which can be transferred to the host states or provided by the MNEs is limited both in quality and quantity. Furthermore, the economic spillover effect may also cause the capital crowding out from the host states' market, the suppression of the national enterprises, and the formation of monopolies are also worth studying. However, the current researches on the spillover effect mainly are about solving the practical problems, and the general plus comprehensive study is in deficiency. Therefore, this study focuses on the different aspects that the spillover effect can impose on the host states. Finally, it finds out that the spillover effect can operate in both negative and positive manners, which provides a groundbreaking perspective to deeply discover the MNEs and the spillover effect.

ГОСУДАРСТВЕННОЕ РЕГУЛИРОВАНИЕ ЗАЩИТЫ КОНКУРЕНЦИИ В РОССИИ

In a market economy, the state needs to regulate the state of the competitive environment, since exclusively market mechanisms most often lead to the formation of monopolies and subsequently the abuse of a dominant position in the market, as well as other negative phenomena. The article examines the legal framework for state regulation of competition protection, analyzes the activities of the Federal Antimonopoly Service of the Russian Federation for the period from 2018 to 2020, and assesses the implementation of the National Plan for the Development of Competition.

Salary Cap, Organizational Gap, and Catch-up in the Performance of NBA Teams: A Two-Stage DEA Model Under Heterogeneity

This paper evaluates National Basketball Association teams performance using a two-stage approach under a metafrontier framework. Our approach decomposes overall efficiency into salary-cap and on-court efficiency. Organizational gaps between different organizational structures are calculated as well. The introduction of the salary cap as an important element for a competitive market preventing monopoly formation allows the examination of the effects on different types of performance. Findings reveal that teams experience increased performance while organizational gaps decline. Moreover, a [Formula: see text] and [Formula: see text] convergence analysis reveals convergence patterns. Finally, the catch-up index denotes that the speed of convergence increases, especially after the salary cap policy implementation.

Centers for Disease Control and Prevention as a Strategic Agent in the Pediatric Vaccine Market: An Analytical Approach

Problem definition: Pediatric vaccine markets in the United States are vulnerable to the development of monopolies due to few manufacturers and high research and development costs. This work addresses how the government can ensure the cost-effective procurement of pediatric vaccines by all U.S. children from private manufacturers. The Centers for Disease Control and Prevention’s (CDC) significant patronage of pediatric vaccines affords them leverage in negotiating public-sector prices that prevent the formation of monopolies, but existing vaccine pricing literature excludes the CDC as a rational player. Academic/practical relevance: We combine optimization and game theoretic techniques to address cost-effective immunization of all U.S. children. Methodology: Our optimization model from the CDC’s perspective minimizes negotiated government costs while ensuring adequate national vaccination levels, linking dynamics in public and private sectors, and incorporating competitive manufacturer behavior. The optimization model embeds an extant game theoretic price model to capture competitive interactions among manufacturers in the private sector, where they compete independently of the CDC. The model is validated in an extended case study of the Infanrix–Daptacel vaccine duopoly. Results: The study indicates that dissimilar products advantageously segment markets with asymmetric manufacturers. Furthermore, markets are at lower risk when high-capacity manufacturers have moderate target profits, especially in cases of high demand and asymmetry. We demonstrate that our model can help restabilize a market that experiences a vaccine shortage and that the CDC might mitigate the same shortage using strategies that depend on which manufacturer is limited. We also underline scenarios in which the CDC may be able to prevent monopolies through financial incentives to manufacturers. The results support a paradigm shift from annual contracts to ongoing negotiations, which would enable the CDC to exercise control over high-risk markets. Managerial implications: Our study demonstrates an analytical approach for managerial government officials to influence pediatric vaccine prices via the procurement of public-sector goods.

On the Competitive Mechanism Concerning the Third-Party Transaction in Chinese Market

AbstractThis paper seeks to position the third-party transaction (TPT) in the macrostructure of Chinese market in terms of Concentration Ratio and Herfindahl-Hirschman Index. By extending both Cournot oligopolistic and Stackelberg oligopolistic competition models, a new oligopolistic competition model is established for China’s TPT market. Based on multidimensional game, a pricing game model is theorized accordingly to elucidate the TPT platform. The influence of various factors on the price of the TPT platform is verified with numerical simulation. The formation of monopoly is an inevitable consequence of the “one superpower and multi powers” market structure given the unregulated development of TPT enterprises as the prerequisite. In addition, through the studies on telecom payment market, such unregulated development can also cause the “big-three” domination for the TPT enterprises in the “multi powers” market structure. Based on our modelizations, this paper serves to provide prospect recommendations for policy-making of state supervision authorities.

ВПЛИВ ЕВОЛЮЦІЙНИХ ПРОЦЕСІВ НА РОЗВИТОК ІНФРАСТРУКТУРИ ЗАЛІЗНИЧНОГО ТРАНСПОРТУ

The article deals with the stages of railway transport infrastructure component evolutionary development. It is noted that with the loss by the railway industry of its naturalness, as it is a natural monopoly, the status of the infrastructure in it changes. Herewith, as a rule, a new model for managing railway transport is formed. The next stage in the development of infrastructure begins. The author outlines the reasons for the transition from one stage in the evolution of infrastructure to the next.In the process of research, three stages of the evolutionary development of railway transport infrastructure are identified. The first one is when infrastructure acts as a component of monopoly formation. The second one is when an infrastructure company becomes a vertically separated independent entity. The third one is when an infrastructure company becomes a member of a vertically integrated association created through strategic partnerships with carrier operators and the state. It is proved that changing the place of the infrastructural component determines the features of its functioning and the degree of risk. The characteristic features of the infrastructure company at each stage of development are highlighted. The emphasis is placed on the practicability of allowing Ukrainian railway companies to pass the second stage in infrastructure development.It is noted that the functioning of the infrastructure company as a part of a vertically integrated association through the development of strategic partnerships with carrier operators is more acceptable and appropriate. The world experience shows that for railway networks with a high traffic density and a large share of freight trains, the advantage is not the vertical separation and attempts to introduce competition, but the improvement of the state policy in the field of railway transport, motivation and management systems in the industry.

Financial Machine Learning Regulation

A look at regulatory challenges and recommendation in the age of AI. Investigating topics like monopoly formation, machine learning auditability, bias mitigation strategies and automated regulatory monitoring.

Digitisation, Monopoly Formation and Economic Inequality

Die voranschreitende Digitalisierung bringt zahlreiche neue Chancen mit sich. Gleichzeitig ergeben sich auch neue Herausforderungen für Wirtschaft und Gesellschaft. Dieser Beitrag beschäftigt sich mit zwei zentralen Problemen, die in letzter Zeit intensiv diskutiert werden. Zum einen geht es um die Tendenzen zur Monopolbildung, die sich auf Märkten für digitale Güter beobachten lassen. Zum anderen um die Auswirkungen auf den Arbeitsmarkt durch Roboterisierung und künstliche Intelligenz. Hier stehen die Sorge vor Arbeitsplatzverlusten und einer weiter zunehmenden Einkommens- und Vermögensungleichheit an erster Stelle.

War Communism Dawn of the NEP: the Fishing Industry Management of the Northern Ob-Irtysh Region (1920-1921)

The author analyzes historiography of soviet fishing industry establishment at the Northern Ob-Irtysh region and examines sources from the funds of Sibrevcom authorities and all-Siberian co-operative organizations that have not been earlier introduced into scientific research of the problem of establishment of the NEP policy in the provinces. This allowed validating a conclusion about complex interaction between cooperative organizations and food activities, and about contradictions between all-Siberian and Tyumen organizations. In 1920, cooperation actively used individual suppliers, individual agents, traders, salespeople and manufacturers to fulfill state procuring tasks. Cooperative organizations were interested to establish equivalent barter in the Northern part of Tyumen province. Creation of state trust Oblastryba aimed to exclude co-operation from organization of fishery. The task was solved by concentration of all resources in the possession of food establishments and neglection of taken liabilities. Thus, beginning of NEP in the Northern region coincided with tightening of administrative pressure on cooperative unions, depriving them of the opportunity to buy fish. These led to formation of monopoly in fishing industry in the Northern Ob-Irtysh region with the help of administrative pressure of Oblastryba that could procure by interaction with different economic sectors. Thus, establishment of NEP in the North of West Siberia coincided with weakening of competition and straightening of centralization in fisheries sector.

Formation of monopolies in a bipartite market

We study the formation of monopolies in a simplified economic model where two brands compete in the market, using an agent based model. Each agent represents a company that uses one of the two available brands and interacts with other companies. The brands continually improve their product in order to compete for market share. In the innovation process companies can decide to change to the other brand if the move is beneficial. There is a cost for the company if it decides to switch to the other brand, and another cost if it stays with its current brand but only upgrades to a new enhanced version of the product. Our simulations show that the system always reaches a state when all companies end using a single brand, which is equivalent to a monopoly. We study the time span needed to reach the single brand final state for different parameters of the model.

Monopsony vs. Monopoly: The Analytical Distinctions between Predatory Bidding and Predatory Pricing

The current state of antitrust law erroneously applies the same test to predatory pricing and predatory bidding schemes that allegedly violate Section 2 of the Sherman Antitrust Act. Treating predatory bidding like predatory pricing is both over- and under-inclusive at the same time. It is over-inclusive because a firm engaging in predatory bidding is much less likely than one engaging in predatory pricing to ever recoup their losses due to the fundamental differences between the formation of monopolies and monopsonies in modern markets. It is under-inclusive because while a failed attempt at developing a monopoly through predatory pricing is likely to benefit consumers, it is possible that a failed attempt at predatory bidding will in fact harm consumers; an outcome in direct conflict with the stated goals of antitrust law. These foundational distinctions between predatory bidding and predatory pricing lead to the conclusion that these two antitrust violations are not just different in degree, they are different in kind. As such, a different test must be used to gauge whether or not an antitrust violation has occurred in the predatory bidding context than in the predatory pricing context. Given the specific nature of the concerns of applying predatory pricing rationale to predatory bidding, a strict consumer welfare test firmly rooted in the rule of reason tradition is the best alternative.

Trabalho e formação profissional do atendente de consultório dentário e do técnico em higiene dental

Este artigo analisa a formação de egressos dos cursos de atendente de consultório dentário (ACD) e de técnico em higiene dental (THD), procurando compreender a importância dos cursos técnicos na melhoria do desempenho profissional, da renda individual e familiar, assim como a sua importância para uma melhor inserção no mercado de trabalho. Mostra que, apesar das deficiências assinaladas pelos egressos, a escola os qualificou adequadamente para o desempenho de suas funções. No entanto, as dificuldades por eles encontradas em termos de representação coletiva, a falta de prestígio social e a baixa credibilidade e respeito profissional que lhes consagram os cirurgiões-dentistas permanecem como problemas a serem enfrentados. A falta de legitimidade profissional que ainda os caracteriza faz com que os auxiliares da odontologia fiquem à mercê das oscilações do mercado de trabalho e das políticas de saúde. O artigo sustenta que a regulamentação dessas categorias de trabalhadores pode significar proteção técnica e ética, evitando a formação de monopólios profissionais e assegurando normas de eqüidade e justiça sociais para os profissionais da saúde bucal.

Exploring the Economic Rationale for Protecting Geographical Indicators in Agriculture

“The enduring competitive advantages in a global economy lie increasingly in local things—knowledge, relationships, motivation—that distant rivals cannot match” (Porter, 1998) The misappropriation of the names of geographical regions such as Parma, Roquefort and Champagne is protected in the European Union by a system of Geographical Indications, and is acknowledged by the World Trade Organization as an important intellectual property right. This article addresses whether there is a case for similar protection in South Africa. The article explores the economic rationale for implementing a system of Geographical Indications by addressing issues such as information asymmetry and the role of reputation; formation of niche markets; monopoly formation, value added and rural development. The economic rationale for protecting Geographical Indications derives mainly from the fact that place of origin may be used as a quality signal, or alternatively, that the resources of the region may be captured as quality attributes. In the first instance the meaning of the geographical name is emphasized in order to reduce information asymmetries. Where place of origin is used as an attribute, resources of the region are used to increase the value of the product. This includes specific resources such as production techniques, varieties and species, but also resources that are general to the region such as landscape, environment and culture. Economic arguments present a strong justification for the introduction of geographical indications in South Africa. At the same time it will afford greater protection to indigenous resources and geographical names which could, through the collective and inclusive nature of the system, directly contribute to rural development.

The impact of reputation on supply chains. An analysis of permanent and discounted reputation

In long-term recurring contractual relationships, which are common in the B2B-arena, reputation and trust play a crucial role. This analysis investigates the joint impact of reputation and price-based ranking of suppliers on the material flow in the supply chain. Positive reputation proves to be a key factor in reaching dominating market positions, which illustrates the importance of building brand awareness in all stages of a supply chain. Through our simulation, it will be observed that the ranking of suppliers by reputation-based choice has a stabilizing effect on the material flow in the supply chain. A strong reputation component in the individual choice stimulates the formation of monopolies, while the discount of reputation imposes a countertendency on this effect. The Bullwhip Effect, another phenomenon that carries a countertendency to the reputation-based monopoly effect, is observed to be even stronger for members of tiers with a high fluctuation of order rates.

VIEWPOINT AND OPINION: SCOPE FOR AND LIMITATIONS TO DEREGULATION AND PRIVATISATION OF SOUTH AFRICAN AGRICULTURAL SERVICES / Geleenthede vir en perke aan deregulering en privatisering van Suid-Afrikaanse landboodienste

Abstract The half century following 1930 witnessed world-wide increases in state involvement and interference in economic life. Public regulation and public enterprise brought in their wake gross inefficiency and inequity. Public enterprise could not maintain production efficiency. This, together with increasing regulation, created an ever-increasing burden of social services, monopolies, increased taxation, deficit budgeting and inflation. Governments and the public became increasingly unable to carry these burdens, This led to policies of deregulation and privatisation with improved effectiveness, efficiency and public finance as motives. Competition is vital to efficiency. Privatisation takes on different forms, depending on what is privatised and to what extent: provision or production. Persistence or formation of monopolies, changed objectives, staff and management problems and accountability present distinct pitfalls with deregulation and privatisation. These pitfalls must be overcome and avoided. D...

Topic‐specific market concentration in the information services industry: Evidence from the DIALOG group of data bases

Abstract Recent interest has been expressed in the potential of information technology to create new kinds of monopolies. This paper looks at production and marketing factors in the information services industry which may increase concentration in the hands of fewer producers, potentially leading to monopoly formation. The research develops an economic model of topic‐specific market concentration and delineates the factors which might cause monopolies to occur in the markets of information data base production firms. The model shows that market concentration rises with inelastic demand, reduced marginal costs and efficient technology, and increased data acquisition costs exacerbated by low rates of data obsolescence. These effects are empirically investigated in the DIALOG group of data bases. The results of the research have implications for corporate information systems and information systems in the public sector.

Le Moyen Age pour quoi faire? by Régine Pernoud, et al

TECHNOLOGY AND CULTURE Book Reviews 667 Le Moyen Age pour quoi faire? By Régine Pernoud, Raymond Delatouche , and Jean Gimpel. Paris: Editions Stock, 1986. Pp. 315; il­ lustrations, notes. F 89.00 (paper). Since the 19th century, the rehabilitation ofthe long-scorned Middle Ages has been proceeding vigorously, not only in political, economic, and intellectual history but in that of science and technology as well. Thanks to the work of a series of great scholars, from Lefebvre des Noëttes to Lynn White, jr., the medieval material civilization created in north temperate Europe has come to be appreciated for the great achievement that it really was, complementing the equally impressive economic takeoff that economic historians have long noted and that the late Robert Lopez called “the birth of Europe.” Now three French medievalists propose to put the European medi­ eval technological experience at the service of the Third World. Ré­ gine Pernoud provides the historical setting—the story of how, between the social and military turbulence of the early Middle Ages and the epidemic and military turbulence at the end of the period, four pros­ perous and peaceful centuries (the 10th through the 13th) produced the solid agrarian and urban base that later disasters could not destroy. Raymond Delatouche then examines the conditions of this remarkable development: the exploitation of natural resources, an original form of property holding and management that assured full employment and freedom of economic enterprise, and a liberal economic system that prevented the formation of monopolies and allowed for immense creative variation. Jean Gimpel, whose work is known in English as very competent history of technology, then takes the lesson to the authors’ logical conclusion. He recounts how, under the sponsorship of the United Nations, he has traveled in Africa and Asia with his medieval materials and information, camshafts, pulley and block and tackle devices, floating mills, and hydraulic power saws, which, in his view, will help developing nations in the Third World far more than the tractors and factories that routinely break down or stand empty after optimistic beginnings. As early as the 16th and 17th centuries, Europeans learned the error of using the remote European past as a model for interpreting the cultures of non-European peoples, but the model of agricultural technology is not as misleading as those of legal and political forms and specific revealed religion. Many other economists and develop­ ment experts have pointed out the extent to which crises in the Third World possess a major agricultural component that is not overcome by the importation of attractive, but inappropriate, high technology. Pernoud, Delatouche, and Gimpel are indeed medievalists, but they are also 20th-century citizens with 20th-century perceptions and sym­ pathies, and their book is a lively, readable, and provocative contri­ bution toward solving a problem that will probably (nuclear war aside) be the world’s greatest problem over the next half-century. The book 668 Book Reviews TECHNOLOGY AND CULTURE has many useful and clear line drawings and ample statistical infor­ mation to prove that their program certainly worked once, and, given the chance, might very well work again in the hands of peasants who must still extract food and some wealth from a reluctant earth. Edward Peters Dr. Peters teaches medieval history at the University of Pennsylvania. Islamic Technology: An Illustrated History. By Ahmad Y. al-Hassan and Donald R. Hill. New York: Cambridge University Press, 1986. Pp. xiv + 304; illustrations, bibliography, index. $39.50. Ahmad al-Hassan and Donald R. Hill present a survey of mechan­ ical and civil engineering, military technology, navigation, chemical technology, textiles, agriculture, mining and metallurgy, and the role of engineers in Islamic society, with an introduction on Islamic science and an epilogue on “critical issues.” Islamic Technology is intended as a popular book, and, for this reason, footnotes are omitted. This is frustrating, especially when new material is presented and the source is not readily accessible; it also leads to the inclusion of a number of passages in quotation marks to which—inexcusably—no author is ascribed. The volume covers mainly the Middle Ages and, although no ter­ minal date is indicated, extends the study of some techniques into early...

The Formation of Monopoly by the Japan Spinning Industry before the First World War : The Cartelization of the JCSA and China

The Formation of Monopoly by the Japan Spinning Industry before the First World War : The Cartelization of the JCSA and China

"The Concentration of Production" and "the Formation of Monopoly" in the Process of Business Cycles in the British Bessemer Steel Industry before the First World War : A Study in the History of Formation, Dissolution and Reconstruction of the International Steel Syndicate

"The Concentration of Production" and "the Formation of Monopoly" in the Process of Business Cycles in the British Bessemer Steel Industry before the First World War : A Study in the History of Formation, Dissolution and Reconstruction of the International Steel Syndicate