Imperfect Competition Market Research Articles

Institutionalization and prudence attitude in an imperfect competitive market

Previous research has debated about whether institutionalization could improve market efficiency. We develop a theoretical model under anticipated utility combined with probability weighting to study the impacts of institutionalization on market participation and market efficiency. The prudence attitude towards probability uncertainty leads to limited participation by investors. We find that institutionalization influences the market in two different ways. An increase in the total sector size of institutional investors facilitates price discovery but discourages market participation from naïve investors due to information asymmetry. However, when the top institution has high market power, this large institution trades strategically to induce more participation by naïve traders for risk-sharing at the cost of lowering information efficiency.

A generation and transmission expansion planning model for the electricity market with decarbonization policies

Globally, the power sector must undergo a profound transition to achieve the decarbonization development targets. Various roadmaps are implemented, but only from a macro perspective, lacking the consideration of the electricity market rules. In this paper, we develop and present a market-driven generation and transmission expansion planning (MGTEP) model considering the effectiveness of the electricity market. Specifically, generation and transmission companies incorporate hourly market trading and annual capacity investment into strategic decisions to maximize their profits, with the supply function equilibrium model to analyze bidding behaviors. An equivalent quadratic programming formulation is deployed to solve the trilevel MGTEP model. Meanwhile, the MGTEP model is coupled with decarbonization policies to support the state and federal government in assessing energy transition strategies. We implement the MGTEP model with carbon emission allowance and carbon tax policies for the southern China electricity market to achieve carbon peaking by 2030. Carbon emission allowance adopts an intensity-based cap based on generation companies' historical output. The case study results show that 50 % carbon emission allowance or 400 CNY/t carbon tax is required but with several drawbacks, including unsatisfactory decarbonization effect, excessive economic sacrifice, etc. Finally, the case study is extended to dual-track policies with different combinations of policies. An optimal combination is 70 % carbon emission allowance and 160 CNY/t carbon tax. In this case, the power sector's carbon dioxide emissions and electricity prices in the southern China electricity market would increase to 554.6 Mt and 864.34 CNY/MWh in 2030, respectively, along with a carbon price of 850 CNY/t.

Supply chain channel structure with online platform and dual-purpose firms

This study examines the equilibrium channel structure strategy in a supply chain where a manufacturer can sell products to consumers via/on an online platform, and firms may focus on both profit and consumer surplus. We consider three supply chain channel structures: a reselling channel (mode R), wherein the platform acts as the reseller; an agency channel (mode A), wherein the platform acts as the marketplace; and a dual channel (mode D), wherein the platform acts as both the reseller and marketplace. This study explores the strategic effect of the dual-purpose concern on the co-opetition relationship of firms and derives ramifications for the optimal channel structure. First, the platform may abandon mode A when the manufacturer’s consumer surplus concern is high, even if the commission rate is high. This is because the manufacturer’s sales revenue may be harmed by the higher selling quantity and lower price resulting from the increased concern of consumer surplus in mode A. The manufacturer prefers mode D (mode R) only when the commission rate is low (high). However, the supply chain may prefer mode R (mode D) when the platform’s consumer surplus concern is high (low) irrespective of the commission rate. Second, with dual-purpose firms, both the platform and manufacturer may prefer mode R (mode D) when the commission rate is medium and the platform’s consumer surplus concern is high (low). Third, mode A is beneficial to consumer surplus and social welfare as long as agency selling is viable, which occurs when the consumer surplus concern and the commission rate are not too high; otherwise, mode D is the optimal choice, because it enables the supply chain to sell products to consumers in a more flexible way. Finally, the results are robust to a parsimonious dual-purpose platform, an imperfect competitive market, price competition with a dominant platform, multiple competing manufacturers, and a non-zero slotting fee.

ANALISIS STRUKTUR DAN KINERJA PEMASARAN JAMBU METE DI KECAMATAN TANJUNG BUNGA KABUPATEN FLORES TIMUR

This research has been carried out in the Tanjung Bunga District, Flores Timur Regency. The study was intended to analyze the structure and performance of the guava marketing. The study of guava farmers and the marketing agencies involved in guava marketing of farmers as island based producers and traders as consumers. The purpose of this study were (1) knowing the structure of the guava market as represented, and (2) knowing how guava market performance is portrayed in Distric Tanjung Bunga, Flores Timur Regency, the sampling technique used for the peasant responders used the simple random sampling technique while for the merchant responders used the snowball sampling. economic analysis that is the calculation of Farmers' Share, Margins, and profits of marketing costs. The results of this study indicate that the guava market structure is quantitatively that market structure in Tanjung Bunga District, Flores Timur Regency to the imperfect competitive market or the oligopsony, and market performance in Tanjung Bunga District, Flores Timur Regency forms a two channel marketing which is channel one Farmers→PPK (Collecting Collectors District) → PAP (Interisland Merchants), two channel Farmers → PAP (Interisland Merchants). The highest margin marketing on channel two, The Farmer Share is shared on channel one and two which is the same and the marketing has the most to gain in channel two.

Innovative Development Measures of the Chinese Medicine Industry in Industrial Big Data with the Aid of AI in the Context of an Imperfectly Competitive Market Economy

ABSTRACT The use of traditional Chinese medicine for healthcare has been on the rise in recent years, leading to the rapid development of the industry in China. However, the industry still faces several challenges, including the supply of raw materials, changing market demands, and competition from foreign competitors, especially during the current era of rampant epidemics. To address these challenges, advanced technologies such as artificial intelligence (AI) can play a significant role in enhancing the innovation and competitiveness of the Chinese medicine industry. One such technology is the Long Short-Term Memory (LSTM) algorithm, a recurrent neural network that has proven effective in processing and analyzing sequential data. By utilizing this algorithm, the Chinese medicine industry can harness the vast amounts of data generated during various stages of production, from raw material selection to clinical practice. This can optimize processes, improve product quality, and enhance treatment outcomes.

Technical efficiency analysis of oil companies in the Republic of Serbia

The subject of this paper is the assessment of the efficiency of oil companies operating in the Republic of Serbia. This paper presents the possibilities of applying non-parametric methods in researching the efficiency of oil companies in the Serbian market. In addition to the standard variables for measuring technical efficiency, the market share should be taken into account, because the oil market is an example of an imperfect competition market. By applying the quantitative-analytical method (Data Envelopment Analysis), obtained results show the development of the efficiency of oil companies in the relevant market, and indicate that the efficiency of oil companies improved during the analysed period. However, the results also indicate that there is still a problem of misallocation of resources. The reasons for this outcome are interesting and debatable for this industrial area.

Environmental Policy and Renewable Energy in an Imperfectly Competitive Market

Environmental Policy and Renewable Energy in an Imperfectly Competitive Market

Marketing Channel Analysis of Oil Palm Fresh Fruit Bunches in Lubuk Barumun District, Padang Lawas Regency

The purpose of the research is to find out marketing channel analysis of oil palm fresh fruit bunches in Lubuk Barumun District, Padang Lawas Regency. The research was conducted in Lubuk Barumun District in Padang Lawas Regency, North Sumatra Province with the consideration that Padang Lawas Regency has potential in developing oil palm plantation areas. The research was carried out from January to February 2021. The sample collection of producer farmers was carried out by purposive sampling with the sample criteria being independent oil palm farmers. From the population of oil palm farmers in Padang Lawas Regency as many as 297 people, a sample of 10 percent was taken, namely 30 farmer respondents. Quantitative analysis is used to determine the Hirschman Herfindahl index on market structure, market behavior based on the price relationship between two markets at the same level and the magnitude of market performance based on marketing margin analysis, profit margin ratio, farmer's share, cost share, and profit share. The results showed that, the number of oil palm farmers is large while the number of sellers or intermediaries is only a few so that the marketing system for fresh fruit bunches of oil palm tends to be imperfect competition because there are many sellers but few buyers (oligopsony). Analysis of the Hirschman Herfindahl index, it is known that the market structure of oil palm fresh fruit bunches in Lubuk Barumun District, Padang Lawas Regency tends to lead to an imperfect competition market (oligopsony) which causes the bargaining position of oil palm fresh fruit bunches farmers to be in poor condition weak, namely as a price taker. The efficiency of an already efficient marketing channel is the one that shows the smallest value of marketing efficiency, namely in channel III (Ep < 5% efficient). Marketing channels I and II have not been efficient (Ep > 5% inefficient). Keywords: Marketing Channel, Oil Palm, Fresh Fruit Bunches .

Dry Corn Corn Marketing System Moisture Content 14% in Rarampadende Village, Dolo Barat District, Sigi Regency

Sigi Regency's efforts in achieving the goals of improving welfare and increasing work competence of human resources, especially hybrid corn farmers in Rarampadende Village, Dolo Barat District, are through the application of the use of a moisture tester (Moisture Tester), which is a full-time activity for measuring corn moisture content. From the beginning, the average moisture content of 28-30% when harvested to 14% moisture content. How is the economic influence of farmers on the marketing of dry-shelled corn with a moisture content of 14% in Rarampadende Village, West Dolo District, Sigi Regency, and how is the economic influence in the use of the Moisture Tester on dry-shelled corn in Rarampadende Village, West Dolo District, Sigi Regency. Based on the description of the discussion above, it can be concluded that: The structure of the corn market that takes place in Central Sulawesi Province is not yet efficient, and the market structure that is formed leads to an imperfect competition market (oligopsony). And wholesalers as the dominant marketing agency in determining the price of corn. This is due to collaboration in price formation between brokers and wholesalers, one of the causes of price domination by wholesalers.

Impacts of sharing business on production, sales, and rental markets

The rapid growth of the sharing economy has received much attention by recent studies. Most of them focus on the impacts on the rental markets, and sharing is seen as a perfect substitute to rental. Since evidence shows that the sharing business has also greatly affected sales markets and manufacturers, this paper attempts to bridge the gap by examining the overall effects of sharing business on rentals, sales, production, and labor employment in a differentiated product model. Renting from firms and from private owners are different in the quality instability of sharing business. By assuming heterogeneous consumers with different risk attitudes, we characterize the equilibrium for this imperfect competition market. Our results show that sharing business not only decreases the rental prices, it also decreases the retail prices. The demand for new products will decrease, and the product supplying price, production and labor employment will also decrease. If the quality of sharing business is improved, the competition between rental and sharing products becomes more severe. Both selling and rental prices will decrease, but the price of sharing business will increase. Our model suggests that for existing rental firms, increasing product heterogeneity can reduce the impacts from sharing business. For the producers, our analysis suggests to increase the replacement rate through providing innovations, to provide portable “parts” to the used products, to provide post-sale services or sustainability production, and to participate in the sharing business.

Institutionalization and Prudence Attitude in an Imperfect Competitive Market

Institutionalization and Prudence Attitude in an Imperfect Competitive Market

Impact of Carbon Taxes on Strategic Investments in Imperfectly Competitive Electricity Markets

Impact of Carbon Taxes on Strategic Investments in Imperfectly Competitive Electricity Markets

A Review on the Complementarity Modelling in Competitive Electricity Markets

In recent years, the ever-increasing research interest in various aspects of the electricity pool-based markets has generated a plethora of complementarity-based approaches to determine participating agents’ optimal offering/bidding strategies and model players’ interactions. In particular, the integration of multiple and diversified market agents, such as conventional generation companies, renewable energy sources, electricity storage facilities and agents with a mixed generation portfolio has instigated significant competition, as each player attempts to establish their market dominance and realize substantial financial benefits. The employment of complementarity modelling approaches can also prove beneficial for the optimal coordination of the electricity and natural gas market coupling. Linear and nonlinear programming as well as complementarity modelling, mainly in the form of mathematical programs with equilibrium constraints (MPECs), equilibrium programs with equilibrium constraints (EPECs) and conjectural variations models (CV) have been widely employed to provide effective market clearing mechanisms, enhance agents’ decision-making process and allow them to exert market power, under perfect and imperfect competition and various market settlements. This work first introduces the theoretical concepts that regulate the majority of contemporary competitive electricity markets. It then presents a comprehensive review of recent advances related to complementarity-based modelling methodologies and their implementation in current competitive electricity pool-based markets applications.

STRATEGI PENGEMBANGAN KOPI ROBUSTA DI KABUPATEN MERANGIN

Sumatran Merangin Robusta Coffee has a plant area currently reaching 11,002 hectares. Coffee farming is one of the main livelihoods of the population in three districts, namely Jangkat, Sungai Tenang and Lembah Masurai sub-districts. The development of coffee commodities is very important in order to increase productivity and competitiveness. Regional government political support through various regulations aimed at creating various forms of convenience for agribusiness activities which are expected to boost commodity competitiveness. Therefore, it is necessary to formulate a policy strategy for the development of regional superior commodities, especially coffee, so that in the future the development of the coffee commodity can be more developed and product competitiveness is more competitive. This study aims, to describe the existing conditions of robusta coffee farming, and the strategy and design of the Robusta Coffee Farming Development program in Merangin Regency, the development of robusta coffee in Merangin Regency. The method used in this research is SWOT analysis and QSPM (Quantitative Strategic Planning Matrix). The results show that the majority of robusta coffee farmers in Merangin Regency are of productive age, most of whom have their own land with an area of ​​1 to 3 hectares. The market structure that is formed is an imperfect competitive market. Then the strategy for the development of robusta coffee farming in Merangin Regency is through the downstreaming of robusta coffee farming so that it can increase the added value of coffee-based products, improve farming technical skills to improve the quality of processed products based on robusta coffee and empower members and farmer groups. The priority of designing a robusta coffee development program in Merangin Regency is directed at increasing the capacity of robusta coffee farmers to be able to face competition, developing access to coffee marketing through product promotion, growing investor interest in and outside the region to develop downstream coffee-based products and building supporting infrastructure at centers. Robusta coffee production in Merangin Regency.

Differentiation and Risk Aversion in Imperfectly Competitive Labor Markets

This paper examines the effect of imperfect labor market competition on the efficiency of compensation schemes in a setting with moral hazard and risk-averse agents who have private information on their ability. Two heterogenous firms - characterized by vertical, respectively horizontal, differentiation - compete for agents by offering contracts with fixed and variable payments. The degree of competition then determines the structure of these contracts. Three regions can be distinguished: For low competition, low-ability agents are under-incentivized and exert too little effort. For high competition, high-ability agents are over-incentivized and bear too much risk. For a range of intermediate degrees of competition, however, agents' private information has no impact and contracts are second-best. An equilibrium where both firms are active exists only when the least-cost separating allocation (LCS) is interim efficient. If firms are only vertically differentiated, then the inferior firm is inactive in equilibrium, but its competitive threat still generates the three regions just described. Moreover, an equilibrium in which the inferior firm would not break even when attracting both agent types may exist even when the LCS is not interim efficient. We show that the degrees of vertical and horizontal differentiation have opposite impacts on the condition for interim efficiency of the LCS.

PASAR PERSAINGAN SEMPURNA DAN PASAR PERSAINGAN TIDAK SEMPURNA DALAM PERSPEKTIF ISLAM

Conceptually, this research describes the structure between the perfect competition market and the imperfect competition market which is also seen from an Islamic perspective, which of course also talks about the structure of the perfect competition market and imperfect competition market, as well as several things about this. Market, which incidentally is a meeting place for buyers and sellers to carry out buying and selling transactions of goods and services, as well as a place for the community to meet the needs and drivers of the community's economy. There are various kinds of markets, for a broad picture the market is divided into perfect competition markets, and imperfect competitive markets in which there are still divisions such as monopolistic, monopolistic, and oligopolistic markets. A perfectly competitive market in which there are many sellers and buyers of similar goods. Meanwhile, the imperfect competitive market contains only one seller or a few sellers. In this report, some information is generated regarding the two types of markets, such as the meaning, differences in the perfect competition market and imperfect competition market, the advantages and disadvantages of perfect and imperfect competition markets, market mechanisms, etc. The data collection method used in this study was to collect data from related web literature studies

Determinants of Price Rigidity and Flexibility: Some Survey Evidence for the Pakistan.

The objective of the study is to estimate the determinants of price stickiness or flexibility. Data is collected through structured questionnaire from 342 firms, which are selected through stratified random sampling technique from the Industrial Estate of Khyber Pakhtunkhwa. To estimate the determinants of price flexibility/rigidity, models are estimated through ordinary least squares technique and binary logistic technique. The most important factors for price stickiness are implicit/explicit price contracts and minimum price volatility. Imperfect competitive market structure, number of regular customers, backward-looking behavior, and credibility of central bank and size of the firm are important determinants of price rigidity. While economic literacy and information set regarding expected inflation make the prices flexible. Study recommend that monetary policy of Pakistan should use other transmission channels of money supply instead of traditional channel, because it is found that the degree of price rigidity is low in Pakistan. Keywords: Price Rigidity, Price Flexibility, Price Contract, Frequency of Price Change.

AN ANALYSIS OF MARKETING MARGIN AND ELASTICITY OF BELL PEPPER COMMODITY PRICE TRANSMISSION (A STUDY IN CANDIKUNING VILLAGE, BATURITI DISTRICT, TABANAN REGENCY)

The development of the agribusiness sector does not only focus on marketing but also on production. Tabanan is the leading producer of paprika in Bali. As a horticultural product, paprika has perishable nature, and its price is determined by the quality of the good. Besides, the marketing of horticultural commodities tends to involve many institutions which have an impact on prices in the market due to the distance between production sites and market locations. The purpose of this study were to analyze the marketing channels, market structure, and efficiency in marketing paprika in Candikuning, Baturiti, Tabanan Regency. The research method that been used was descriptive qualitative in marketing channels, price transmission elasticity, marketing margins, distribution of marketing margin, and farmer's share. The result showed that there are seven marketing channels in Candikuning. The market structure formed as imperfect competition market which is showed by the price transmission elasticity was 0.950 (Et <1). The marketing margin with the highest value was Rp 20,878.82/kg while the lowest was Rp 6,412.96/kg. The highest farmer share value was 87.76% while the lowest was 66.92%

Does market structure matter for Islamic rural banks' profitability?

This study investigates the impact of the market structure including bank-specific factor and macroeconomic conditions on profitability of Islamic rural banks in Yogyakarta and Central Java provinces. We employ the Structure Conduct Performance (SCP) and Relative Market Power (MRP) hypothesis using static and dynamic panel data regression over the periods 2013Q1- 2018Q4. Diagnostic tests obviously confirm that the dynamic panel regression is more appropriate in estimating profitability because of the dynamic behavior of profitability, instead of the static panel regression. Based on the Concentration Ratio (CR) and the Herfindahl-Hirschman Index (HHI), both provinces face imperfect competition market. Market share positively affect profitability but market concentration has no impact on profitability. The results clearly show that our study supports the RMP hypothesis but fail to confirm the SCP hypothesis. Some control variables such as the level of efficiency and financing rate also affect profitability. A high level of operating efficiency increases more profits and low non-performing financing produce more profits. Our findings suggest that improving operating cost eventually is the key in capitalizing the power of market share. JEL Classification : G21, G24 DOI: https://doi.org/10.26905/jkdp.v24i4.4810

Marketization Level, Fiscal Input, and Rural Commercial Bank Performance

ABSTRACT Based on the financial deepening theory and the imperfect competition market theory, this article analyzes the influence of marketization level on rural commercial bank’s financial performance as well as social performance by adopting the data of 36 rural commercial banks in China during the period 2012–2016 and further discusses the role of fiscal input in this relationship. We utilize a panel threshold model to examine the nonlinear influence. The empirical results show that the impact of marketization level on financial performance of rural commercial banks is nonlinear. Marketization exerts a greater positive impact on financial performance of rural commercial banks when marketization is low. In addition, marketization exerts an underlying effect on rural commercial bank’s social performance when the threshold of marketization is exceeded. Finally, fiscal input of the government plays an inhibitory role in this promotion relationship. Overall, we confirm that marketization plays a crucial role in rural commercial bank’s performance.