Monopolistic Competition Market Research Articles

Internationalization of Brand Biography: Firm Characteristics as Moderators

Purpose – Underdog positioning is often used to evoke a positive attitude when interacting with consumers. However, little research has been conducted on the market competition structure and innovation contexts in which underdog positioning produces the most impact. This research aims to investigate unexplored boundary conditions of underdog positioning and addresses two issues: market structures (oligopoly vs monopolistic competition) and perceived firm innovativeness (PFI). Design/methodology – Two one-way ANOVA designs (market structures: monopolistic competitions vs. oligopoly; perceived frim innovativeness: strong vs. weak) were randomly assigned to 297 graduate and undergraduate students (52 % female) majoring in business. Study 1 examined the effect of underdog positioning on consumer attitudes in the different market structures. Study 2 investigated the relationship between underdog effect and consumer attitudes through viewing conditions that varied in PFI. Findings – Drawing on the results of the study, the authors conclude that underdog positioning is effective to generate more positive consumer attitudes when employed in the market structure of monopolistic competition rather than oligopoly. Moreover, both underdog and top dog positioning are likely to generate more positive consumer attitudes when accompanied with strong PFI than weak PFI. Originality/value –This is the first study to distinguish between monopolistic competition and oligopoly market structures with underdog positioning as well as to demonstrate a positive effect of PFI, regardless of the type of brand narratives.

Determining the structure of pharmaceutical industry in Iran

PurposeAs the pharmaceutical industry is one of the key sectors of the health-care system, the identification of its structure is of particular importance. This paper aims to determine the structure of the pharmaceutical industry in Iran to provide appropriate solutions for pricing and regulation by policymakers. Iran is a growing pharmaceutical market with over $4bn in sales, so the supply side needs to be examined to meet the domestic consumption.Design/methodology/approachThis research is a descriptive and retrospective analytical study which examines the Iranian pharmaceutical industry through library studies and using pharmaceutical data of the country’s Food and Drug Administration during 1992-2016. Due to data availability in firm level, the concentration ratio of N leading firms and the Herfindahl–Hirschman index are used to measure the concentration of the pharmaceutical market in 2014 and 2016.FindingsThe results show that pharmaceutical manufacturing, importing companies and distributing companies play roles in monopolistic competition market, loose oligopoly market and oligopoly market, respectively. For all companies, the magnitudes of Herfindahl–Hirschman indices indicate non-competitive settings. As a result, these companies set their own prices, and market demand affects their sales. In addition, demand for medicines is shaped in the form of supply-induced demand.Research limitations/implicationsThis research was accomplished with no computational limitation. However, it was confined to only one country, one industry and the mentioned period of study.Practical implicationsThe pharmaceutical manufacturers have no influence on medicine prices, and government pricing regulations lessen the market power of such market agents. However, the easy entry to and exit from market stimulate producers to participate in manufacturing activities. The pharmaceutical importers may expand their imports in response to entry new actors; however, the new entrants weaken the coordination on pricing decisions.Social implicationsAs pharmaceutical distributers act in an oligopoly market, they can collude, reduce competition and lower the welfare of pharmaceutical consumers. In such conditions, high investment requirements and economies of scale may discourage the entry of new firms.Originality/valueAlthough there are various studies on market structure in non-pharmaceutical industries, this study is a new effort to measure concentration in the Iranian pharmaceutical market and to determine its structure.

MENELISIK INDUSTRI DAN STRUKTUR PASAR MEDIA MASSA DI INDONESIA

Competition in the business and mass media industry globally began to be felt in Indonesia. This is evident in the structure of the mass media market in Indonesia, where media conglomeration has become commonplace. The industry and structure of the mass media in Indonesia has developed with many variants of mass media that can be consumed by audiences, whether they are conventional media types (old media) or internet based digital media (new media). The purpose of the research in this article is to find out the reality of industry and the structure of the mass media market in Indonesia. The research in this article uses qualitative research methods, precisely the descriptive-qualitative method, by focusing data from the literature review. The results of the research show that industrial conditions and the structure of the mass media market in Indonesia can be viewed from several perspectives, i.e. the number of media buyers and sellers, product differentiation, and barriers to competition. Meanwhile, to explore the structure of the mass media market in Indonesia, we can use The Theory of The Firm, which consists of four types of markets. The four types of markets are monopoly market, oligopoly market, monopolistic competition market, and perfect competition market. Media management from an art perspective can be used as a basis for the media industry; and globally, industry and the structure of the mass media market in Indonesia are not much different from other countries that adhere to the ideology of democracy in the world.

Assessing the degree of financial integration in ASEAN—A perspective of banking competitiveness

This paper assesses the degree of financial integration of the ASEAN economies by investigating the evolution and convergence properties of banking market competitiveness over the period 1994–2016. Banking market competitiveness is modelled by the Panzar-Rosse (PR) reduced-form revenue model, and the estimated measures of competitiveness (H-statistics) are then used to test for β- and σ-convergence. Greater financial integration is not necessarily competition enhancing, however we find evidence of convergence toward a monopolistic competitive market structure across countries. We find that competitiveness weakened and the speed of convergence slowed following the Asian Financial Crisis and the Global Financial Crisis, but in general the policy of financial integration has been moderately successful.

Market Structure and Competition of Islamic Banking in Indonesia

The aim of this study is to investigate the market structure and competition of Islamic Banking with H-statistics (Panzar and Roose) model using panel data over a period of July 2010 to September 2014. The result of H-statistics test for long-run equilibrium showed disequilibrium condition. It means that Islamic banking in developing stage. While the market structure and competition test confirmed that the value of the degree of H-statistics generally in monopolistic competition market with score 0.53 to 1.06.

Sustainable Governance for the Opened Electric Vehicle Charging and Upgraded Facilities Market

Since the China State Grid opened the market for infrastructure construction of electric charging stations and allowed Tesla, Potevio, BAIC BJEV and other enterprises to provide their own charging stations and other infrastructure construction, the development of electric vehicles has been greatly affected. How to maintain a sustainable governance in the opened electric vehicle charging and upgraded facilities market is an important policy issues. This paper presents a monopolistic competition model for the differentiated products market and addresses several issues related to Cournot equilibrium to illustrate why the expected free market actually operates in a monopolistic competition market structure. The analytic solution of the model shows that whether the extent of firm entry is insufficient, excessive or optimum is determined by consumers’ time preference, level of production differentiation and features of cost structure, including fixed cost and marginal cost. The sensitivity analysis has been performed among the above factors and tracked some other factors which would determine the effect of the new policy issues. The main policy suggestion is that the government should optimize entry regulations and lay down the criterion of charging interface standards for charging stations to avoid the electric vehicle charging and upgraded facilities marketization process of a one-size-fits-all solution and form a monopolistic competition market.

Competitive Condition of Sub-Saharan Africa Commercial Banks

AbstractThis study assesses the competitive environment and the determinants of the Sub-Saharan Africa commercial banking sectors. We used the Lerner index that is generally acknowledged as the best at estimating the bank level competition and the Generalised Method of Moments (GMM) to study 440 commercial banks for the period 2006 to 2015. We found a monopolistic competitive banking market. We also observed that competition is driven by the level of bank capital including some bank specific variables. Hence, we concluded that the banking market of the SSA region is contestable and competitive. As such, we recommend, among other things, that policy makers should device measures to ensure an ongoing competitive banking environment while stimulating other economic variables to complement this feat.

Market structure and effects of the banking sector

In this study, the market structure of the Turkish banking sector was investigated between 2004-2014. Herfindahl- Hirschman Index This result is important in the banking sector in terms of the efficient use of resources and the demonstration of the efficiency of savings into investments: This result supports the findings of Claessens and Laeven (2004), Abbasoglu et al. (2007), Ozcan (2012), Uzgoren and Tarhan (2012), in the literature. CR4 and Herfindahl-Hirschman the calculation of the Index study the Turkish banking sector have reached the conclusion a monopolistic competitive market structure.

Computable urban economic model incorporated with economies of scale for urban agglomeration simulation

Urban agglomeration has attracted attentions of urban planners, economists, and policymakers. For the sake of urban agglomeration simulation, this paper attempts to develop a computable urban economic (CUE) model incorporated with economies of scale, through the approach of new economic geography. It is assumed that each firm produces a product variant in a monopolistic competition market, and the number of firms is explicit and determined endogenously. The Dixit–Stiglitz type utility function with product variety is adopted into the households’ behavior to reflect consumers’ preference for variety. On the other hand, internal increasing returns to scale and fixed cost are introduced in firms’ behavior to extend the model with economies of scale. The model’s parameter estimations and calibration are conducted on the basis of empirical data from several approved sources for Changzhou in 2008. Numerical computations are implemented by employing the extended CUE model incorporated with economies of scale to explain and examine how the urban agglomeration comes into being. Simulation results show that the extended model incorporated with economies of scale is able to commendably represent the urban agglomeration mechanism, providing a promising simulation tool for urban planning and policymaking.

The Panzar-Rosse Statistic Revisited

In this note, we prove that even if the technology of firms exhibits increasing returns to scale, the Panzar-Rosse statistic in a monopolistic competitive market is still available and has a negative value. Further, we show that the statistic would be greater than unity if firms with increasing-returns-to-scale technology were to choose a saddle point under certain conditions. This implies that the value of greater than unity is not actually observed.

The effect of comparative advantage of host country’s industry on multinationals’ M&A vs greenfield FDI decisions

Purpose The purpose of this paper is to argue that comparative advantage of host country’s industry can be one of the significant determinants of the decision on mergers and acquisitions (M&A) or greenfield in foreign direct investment (FDI). Design/methodology/approach The authors extract five-related properties of an industry with comparative advantage in a host nation from Bernard et al.’s (2007) international trade model with heterogeneous firms and attempt to empirically test their roles in a multinational enterprise’s (MNE) M&A or greenfield investment decision, using the inward FDI data set in Korea from 1999 to 2006. Findings The theoretical framework finds that the five properties derived from an industry with comparative advantage in a host country have mixed motives for M&A or greenfield. The empirical results show that selected conventional independent variables generally affect the M&A or greenfield entry mode decision with significance individually and that their impacts become more or less prominent when the authors employ interaction terms combining them with comparative advantages in the industries. Research limitations/implications This implies that MNEs not only consider their own firm-specific advantages or other country-level factors for foreign market entries as the previous research generally found, but also seriously take into account industry-specific factors, especially industry-wide comparative advantages based on heterogeneous productivities of firms. Originality/value This paper reconciles multinationals’ strategic motives under an oligopolistic market with their efficiency gains under a monopolistic competitive market, which are considered as two main factors for cross-border M&A. Furthermore, this paper adds a new firm-level data set into entry mode research.

Editorial (Thematic Issue: Understanding Consumer Expectations and Reducing Asymmetry Between Consumers and Producers: A Challenge for Food Producers in a Monopolistic Competition Market)

Editorial (Thematic Issue: Understanding Consumer Expectations and Reducing Asymmetry Between Consumers and Producers: A Challenge for Food Producers in a Monopolistic Competition Market)

Price optimisation of cloud computing service in a monopolistic competitive market

We present an analytical study on services price competition in the cloud computing monopolistic markets. Our aim is to prove the existence of an equilibrium price in such competitive and non-cooperative markets, which maximizes the social welfare by the attraction of users and maximization of providers' profits without disturbance of competing providers. We propose a set of offline algorithms that converge with optimal cost to this equilibrium price.

OPTIMAL STOCK MODELING FOR NON-FOODS RETAILER SELLING ON-CREDIT

The article is dedicated to the problem of retail stock optimization within mo-nopolistic competition market while selling non-food goods to customers on-credit. Optimization model has been developed and appropriate technique of stock volume planning has been introduced

The structure of Ontario's higher education market

Similar to many other institutions in a market economy, colleges and universities operate in their own 'marketplace'. The purpose of this paper is to provide analysis of the structure of Ontario's higher education market that is dominated by publicly funded universities. The theoretical framework for this paper is based on the theories of perfect and imperfect competition market structures. Analysis in this paper shows that Ontario's higher education market has some features of a monopolistic competition market. The paper also shows that other market structures (e.g., perfect competition, monopoly, oligopoly, and monopsony) do not represent Ontario's higher education market. While this market structure might not be consistent with the profit maximisation feature in a monopolistic competition market, analysis shows that it is consistent with other features. The combination of competition (many suppliers or institutions) and monopoly (product differentiation) can be seen in the market of higher education in Ontario.

Trade, economic geography and the choice of product quality

The present paper studies the effect of the choice of product quality on trade and location of firms. We discuss a model where consumers have preferences for the quality of a set of differentiated varieties. Firms do not only develop and sell manufacturing varieties in a monopolistic competitive market but also determine the quality level of their varieties by investing in research and development. We explore the price and quality equilibrium properties when firms are immobile. We then consider a footloose capital model where capital is allocated to the manufacturing firms in the region offering the highest return. We show that the larger region produces varieties of higher quality and that the quality gap increases with larger asymmetries in region sizes and with larger trade costs. Finally, the home market effect is mitigated when firms choose their product quality.

COMPETITION IN THE ALBANIAN BANKING MARKET

The objective of This Paper is to analyze competition in the Albanian banking market refering the period 2009-2013. To determine what we have in this market structure, monopolistic competition or oligopoly market structure. If we have an oligopoly form what features it has compared to the classical form of oligopoly and fair competition affects. The period is analyzed coincides with the apparent decline rate of increase of the GDP and the global recession. This objective sought to be achieved by using a set of coefficients that index and provide some degree of concentration of the main indicators of the banking system. So are using CR concentration coefficient, the Herfindahl index of concentration -Hirschman, Hall-Tideman, CCI industrial concentration, the Gini index, etc.Pearson Correlation Coefficient. Through these indices examine the extent of concentration and degree of connectivity between synthetic indicators. The conclusion of the analysis is that the banking market have a special kind of oligopoly and monopolistic competition does not have. This situation is reflected in the volume of loans, deposits to each of them to the total system, the high interest rates on loans and lower deposit. Reactions reflected in Commercial Banks indifferent to the expansionist policy of the Central Bank over the years etc. DOI: 10.5901/mjss.2014.v5n22p57

Technical Progress, Urban Unemployment and Heterogeneous Firms

We construct a general equilibrium model of urban unemployment with a continuum of heterogeneous urban firms producing differentiated products in a monopolistic competitive market. We introduce a notion of pattern of technical progress among the heterogeneous urban firms and show that this pattern plays a crucial role in determining the effects of urban technical progress in a developing economy. In particular, we show that the possibility of immiserizing technical progress depends on the pattern of progress among the heterogeneous urban firms.

General equilibrium analysis of trade and environment under alternative market structure: a computable general equilibrium study for India

The Author(s) 2013. This article is published with open access at Springerlink.com Abstract The purpose of the present paper is to understand general equilibrium implications of inter- national trade and globalization on social welfare and environmental emission caused on account of energy consumption by production sectors and domestic households. We applied computable general equilib- rium (CGE) modelling as our relevant methodology following Shoven and Whalley (J Econ Lit XXII: 1007-1051, 1984). Constructing an energy/environ- mental social accounting matrix (SAM), paper attempts to purport the effects of liberalized trade over different macroeconomic aspects, energy con- sumption and green house gas emission through an environmental CGE model logically based on SAM. Attempts have been made to simulate various trade related policies like import liberalization, foreign capital inflow and use of energy saving technologies for examining the impact over macroeconomic vari- ables and domestic physical environment under both perfect and monopolistic competition market structure assumption.

Endogenous risk in monopolistic competition

We consider a model of financial intermediation with a monopolistic competition market structure. A non-monotonic relationship between risk measured as a probability of default and the degree of competition is established.