Monopolistic Competition Market Research Articles

Institutional Ownership and Concentration of Capital in Pharmaceutical Companies: Evidence from Iran

Background: Institutional owners influence the direction of policy and the performance of owned companies. This research was motivated by the presence of pharmaceutical companies in the Tehran Stock Exchange and the uncertainty surrounding the extent and influence of institutional owners on the policy direction and performance of the companies. Methods: This was a descriptive-analytical and cross-sectional study. The descriptive phase of the study involved measuring sales figures, market value, and market share of pharmaceutical companies listed on the stock exchange. In the analytical phase, the network of shareholders' relationships was analyzed with Gephi version 0.1 and Microsoft Excel version 2016, followed by the calculation of the capital concentration index and market share. Results: Estimates indicated that approximately 45% of the pharmaceutical companies in Iran were publicly traded in stock exchange. In 2020, the total value of these companies in the Iranian capital market reached 9.79 billion USD. Out of this amount, 45% (equivalent to 4.4 billion USD) was offered in Tehran Stock Exchange. The concentration of final shareholders, with a Herfindahl–Hirschman index(HHI) index of 0.036, signified a monopolistic competition market. On the other hand, the pharmaceutical capital market could be classified as an oligopoly market (with a value of 58.3) when analyzing only the direct shareholders at level 2. Additionally, the six main holding companies at this level collectively possess 67% of the pharmaceutical capital market. Conclusion: Based on the results, the importance of institutional owners, such as the Social Security Organization (SSO), in the decision-making process regarding the Iranian pharmaceutical market can be acknowledged. The decisions about integration and supply chains which aimed at improving the productivity of the pharmaceutical market, need to be thoroughly examined by the institutions mentioned in this research.

Large-scale land development of landed housing and apartment based on developers networking in Jabodetabek

The immense development of residential land in Jabodetabek and unreasonable property prices indicate an uncompetitive housing market. It argues that the phenomenon of oligopolistic market condition, either in the property or land market, is bridled by a minority of developers. It is reinforced by the emergence of a network formed among the development firms. In order to deliberate developer’s network, we incorporated institutional land development study approach, market structure and business competition theory. Subsequently, social networks analysis among large-scale housing developers will be explained. This study revealed out that the development of residential land was found to lead into a more competitive climate with monopolistic competitive market type. Four investigations: multiple positions; stock ownership; consortium; and kinship, were selected to divulge a large-scale housing developer network that are formed either directly or indirectly. The network created a semi-oligopolistic type of land domination. A few well-known developers became the dominant actors through landed housing and apartment developers network. The emergence of this network phenomenon is indicated by poor regulations and its institutions. Moreover, policies regarding spatial planning and business competition have not been integrated yet.

Marketing Analysis of Big Chilli in Sembalun District, East Lombok District<b></b>

The aim of this research is to analyze the structure, behavior and performance of the large chili market in Sembalun District, East Lombok Regency. With 80 farmer respondents and 37 marketing institutions consisting of 17 collectors, 8 wholesalers and 12 retailers. The data sources used are primary data and secondary data. The method used in this research is snowball sampling. The research results show that the large chili market structure in Sembalun District is classified as a monopolistic competition market structure. The market behavior of the large chili buying and selling process in Sembalun sub-district forms six types of marketing channels involving five marketing institutions. The longest channel is the first channel, namely from Farmers - Village Level Collectors - District Level Collectors - Retailers and then Consumers. Prices for large chili commodities tend to be determined by traders. The most efficient performance of the large chili market in Sembalun District, seen from the indicators of marketing margin, farmer share and profit to cost ratio, is the VI marketing channel, namely farmers directly to consumers.

Analyzing the Influence of Bank Competition on Credit Risk: Perspectives from Indonesia's Dual Banking System

This study analyzes the effect of competition banks on credit risk in the dual banking system in Indonesia. This research was conducted using a purposive sampling technique in selecting a sample of 5 conventional commercial banks and 5 Islamic commercial banks. The method used is the Generalized Method of Moments (GMM) from 2011 to 2020. Credit risk for Conventional Banks is measured by the value of Non-Performing Loan (NPL), while Islamic Bank Financing is measured by the value of Non-Performing Financing (NPF). The results of this study indicate that Return on Assets (ROA) for Conventional Banks and Islamic Banks has a significant effect on credit risk in the dual banking system, Loan to Deposit Ratio (LDR) for Conventional Banks does not have a significant effect on Non-Performing Loan (NPL) while Financing to Deposit Ratio (FDR) of Islamic Banks has a significant level 2 influence on Non-Performing Financing (NPF). Bank size does not have a significant influence on credit risk in the dual banking system, and the Lerner Index for Conventional Banks has a significant effect on Non-Performing Loan (NPL), while the Lerner Index for Islamic Banks has no effect on Non-Performing Financing (NPF). The Central Bank in making policies can see that the level of competition for banks in the dual banking system in Indonesia is categorized as a monopolistic competition market, where each bank has its own market segment so that it has market power that is strong enough to set prices that are relatively.

Potential market failures in the Portuguese wine industry

The wine industry is characterized by a monopolistic competition market structure, with high product differentiation. In this study, based on the predictions of microeconomic theory as applied to market equilibrium and market failure, the statistical data on production, trade and domestic consumption, as well as the governance model adopted, were analyzed. The main goal was to examine potential market failures in the Portuguese wine industry, concentrating mainly on those related to information asymmetry and transaction costs. The analysis shows that while Portugal constitutes a significant source of low-priced wines, both for its home consumers as well as for those abroad, most wines lack reputation and therefore have little potential to transfer value to upstream economic agents, and almost no possibility of increasing consumers’ willingness to pay. Though there is detailed information on production, exports and trade, limited information exists on domestic consumption. Given the small dimension of some wine regions, the governance model adopted does not benefit from scale economies and requires higher transaction costs.

An Analysis of the Worlds Economic and Financial Development Tendency

Based on different conditions, economic growth is changing a lot, and many studies focus on the economics of the world to identify the tendency. The paper will discuss the economic and financial tendency of the 21st century. The paper will conduct a detailed analysis on the micro-economic and macroeconomic sides based on existing literature and statistical data. First, the paper discusses the various types of markets in microeconomics, such as the perfect competition market, the monopolistic competition market, the oligopoly market, and the monopoly market. Second, will come from macroeconomics, which includes the financial crisis, the GDP of each country, and the increase tendency of countries in the future. The results indicate that the future economy and finance will have a trend toward overall improvement and sustainable development. It can be seen from the development trends of national industries, large companies, GDP, etc. However, there will also be potential challenges that require the adjustment of national policies and the cooperation of enterprises.

Trade Implications on Active Pharmaceutical Ingredients (APIS) Due to COVID-19 Pandemic and India China Altercation

ABSTRACT: India's pharmaceutical sector has been one of the largest manufacturers of generic drugs globally. During the pandemic, most countries were dependent on imports of generic drugs from India. However, India has been relying on resources from China for Active Pharmaceutical Ingredients (APIs) which are the raw material for preparing generic drugs. We considered, in our analysis, branded product groups of Paracetamol and Amoxicillin due to their extensive use in the treatment of COVID-19. From a thorough market analysis of both the drugs, we conclude that firms have a monopoly over their brands but compete within the same product group and operate in their respective market under varying prices within certain bandwidths which resembles the feature of monopolistic competitive market. We have introduced compensating function a la Helpman (1981) in the pharmaceutical goods market with the assumption that an 'ideal product' exists among the pharmaceutical goods. Given the framework, this paper explores a general equilibrium model set in a monopolistic competitive product market for branded drugs. We concluded through our propositions that expanding the pharmaceutical sector will increase the employment of unskilled labor under no capacity constraint. We will observe an increase in wages of unskilled labor only under full employment conditions wherein we would observe that the expansion of pharmaceutical good will increase wages in the unskilled labor market. However we obtain an intriguing result wherein we obtain that despite instances of limiting trade dependence on China through implementation of policies like 'Aatmanirbhar Bharat' and 'profit linked incentive schemes', yet to maintain the status quo in the global market for generic drugs, India's dependence on China would increase, owing to API imports due to the pandemic crisis. While India can grab the opportunity in the form of increased demand for pharmaceutical goods to increase the employment level of the economy but this improvement in welfare is also dependent on the degree of dependency of API India has on China. The Indian government has recognized the same through the incorporation of 'Covid-Suraksha' and PLI schemes to minimize import dependency, and accelerate the development of APIs and the production of indigenous drugs.

The Analysis of the Harm Caused by Companies Influencing the Spread of Public Crises for Profit in Monopolistic Competitive Markets

It is well known that public crises pose a threat to all citizens of an area, including threats to human safety, property damage, social panic, etc. Public crises are sometimes inevitable, but in a monopolistic competitive market, some companies make profits by influencing the spread of public crises. Such behavior sometimes increases the threat of public crises to citizens, expands the scope of public crises, and even creates new public crises. This paper attempts to analyze the relationship between companies and the spread of public crises under the monopolistic competitive market. First is to define the public crisis and the monopolistic competitive market, then discuss how companies affect the spread of the public crisis under the monopoly market competition, what its purpose is, and what kind of impact it will have on citizens. Finally, this paper will propose ways to reduce the harm that companies do to the spread of public crises.

Competition and Market Contestability in Ghanaian banking industry: A Panzar-Rosse Approach

The present study evaluates the market structure of Ghana’s banking industry and estimates the nature and degree of competition. This study uses non-structural methodology proposed by Panzar-Rosse Model known as “H-statistic” to empirically assess competitiveness in the Ghanaian banking market. The study uses 23 banks in Ghana from 2000 to 2019, compiled and reported by Ghana Association of Bankers (GAB). The study results show that banks in Ghana derive their revenue in conditions of monopolistic competition. Thus, Contestable markets theory and Chamberlainian competition theory are validated by the study results. Furthermore, the study results revealed that from 2000 to 2019, after various structural reforms including the implementation of the FINSAP, competition in the Ghanaian banking sector increased. Finally, when the dataset was decomposed into local and foreign banks, the results indicate that monopolistic competition market conditions are found for both local and foreign banks. Managerially, the presence of a monopolistic market condition adds to the call for managers of the banks to consider factor input prices in an attempt to generate more revenues. Second, to avoid negative consequences of competition, managers of these banks should not rely on a single income source but also indulge in non-intermediation activities. In terms of policy, pro-structural shift policies that have helped with the transition from a monopoly structure to a monopolistic competition free entry or contestable market structure should be rigorously pursued by the policymakers. Besides, policy directives that enhance greater consolidation in the banking sector shouldbe pursued rigorously. Finally, the results from this study could help policy-makers to fashion an appropriate optimal intervention and stability policies geared towards enhancing banking stability at different levels of bank competition.

Market position of public television in post-transition countries of the European Union from 1995 to 2019

Public television is present in every European country, and it position on the market has been changing during the process of transition from monopoly to oligopoly and further towards monopolistic competition market. In most transition countries of the European Union, this process started in early 1990s and today public television represents only one player on the market. This paper analyzes the position of public television in 8 countries: Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Slovakia and Slovenia for the period from 1995 till 2019. The goal of this research is to analyze the changes in the market share of public television, as well as to compare public television position in these 8 countries. This will be done by applying descriptive statistic methods on the data about audience. The audience represents the market share, and it is analyzed on the level of each public TV channel. Countries are further divided into three groups, those with strong, middle and weak position of public television. Additionally, concentration analysis based on HHI will show how similar or different these markets are. The results show that the market power of public television has fallen in the analyzed period. Despite of that, in the majority of the 8 analyzed countries, public television still plays an important role on the market.

Analysis of Demand and Estimation of Market Structure of Beef Trading Business in Bandar Lampung City

Aims of this study were 1) to determine the effect of beef price, other goods prices, and consumer tastes on the amount of beef demand and 2) to determine the market structure of the beef trade industry in Bandar Lampung City. The analytical method used was multiple linear regression with variables : the beef price of, other goods price, and consumer tastes. The variable price of beef has a t-statistic value (2.222) The variable price of other goods has a t-statistic value (2.379)> t-table (1.664) and the consumer taste variable has a t-statistic value (9,565) > t-table (1.664). The three variables have a t-statistic value > t-table (1.664) and the results of F-statistics (33.884) > F-table (2.49), so the results of this study indicate that together the variable price of beef, the price of other goods and consumer tastes have a positive and significant effect on beef demand in Bandar Lampung City and based on the results of the Relative Mean Deviation Intercept on beef trade in the market of Bandar Lampung City by 44.23%, with the rule of decision 42.54%, The market structure of the beef trading business in the Bandar Lampung City market is classified as a Monopolistic Competition Market

Measurement of Competitiveness and Market Concentration of Indonesian Banking Sharia

This study aims: (1) The extent of competitiveness of sharia banking in Indonesia's current economic development; (2) How far the strength of the sharia banking market in Indonesia today. The research conducted to measure the competitiveness of sharia banking in Indonesia and market forces encountered, using the observation period 2010-2016, and the data used is time series and cross section data. The research design used in research is quantitative research, by using model Lerner Index, PR-H Statistics Model, and multiple regression. Based on the results of the study, 1. Using the Lerner index model, for 10 Indonesian sharia banks, especially murabahah products with observation period 2010 - 2016, shows that the competitiveness of Indonesian sharia banks is still very low. The Lerner index for each sharia banks with competitiveness of murabahah products is Bank Mega Sharia, Bank BRI Sharia, Maybank and BSM. As for other sharia banks is still very low; 2. The measurement of market forces using the PR-H Statistics model, murabahah products of Indonesian sharia banks during 2010-2016 fall into the category of the monopolistic competition market. This indicates that, the murabahah product of each sharia banks is basically almost the same, only slightly differentiated by the deficited products in such a way between one bank and another bank; 3. Regression result model of factors affecting competitiveness, only ROA variable that influence to competitiveness, it shows that ROE variable, capitalization and efficiency not become determinant of competitiveness of a bank, especially for murabahah product.

Analysis of the oil market and the impact of integration processes on socio-economic development indicators of Russia

In modern conditions oil and gas sector is not only the largest sector of the economy, also this industry plays an important role in social and economic development of the state. In this regard, there is a need for effective regulation of the oil and gas complex, in particular, the state regulation. Market concentration indices CR-3, CR-4, Herfindahl-Hirschman index, Hall-Teidman index and Lind index have been calculated for competitive environment analysis. Having analyzed the competitive environment of the Russian oil market in 2015-2019, it was possible to find out that the Russian oil market in 2015-2016 was moderately concentrated, in 2017-2019 - highly concentrated; during the whole period under consideration the Russian oil market was a monopolistic competition market. The study also analyzed the impact of integration processes on the indicators of socio-economic development of the country. The analysis revealed that gross domestic product (GDP) and consolidated budget revenues are moderately strongly influenced by integration processes on the oil market; the volume of oil production with gas condensate is moderately influenced by them. At the same time, integration processes in the oil market do not have a significant impact on economic growth and foreign trade balance.

Competitiveness in the European Consolidated Banking Sector After the 2008 Financial Crisis

Abstract The constitutional conception of market integration within the European Union entails creating a level playing field for competition in the consolidated banking sector. The financial crisis of 2008 brought with it the need to proceed with care as it rolled back the gains of improving competitive conditions in the financial sector. Even though a lot of studies have investigated competitive conditions prior to the crisis, the same cannot be said of periods after the crisis. Using both structural and non-structural measures of competitive conditions, this study found that the consolidated banking sector in Europe shows signs of a monopolistic competitive market structure based on its revenue and cost measures. As five countries – United Kingdom, France, Germany, Spain, Italy – control about 70 per cent of total assets in the consolidated banking sector. The capital expense to fixed assets and total assets in the Europe area were found to be negatively related to measures of profitability in the sector. They were indicating that the accumulation of assets eats into the incomes of banks in the sub-region, whereas bank exposures may be affecting bank profits.

Television Advertisement of Bangladesh: Viewers Attitudes and Behavior

Television advertisements have become an imperative medium of advertisements to all types of products and services. TV channels are performing business in the monopolistic competition market. Different TV channels are telecasting different programs at their scheduled time having sponsorship from different advertisers. The effectiveness of advertisements depend on how many viewers are watching the particular advertisement with full attention and receiving the messages manufacturers are sending to their target customers. The paper reveals that 82 percent respondents agree with don’t watch TV ads with full attention; 89.13 percent respondents agree with TV ads are frequently irritating, and statistically found strong relationship via chi-square. In this case the viewers showing varieties of their attitudes towards the TV commercials both positive and negative. TV advertisements will be meaningful when the mass people will enjoy the advertisements and feel attraction to have their necessary information rather than irritating.

Can strengthening the local content requirements meet a government’s need to raise industrial productivity and production?

ABSTRACT By taking firm heterogeneity in productivity into account in a monopolistic competition market in a general-equilibrium model setting, this paper investigates whether a stricter local content requirements (LCRs) can increase both productivity and production in the domestic intermediate-goods industry. The result shows that stricter LCRs policy cannot simultaneously increase both. The initial level of LCRs plays an important role in policy effectiveness. If it is below a critical level, a stricter LCRs can increase production but decrease productivity; however, production decreases but productivity increases if the initial LCRs are higher than the critical level.

Technological Advance, Economic Growth and Anti-trust of Intellectual Property

In market economy, there are four types of markets: perfect competition, monopolistic competition, oligopoly, monopoly. The main differences among them are the ability to set price, barrier to enter and exit the market, numbers of companies. To study innovation’s efficiency in these markets, it is necessary to understand their special characteristics. To simplify the problem, when patent is employed, only the innovation company has the access to this new technology. When it does not exist, every company in the market can use the new technology. In perfect competition market, there are no barrier to enter or exit and lots of companies producing identical products, so no company can set the price. Because there is no barrier, companies that can earn profit will enter the market, which decreases the price. Eventually, all companies’ marginal cost, average cost and marginal benefit is equal to the price, average benefit. In other words, companies in perfect competition market earn zero economic profit. Social welfare is always maximum in this type of markets. In this case, when one company discovers new production technology, other companies will follow immediately. Lower cost causes higher supply, which makes the price decrease and equal to the average cost eventually, leaving every company having zero economic profit, including the first company discovered the new technology, so there is no incentive for any company to spend resource on innovation. However, consumers’ welfare would increase because of lower price. When patent is employed, one company can produce products in a lower price and earn certain economic profit, but can hardly make an influence on the market because there are too many suppliers. Thus, in perfect competition market, patent is a good way to provide incentives for innovations. In monopolistic competition market, there are lots of companies selling slightly different products. The difference among products enables one company to increase the price over in a limited range, so monopolistic competition market is inefficient. In this type of markets, there are two types of innovations: technology and product. The former one reduces the cost and has the same consequence as that in perfect competition market. The latter one, product innovation, makes the product more special, giving the company more market power. However, without patent, product innovation will be copied easily, making the original product less special and canceling out the market power gained by the original company. Since there is no economic benefit, there is no incentive for any company in the market to innovate. When patent is employed, products’ difference is kept and gives the company more market power since there is consumer preference in monopolistic competition market. This increase of market power is not as negligible as that in perfect competition market, so the market becomes less efficient when the company with patent increases the price. In oligopoly market, there are only a few companies with great market power, so all of them can set the price. In this market, companies make decision based on both output and price effects. Output effect means when price is higher than marginal cost, companies can increase profit by increase its output. Price effect means when a company increases its output, the market price goes down, causing less profit for the company. When output effect is more impactful than price effect, companies will increase sales. When price effect is more impactful than output effect, companies will decrease sales. Oligopoly market can be inefficient without restrictions. Regarding innovations, there is still no incentives without the presence of patents. With patent, innovation company will gain market power that is huge enough to cause inefficiency and even to force other companies to exit the market. Thus, patent in oligopoly market will cause negative impact on society, which should be limited. The last type of markets if monopoly. In monopoly market, there is only one company, so patent is necessary. When this company innovates and decreases its production cost, it will tend to increase its output to maximize profit, which enlarges consumers’ welfare. However, this increase is not as much as that in perfect competition market, so innovation in monopoly market is still inefficient.

Aura Bengkang Enterprise: How a Tapioca Cake Business Taps Its Creativity to Stay Competitive

The case opens with the founding CEO of Aura Bengkang Enterprise, Hafiz, urgently assessing his sudden disruption of tapioca supply due to unforeseen massive floods. The unexpected disruption threatens Aura’s production of baked tapioca cakes, its main product. Hafiz is then confronted by one of his cake distributors pulling Aura’s products from her stall. The case is set against the backdrop of challenges faced by manufacturing small-and-medium enterprises in the food and beverages manufacturing sector. The case is an amalgamation of the entrepreneurship and economics disciplines. The case focuses on two particular areas within the two disciplines: (i) entrepreneurial creativity/innovation (ii) monopolistic competition. The marriage of these two disciplines has been found wanting, especially in Malaysian teaching cases. The case contributes to the pool of teaching cases which transcend multidisciplinary dimensions. The two issues facing Hafiz are aligned with the case’s three learning objectives. These objectives are themselves a step-by-step guide for the students to first explain the concepts of entrepreneurial creativity/innovation, and second, to explain the attributes of firms operating in a monopolistic competition market. The third learning objective is to help the students utilize their knowledge to recommend solutions to the issues.

Kebijaksanaan dan Pengaruhnya Terhadap Kinerja Perusahaan Industri Fotografi di Kota Bandar Lampung

This study aims to analyze the market structure and application of company policies in the photography industry in Bandar Lampung City and their effects on business performance. The first analytical tool used is the Herfindahl Index and Market Share to measure the market structure. Second, correlation analysis to measure the relationship between market structure and the achievement of targets for the implementation of company policy. Finally, multiple linear regression analysis to measure the effect of the target achievement of the implementation of company policy on business performance. The results showed that: (1). The structure of the photography industry market in Bandar Lampung City is a monopolistic competition market with a Herfindahl Index = 0.06103 approaching 0; (2). The market structure has a low correlation with the achievement of the target of applying price policy Rxy <0.5), and (3). The achievement target of the implementation of company policy (price policy, product policy, marketing and promotion policy, service policy to consumers) has a significant positive effect on business performance.

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.