Oligopolistic Market Research Articles

The Impact of the Deteriorated Political and Security Situation on the Financial Stability of Arms Companies Operating in an Oligopolistic Market Environment

The Impact of the Deteriorated Political and Security Situation on the Financial Stability of Arms Companies Operating in an Oligopolistic Market Environment

Are random price generators useful for health policy processes and analysis? effectiveness of random price generators in health policy processes and analysis

This paper discusses why using random price generators in an economic model for medical markets may be useful. It summarizes the different steps for the development of the model and describes an original contribution of the physicians’ choice model with random drug prices applied to Type 2 diabetes in the US. Pharmaceutical markets have been supply-driven to boost life science and medical technologies; however, with the widening inequalities inside national health systems and the global agenda for universal health coverage, more economic research is being done to strengthen the analysis of demand for healthcare services. Research, especially, examines more disaggregated levels of demand systems to understand the heterogeneity of physicians’ choices and better capture patient needs. It can also be an approach to calibrate supply and demand adjustments in medical markets. This paper argues that choice modeling is particularly relevant, using random price generators in a structural model where a demand approach is useful. If validated by additional experimental studies, this first study by Professors Huttin & Hausman (2021) could be used in advanced value assessment frameworks. Random price generators on medical markets could also be tested with additional models that fit oligopolistic market structures (e.g., models for differentiated product markets such as the Berry–Levinsohn–Pakes model). It may also help with a policy analysis process that addresses major disruptive transformations of market dynamics, evolving boundaries in science, fast digitalization, and artificial intelligence-based information systems.

Dynamic Market Making with Asymmetric Information and Market Power

Abstract We study the dynamics of trading volume and bid-ask spread using a multiperiod trading model with oligopolistic market makers. Traders smooth out their trading even though they are not strategic, and thus trading persists after the arrival of information or liquidity shocks. Traders act quickly on their private information while postponing hedging trades until later periods. The market power of market makers enables them to widen bid-ask spreads when trading incentives are heightened. Consequently, both trading volume and bid-ask spread may exhibit U-shaped patterns. Our model calibration aligns with the empirical intraday patterns observed in bid-ask spreads and trading volumes. (JEL D53, D61, D82, G12, G14, G18)

Corporate social responsibility in the era of government subsidies: A novel empirical perspective on market competitiveness

AbstractCorporate social responsibility (CSR) is essential for businesses as it builds reputation and stakeholder trust, drives innovation, and contributes to social welfare. This study evaluates the impact of government support on CSR under various scenarios, using a dataset of 98 listed companies from Bangladesh and 111 from China between 2011 and 2023. Theoretical links are established by constructing a model representing an oligopolistic market of privately owned firms. The results suggest that the introduction of government support motivates private firms to comply with social obligations. This theoretical claim is supported by product market competition, which acts as an intermediary. The effect is evident across the whole lifespan of the firm. Furthermore, the correlation is stronger concerning competitive industries, businesses without political ties, and low‐ and medium‐size government subsidies. The results also show that the main channel through which government subsidies affect CSR is product market competition; however, the evidence is country‐specific. This suggests that the efficient allocation of financial resources is of great importance in this situation.

Existence results for a class of quasi-variational inequalities and applications to a noncooperative model

The aim of the paper is to investigate the existence of solutions for the class of strongly pseudomonotone quasi-variational inequalities. The weak Mosco continuity of multifunctions has a key role to reach this aim. As an application, the existence of equilibrium distributions for a dynamic oligopolistic market equilibrium problem with adaptive set of feasible solutions is obtained.

Investigation of Olive Production in Ten-Year Period in 1961-2021 Years

Despite its many nutritional characteristics, the number of countries producing olives is limited owing to the growing conditions. Because the olive is a drought-resistant plant, it is one of the fruits that are least affected by climate change. For this reason, in this study, the production areas and the changes in production among global leading olive producing countries were determined for 1961-2021 years. In addition, the Concentration Ratio (CR) and Herfindahl-Hirschman (HH) indices were used to determine the competitive situation in olive production in this study, while the Revealed Comparative Advantage (RXA) index was used in the competition in fruit production areas. According to research, while 32-33 countries produced olives in 1961-1980, the five leading countries were Italy, Spain, Greece, Turkey, and Portugal/Tunisia. In this period, the HH index was over 1.800, and the share of the five countries was approximately 83.55%. During the 1981-2010 periods 32-38 countries produced olives: Spain, Italy, Greece, Turkey, and Tunisia were the leading countries, while Spain was the premier country. According to the HHI, the market is a monopolistic competition, but according to the concentration ratios, it shows the characteristics of an oligopolistic market. Countries with competitive positions in olive production are listed from strong to weak, such as Tunisia, Greece, Morocco, Spain, Portugal, Italy, and Turkey. While the number of countries producing olives has increased slightly in recent years, conspicuous matters worldwide have been climate change and technological developments in the last years. Considering these situations, countries that reduce costs in olive production and develop technologies that increase yield and quality from unit areas will be one step ahead of the competition. In addition, since this market is generally an oligopoly market, each prolific country will not be disadvantaged by closely following the activities of other countries.

Sustainable use of a smartphone and regulatory needs

AbstractThe significance of information and communication technologies (ICT) for the Paris Climate Agreement is continuously increasing because of its growing energy consumption. Here we examine the question for the smartphone and extend the investigation to more aspects of sustainability. Critical issues are identified for ten UN Sustainable Development Goals. Measurements of smartphone energy consumption show that a significant savings potential can be unlocked by reducing the data outflow and the large amount of personal data stored in data centers. Main discrepancies are also traced to the oligopolistic market structure of operating systems (OSs), messenger services, and social media apps. Technical means for a sustainable smartphone use are suggested as alternative OSs, social media channels of the Fediverse, as well as free and open‐source software. Finally, societal conditions are emphasized to make the market for OSs and apps more diverse so that a sustainable smartphone use can generally prevail.

Folk theorem under bankruptcy

In this paper, we examine Subgame Perfect Nash Equilibria (SPE) within an infinite horizon oligopolistic market, accounting for the possibility of firm bankruptcy. Central to our dynamic analysis is the concept of Bankruptcy-Free (BF) allocations. The consideration of bankruptcy introduces several distinctive features not encompassed by standard models of infinitely repeated games. Notably, when firms are sufficiently patient towards future outcomes, achieving certain collusive outcomes as equilibria may not be possible. We discern qualitatively different results depending on the number of firms in the market; in a duopoly, only specific BF allocations can be sustained as SPE, while in scenarios with more than two firms, allocations outside the BF set can also be sustained as SPE. In both instances, it is crucial that the payoffs are above the minimax BF payoff, a condition more restrictive than the standard minimax payoff advocated in Folk Theorems.

Инновационный подход к созданию и маркетингу международного В2В бренда в условиях олигопольного рынка

статья посвящена исследованию инновационных подходов к созданию и маркетингу международного B2B бренда малого бизнеса в автомобильной индустрии. В частности, раскрываются вопросы укрепления и продвижения бренда малого бизнеса, представляющего под собой нишу в автомобильной индустрии, ориентированную на В2В сегмент клиентов (оказание услуг или реализация товаров бизнесу). Выявляется, что в условиях олигопольного рынка, высокой конкуренции и ограниченности ресурсов для традиционного маркетинга, инструментарий «обычных» методов продвижения становится практически невостребованным в малом бизнесе ввиду низкой эффективности вложений. Определяется, что низкая доступность и эффективность традиционного маркетинга стимулирует малые компании организовывать партизанский маркетинг, основанный на креативности, инновационности, технологичности и не требующий значительных капитальных затрат. Описываются достоинства, недостатки и особенности партизанского маркетинга на примере В2В рынков. Подчеркивается, что партизанский маркетинг становится перспективным и доступным для малого бизнеса способом привлечения внимания и формирования устойчивого бренда, демонстрации долгосрочной направленности и надежности бизнеса. Выделяются некоторые инструменты партизанского маркетинга и отмечаются примеры их применения. По итогам исследования делаются выводы о глобальном значении партизанского маркетинга в решении задач развития присутствия бренда с локальных рынков до уровня международного бренда, востребованного по всему миру. this article explores innovative approaches to creating and marketing an international B2B brand for small businesses in the automotive industry. It specifically addresses the strengthening and promotion of a small business brand that represents a niche in the automotive industry, targeting the B2B customer segment (providing services or selling goods to businesses). It is identified that in an oligopolistic market, with high competition and limited resources for traditional marketing, the toolkit of "conventional" promotion methods becomes almost redundant for small businesses due to the low efficiency of investments. It is determined that the low accessibility and effectiveness of traditional marketing encourage small companies to organize guerrilla marketing, based on creativity, innovation, technology, and not requiring significant capital expenditures. The advantages, disadvantages, and characteristics of guerrilla marketing in the context of B2B markets are described. It is emphasized that guerrilla marketing becomes a promising and accessible way for small businesses to attract attention and form a sustainable brand, demonstrating long-term orientation and business reliability. Some tools of guerrilla marketing are highlighted, with examples of their application noted. The study concludes with the global significance of guerrilla marketing in solving the challenges of developing a brand's presence from local markets to the level of an international brand demanded worldwide.

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.

Notes on random optimal control equilibrium problem via stochastic inverse variational inequalities

The main objective of the paper is to analyze how policymakers influence the random oligopolistic market equilibrium problem. To this purpose, random optimal control equilibrium conditions are introduced. Since the random optimal regulatory tax is characterized by a stochastic inverse variational inequality, existence and well-posedness results on such an inequality are proved. At last a numerical example is discussed.

Market Structure, Profitability and Regulation of Telecommunication Industry in India

The telecom industry in India has witnessed exponential growth in the past decade; however, its profitability has been on the decline post 2008. This study analyzes the determinants of profitability of the industry during 2010–2022 using the conventional structure-conduct-performance paradigm. We estimate a dynamic panel data model to understand the role of endogeneity and profit persistence in the industry. Our findings are contrary to what the theory predicts and highlight the importance of the regulatory and institutional framework of the industry. Results suggest that there is profit persistence in the industry. The study finds that among conduct variables, export intensity has a positive impact while selling intensity has a negative impact on profitability. While size is not significant, concentration has a negative impact on profitability. Import has a negative impact on profitability. These results suggest that as the telecom industry transitioned from a monopoly to an oligopolistic market with players competing in different domains and services, selling and advertisement intensity has diminishing returns to profitability while export intensity emerges as an important driver of profitability. Results also suggest the importance of the production-linked incentive scheme encouraging exports and the need for regulating concentration and encouraging import substitution.

Does unionization reduce wage inequality? New evidence from business dynamism

Incorporating the business-dynamism effect, this paper examines distribution and welfare effects of labor unions. An increase in unionization can raise the unskilled wage rate and lower the skilled wage rate in the economy, and wage inequality can be further reduced by the business-dynamism effect of firm exit. Nonetheless, the inequality-reducing role might be mitigated by the delay of firm exit caused by labor unions. In addition, the rise in unionization can solve the problem of excessive entry in the oligopolistic market, thereby improving welfare of the economy. Using multiple-country panel data, we find a negative relationship between unionization and wage inequality. This finding confirms the theoretical prediction of the inequality-reducing effect of labor unions.

The Price of Anarchy in Oligopolistic Market Equilibrium: The Two-Sided Supply Chain Network Case

Equilibrium conditions for the centralized and for the decentralized oligopolistic markets, which can be viewed as a two-sided supply chain network, are defined and determined. Then after, the price of anarchy (PoA) in oligopolistic market is defined and determined. And more, through numerical simulations, sensitivity analysis on equilibrium results for the centralized and for the centralized oligopolistic market is conducted and a wealth of (but may conflicting) insights are brought forth.

Перспективы развития проектов угледобывающей промышленности Арктической зоны Российской Федерации

The article emphasizes that the development of projects in the coal mining industry is difficult, and first of all,due to rising prices for coal insurance in transit, increasing commercial costs, and logistics imperfections. Russian coal producers strive to increase the quality of finished products and their most efficient marketing. This behavioral attitude to the extraction, processing and enrichment of coal predetermined the position of the organizers of productionas an increase in competitive advantages with a comprehensive upgrade of the material and technical base.Taking into account the specifics of the oligopolistic market that ensures the sale and sale of coal, the proposed coefficients of the economic potential of coal mining organizations consider revising as standards in further research and in practice. The use of the studied coefficients is economically justified, since not all coal enterprises strivefor a comprehensive assessment due to differences in the assessment of energy efficiency, innovation activity, solvency and asset turnover.

Incentives for Levying Countervailing Duties on Foreign Competitive Goods

Objective: The relationships between firm profits, foreign export subsidy, and countervailing duties (CVDs) have not been discussed sufficiently in the existing related literature. The purpose of the present study is to analyze the effects of CVDs and formulate policy advice regarding CVDs to fill this knowledge gap. Methods: A game theoretic model with oligopolistic market structure is adopted. Results: The proposed model indicates that when a foreign country provides an export subsidy to a foreign final good, a domestic country has an incentive to levy a CVD whose value exceeds that of the foreign export subsidy on the foreign final good because domestic intermediate- and final-good firms might benefit from the CVD. Conclusions: A CVD whose value equals that of a foreign export subsidy is enough to counter the subsidy’s negative effects on the profits made by domestic intermediate- and final-good firms.

Reflection of the Oligopolistic Market Structure in the Construction of a Financial Model

The specific methodology for determining indicator weights is one of the key components in the construction of any financial model. Given the specificities of the oligopolistic market structure, it is necessary to reflect its existence in the construction of financial models that have the task of establishing the financial performance of oligopolistic companies. It is possible to take into account the presence of the oligopolistic market structure by the choice a methodology for determining the weights of indicators in a specific financial model. In this research paper, a specific mathematical model that takes into account the presence of the oligopolistic market structure is presented.

First‐best health policy in vaccine markets with health and network externalities

AbstractThis paper considers an oligopolistic market for a vaccine, characterized by negative network effects, which stem from the free‐riding behavior of individuals engaged in a vaccination game. Vaccine markets often suffer from three imperfections: high concentration, network effects, and a health externality (contagion). The first conclusion of the paper is that the negative network externality is important as a market distortion, as it may lead to significant welfare losses. The second and main part of the paper develops a two‐part per‐unit subsidy scheme that a social planner could use to target both consumers and producers of vaccines. The scope of such a subsidy scheme to induce the firms to produce the first‐best output without network effects (which is the most ambitious first‐best target) is investigated. In many cases, while the first‐best is attainable, it requires negative prices for vaccines, which amounts to rewarding consumers to induce them to vaccinate.

Negative network effects and public policy in vaccine markets

This paper provides a thorough analysis of an oligopolistic market for a vaccine, characterized by negative (demand-side) network externalities, which stem from the free-riding behavior of individuals engaged in a vaccination game. We investigate industry viability in terms of a standard natural Cournot-type learning process for network industries and show that viability tends to favor monopoly or competition among few suppliers. We confirm that market performance is highly inefficient, due to the combination of three imperfections: market power, network effects and a health externality (i.e., contagion). We investigate the extent of these imperfections. Finally, we devise a two-part government subsidy scheme for producers and consumers that may restore social efficiency in such markets.

Petrol Fiyatlarının Ulaştırma Sektörü Hisse Senedi Getirilerine Etkisi: Türkiye Hisse Senedi Piyasası Örneği

This study examines the impact of crude oil prices on transportation sector stock returns of Turkey. ARDL Bound Test approach is utilized to investigate both long-run and short-run impacts. Research findings show that crude oil prices have an adverse impact on stock returns in short-run since oil is a crucial input for transportation firms. However, in long-run, increasing oil prices enhance stock returns in the sector. This result can be explained by the oligopolistic market structure of the industry. This study also investigated the impact of other factors on stock returns such as macroeconomic activity, aggregate stock market performance, and global economic policy uncertainty. The results imply that transportation sector returns are also highly sensitive to macroeconomic and aggregate stock market performances. Besides its academic contribution to the literature, the findings of this research offer precious practical implications for financial investors, industry stakeholders, and policymakers as well.