Supply side substitutability and potential market power of airports: Case of Amsterdam Schiphol

2012 ◽  
Vol 23 ◽  
pp. 5-12 ◽  
Author(s):  
Volodymyr Bilotkach ◽  
Juergen Mueller
Keyword(s):  
Market Power ◽  
Supply Side ◽  
Potential Market

scholarly journals A Flexible Responsive Load Economic Model for Industrial Demands

Processes ◽  
2019 ◽  
Vol 7 (3) ◽  
pp. 147 ◽  
Author(s):  
Reza Sharifi ◽  
Amjad Anvari-Moghaddam ◽  
S. Fathi ◽  
Vahid Vahidinasab
Keyword(s):  
Market Power ◽  
Electricity Market ◽  
Economic Model ◽  
Imperfect Competition ◽  
Supply Side ◽  
Demand Side ◽  
Renewable Energy Resources ◽  
Constant Elasticity ◽  
Pricing Scheme ◽  
A Company

The best pricing method for any company in a perfectly competitive market is the pricing scheme with regards to the marginal cost. In contrast to this environment, there is a market with imperfect competition. In this market, the price can be affected by some players in the generation/demand side (i.e., suppliers and/or buyers). In the economic literature, “market power” refers to a company that has the power to affect prices. In fact, market power is often defined as the ability to divert prices from competitive levels. In the electricity market, especially because of the integration of intermittent renewable energy resources (RESs) along with the inflexibility of demand, there are levels of market power on the supply side. Hence, implementation of demand response (DR) programs is necessary to increase the flexibility of the demand side to deal with the intermittency of renewable generations and at the same time tackle the market power of the supply side. This paper uses economic theories and mathematical formulations to develop a flexible responsive load economic model (FRLEM) based on real-time pricing (RTP) to show modification of the load profile and mitigation of the energy costs for an industrial zone. This model was developed based on constant elasticity of the substitution utility function, known as one of the most popular utility functions in microeconomics.

Market Power in Agricultural Land Markets: Concepts and Empirical Challenges

2021 ◽  
Vol 70 (4) ◽  
pp. 1
Author(s):  
Alfons Balmann ◽  
Marten Graubner ◽  
Daniel Müller ◽  
Silke Hüttel ◽  
Stefan Seifert ◽  
...  
Keyword(s):  
Market Power ◽  
Agricultural Land ◽  
Negative Relationship ◽  
Production Factor ◽  
Land Market ◽  
Federal State ◽  
Land Markets ◽  
High Concentration ◽  
Potential Market ◽  
Challenges And Opportunities

This paper provides review about challenges and opportunities to assess and quantify market power in agricultural land markets. Measuring land market power is challenging because the characteristics of this production factor hinder the direct application of familiar concepts from commodity markets. Immobility, fixed availability, and large heterogeneity of land and potential users contradict assumptions of fictitious point market for homogeneous goods. Moreover, the use of concentration indicators for policy assessments is hampered by two problems. First, defining the relevant regional size of the market is challenging and concentration indicators are not robust with regard to market size and number of actors. Second, high concentration of land ownership or land operation may point at potential market power, but it may also be the result of an efficient allocation of land due to structural change in agriculture. The aforementioned challenges are illustrated with a case study for the Federal State of Brandenburg in Germany. Using available data for land sales, a regression analysis reveals a negative relationship between land use concentration and farmland prices. This result can be interpreted as an indication of market power on the buyer side in agricultural land markets. However, it is hardly possible to translate this finding into recommendations for land market regulations because the evaluation of the potential misuse of dominant positions in land markets requires a case-specific analysis. Providing evidence for the exertion of market power in land markets is extremely complex and deserves further attention from researchers and politicians.

scholarly journals Estimating the degree of market power in the vegetable market in Japan

2021 ◽  
pp. 1-25
Author(s):  
Yuki Sano ◽  
Takeshi Sato ◽  
Kentaro Kawasaki ◽  
Nobuhiro Suzuki ◽  
Harry M. Kaiser
Keyword(s):  
Industrial Organization ◽  
Market Structure ◽  
Market Power ◽  
Economic Welfare ◽  
Wholesale Market ◽  
Market System ◽  
Oligopoly Model ◽  
Potential Market ◽  
Market Benefits

Abstract To adequately capture the market structure of vegetables in Japan, it is necessary to develop an oligopolistic model due to the potential market power of producers vs. retailers. We first estimate the market power between producers and retailers by extending the bilateral oligopoly model. Next, we evaluate the role of the wholesale market and its effect on economic welfare. Our results indicate that the wholesale market benefits both producers and consumers through a reduction in retail margins. This study contributes to the industrial organization literature by developing a bilateral oligopoly model and empirically measuring the wholesale market system in Japan.

Reviewing the Development of Rural Finance in Vietnam

2013 ◽  
pp. 121-136
Author(s):  
Duong Pham Bao
Keyword(s):  
Low Income ◽  
Financial System ◽  
Low Income Countries ◽  
Supply Side ◽  
New Paradigm ◽  
Rural Finance ◽  
Market Mechanisms ◽  
Rural Credit ◽  
Rural Organizations ◽  
Doi Moi

The objective of this article is to review the development of the rural financial system in Vietnam in recent years, especially, after Doi moi. There are two opposite schools of thought in the literature on rural credit policies in developing countries. One is the conventional supply-side (government-led) approach while the other is called “a new paradigm” that emphasizes the importance of the viability of financial providers and the well functioning of rural credit markets. Conventional theories of rural finance contend that rural finance in low-income countries is generally accompanied by many failures. Contrary to these theories, rural finance in Vietnam does not encounter the above-mentioned failures so far. Up to the present time, it is progressing well. Using a supply-side approach, methodologically, this study reviews the development of the rural financial system in Vietnam. The significance of this study is to challenge the extreme view of dichotomizing between the old and the new credit paradigms. Analysis in this study contends that a rural financial market that, (1) is initiated and spurred by government; (2) operates principally under market mechanisms; and (3) is strongly supported by rural organizations (semi-formal/informal institutions) can progress stably and well. Therefore, the extremely dichotomizing approach must be avoided.

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