scholarly journals Dominance and Competitive Bundling

2019 ◽  
Vol 11 (3) ◽  
pp. 1-33 ◽  
Author(s):  
Sjaak Hurkens ◽  
Doh-Shin Jeon ◽  
Domenico Menicucci
Keyword(s):  
Market Share ◽  
Price Competition ◽  
The Other

We study how bundling affects competition between two asymmetric multi-product firms. One firm dominates the other in that it produces better products more efficiently. For low (high) levels of dominance, bundling intensifies (relaxes) price competition and lowers (raises) both firms’ profits. For intermediate dominance levels, bundling increases the dominant firm’s market share substantially, thereby raising its profit while reducing its rival’s profit. Hence, the threat to bundle is then a credible foreclosure strategy. We also identify circumstances in which a firm that dominates only in some markets can profitably leverage its dominance to other markets by tying all its products. (JEL D43, K21, L13, L41)

Benefits of Customer Loyalty in Markets with Endogenous Search Costs

2020 ◽  
Author(s):  
Dmitri Kuksov ◽  
Mohammad Zia
Keyword(s):  
Market Share ◽  
Customer Loyalty ◽  
Price Competition ◽  
Academic Research ◽  
Search Costs ◽  
The Other ◽  
Search Cost ◽  
Negative Effect ◽  
Small Advantage ◽  
Loyal Customers

Managers have long appreciated having loyal customers, and academic research has explored the benefits of loyal consumers as coming from reduced price competition. This paper extends this research by considering how loyalty affects firms’ decisions to facilitate search for nonloyal consumers. We show that in equilibrium, the store with more loyal customers ends up having lower search costs even if facilitating search is costless. The intuition for this result is that nonloyal consumers expect higher prices at a store with a larger loyal segment, and therefore, this store has to set a lower search cost to counteract the negative effect of this expectation. Given this, it is optimal for the other store to set a higher search cost to avoid intensifying price competition. As a consequence, a larger loyal segment may lead to both higher prices and a higher market share among nonloyal customers. In other words, an advantage in customer loyalty leads to the store becoming the search hub of the nonloyal customers. This, in turn, implies that even a small advantage in customer loyalty may lead to a large increase in profits and may help explain why some managers place such a high value on earning customer loyalty. This paper was accepted by David Simchi-Levi, marketing.

Industry Specialization by Auditors

1999 ◽  
Vol 18 (1) ◽  
pp. 1-17 ◽  
Author(s):  
Chris E. Hogan ◽  
Debra C. Jeter
Keyword(s):  
High Risk ◽  
Market Share ◽  
Scale Economies ◽  
The Other ◽  
Industry Specialization ◽  
Audit Market ◽  
Audit Firms ◽  
Regulated Industries ◽  
Concentration Levels ◽  
Over Time

Dramatic changes in recent years in the audit market suggest the timeliness of an investigation of trends in auditor concentration and an extension of prior research (e.g., Danos and Eichenseher 1982). In recent press, large audit firms have claimed that specialization is a goal of increasing importance. Peat Marwick, for example, has restructured along industry lines, claiming to be recruiting professionals for national teams of multidisciplinary experts organized to “focus on the same industry to serve clients optimally.” On the other hand, litigation concerns might prompt auditors to diversify their risks by diversifying their clientele. In this study, we examine trends in industry specialization from 1976 to 1993 and the industry factors which may affect specialization; whether market share increases are greater for audit firms classified as specialists; and whether the nation's largest audit firms have increased their market share in the industries which they have identified as their focus industries. We find evidence that concentration levels have increased over this period, consistent with the claims of the large audit firms. We find that auditor concentration levels are higher in regulated industries, in more concentrated industries and in industries experiencing rapid growth, but lower in industries with a high risk of litigation. Levels of concentration have increased over time in nonregulated industries providing evidence that scale economies or superior efficiencies of heavy-involvement auditors are not limited to regulated industries but extend to nonregulated industries as well. We also find that for the audit firms classified as market leaders at the beginning of the year, market share has increased over time, whereas market share has declined for firms with a smaller share at the beginning of the year. This suggests that there are returns to investing in specialization.

scholarly journals Competitive Effects of Mass Customization

2012 ◽  
Vol 10 (1) ◽  
Author(s):  
Oksana Loginova
Keyword(s):  
Product Differentiation ◽  
Mass Customization ◽  
Operations Management ◽  
Price Competition ◽  
Comparative Statics ◽  
Consumer Involvement ◽  
The Other ◽  
Fixed Cost ◽  
Competitive Effects ◽  
Customized Products

Abstract The existing theoretical literature on mass customization maintains that customization reduces product differentiation and intensifies price competition. In contrast, operations management studies argue that customization serves primarily to differentiate a company from its competitors. Interactive involvement of the customer in product design creates an affective relationship with the firm, relaxing price competition. This paper provides a model that incorporates consumer involvement to explain the phenomena described in the operations management literature.Two firms on the Hotelling line compete for a continuum of consumers with heterogeneous brand preferences. An exogenously given fraction of consumers is potentially interested in customization. Consumer benefits from customization are the rewards from a special shopping experience and the value of product customization (a better fitting product); these benefits are higher for consumers located closer to the customizing brand. When a consumer purchases a customized product, he/she incurs waiting costs. Each firm simultaneously decides whether to offer standard products, customized products, or both, and then engage in price competition. I show that customization increases product differentiation, leading to less intense price competition. Depending on the parameter values, in equilibrium either both firms offer customized products, one firm offers customized products and the other standard and customized products, or one firm offers customized products and the other standard products. I perform comparative statics analysis with respect to the fraction of consumers interested in customization, the waiting costs, and the fixed cost of customization.

Endogenous Timing in Vertically-Related Markets

2018 ◽  
Vol 18 (2) ◽  
Author(s):  
Hong-Ren Din ◽  
Chia-Hung Sun
Keyword(s):  
Social Welfare ◽  
Price Competition ◽  
Consumer Surplus ◽  
The Other ◽  
Endogenous Timing ◽  
Price Strategy ◽  
Quantity Competition ◽  
Sequential Game ◽  
Product Substitutability

Abstract This paper investigates the theory of endogenous timing by taking into account a vertically-related market where an integrated firm competes with a downstream firm. Contrary to the standard results in the literature, we find that both firms play a sequential game in quantity competition and play a simultaneous game in price competition. Under mixed quantity-price competition, the firm choosing a price strategy moves first and the other firm choosing a quantity strategy moves later in equilibrium. Given that the timing of choosing actions is determined endogenously, aggregate profit (consumer surplus) is higher (lower) under price competition than under quantity competition. Lastly, social welfare is higher under quantity competition than under price competition when the degree of product substitutability is relatively low.

Positive motivation to harm

2018 ◽  
pp. 97-116
Author(s):  
Anthony Lloyd
Keyword(s):  
Competitive Advantage ◽  
Market Share ◽  
The Other ◽  
Ethical Responsibility ◽  
Social Forces ◽  
Structural Deficit ◽  
Status Recognition ◽  
Positive Motivation

This chapter offers evidence to suggest that harm is not something done to precarious workers by social forces and structural deficit but also something inflicted upon each other. The culture of targets and competitive individualism creates the conditions for conflict between managers, co-workers and customers, all of whom seek some degree of status, recognition or security from the infliction of harm on others. Evidence shows managers targeting employees, the emergence of cliques, often management led, which inflict harm on those outside the group, customers willing to belittle, infantilise and abuse employees, and co-workers seeking competitive advantage at the expense of others. This positive motivation to harm reflects the absence of an ethical responsibility for the other and, in some cases, represents the emergence of a subjectivity imbued with the ‘special liberty’ to act as one pleases in order to maximise market share and opportunities within a culture of competition and individual advantage.

scholarly journals Market Share Delegation in a Bertrand Duopoly: Synchronisation and Multistability

2015 ◽  
Vol 2015 ◽  
pp. 1-13 ◽  
Author(s):  
Luciano Fanti ◽  
Luca Gori ◽  
Cristiana Mammana ◽  
Elisabetta Michetti
Keyword(s):  
Market Share ◽  
Discrete Time ◽  
Price Competition ◽  
Initial Conditions ◽  
Two Dimensional ◽  
Discrete Time System ◽  
Multiple Attractors ◽  
Time System ◽  
Market Share Delegation

This paper tackles the issue of local and global analyses of a duopoly game with price competition and market share delegation. The dynamics of the economy is characterised by a differentiable two-dimensional discrete time system. The paper stresses the importance of complementarity between products as a source of synchronisation in the long term, in contrast to the case of their substitutability. This means that when products are complements, players may coordinate their behaviour even if initial conditions are different. In addition, there exist multiple attractors so that even starting with similar conditions may end up generating very different dynamic patterns.

scholarly journals Advertising, Market Share, And Profitability In The Greek Consumer Industry

2011 ◽  
Vol 3 (9) ◽  
Author(s):  
Zoe Ventoura–Neokosmidi
Keyword(s):  
Cross Section ◽  
Market Share ◽  
Empirical Investigation ◽  
Explanatory Variable ◽  
Positive Impact ◽  
The Other ◽  
Firm Profitability ◽  
Fast Moving Consumer Goods ◽  
The Relationship ◽  
Section Analysis

An empirical investigation of the relationship between advertising to sales ratio, market share and firm profitability was carried out. Cross section analysis was used over 36 companies that produce fast moving consumer goods, for the year 2002. This paper finds that market share has a positive impact on firm profitability. In contrast to our expectation, the influence of market share is greater than that of advertising to sales ratio. To further examine the contribution of each explanatory variable after the other has been included in the model, the partial F?test was used. The obtained results verify the cross section analysis results.

scholarly journals Teknologi Pembuatan Abon Ikan Lele Bebas Bau Amis (Penyuluhan dan Implementasi)

2021 ◽  
Vol 6 (1) ◽  
pp. 546-553
Author(s):  
Ristina Siti Sundari ◽  
Andri Kusmayadi ◽  
Budhi Wahyu Fitriadi
Keyword(s):  
Community Service ◽  
Market Share ◽  
Technology Innovation ◽  
Innovation Adoption ◽  
The Other ◽  
Animal Products ◽  
Original Product ◽  
Post Test ◽  
Farmer Groups ◽  
Adoption Level

 Almost people like any fishes, but some do not like the fish rancid even after processing. Catfish shredded is one of the processed processes. Turmeric, ginger, lemon, tamarind, vinegar, starfruit is often used to eliminate the fishy smell, but it still has taste left by itself. Community service was conducted to empower them and cope with the fishy smell problem. So that modified to the new variance beside the original product. Dan largen market share. Women Farmer Group for fisheries processing produces the object due to extension and implementation to adopt the technology innovation about catfish shredded processing to eliminate rancid on a fish odor. We hope this engagement and empowerment will become sustainable and spread out to other women farmer groups and animal products based on our research to raise economic circles. The group had a pre-test and post-test to measure the understanding and innovation adoption level. This engagement resulted in two variances of catfish by original and rancid free enriched with antioxidant of oregano leaf. The other result is that this new variance has more voluminous than the original in the same weight.

Impact of Mergers and Acquisitions on Firms’ Export Competitiveness

2017 ◽  
Vol 18 (1) ◽  
pp. 1-20 ◽  
Author(s):  
Pulak Mishra ◽  
Neha Jaiswal
Keyword(s):  
Mergers And Acquisitions ◽  
Market Share ◽  
Positive Influence ◽  
The Other ◽  
Foreign Technology ◽  
Export Intensity ◽  
Export Competitiveness ◽  
Complementary Assets ◽  
The Impact ◽  
Indian Pharmaceutical Industry

This article attempts to examine the impact of mergers and acquisitions (M&A) on export competitiveness of firms in Indian pharmaceutical industry. It finds that the wave of M&A has positive influence on both incidence and extent of export competitiveness. In addition, incidence of exports is positively influenced by market share and efforts towards creating marketing and distribution related complementary assets as well. On the other hand, the extent of export intensity is also higher for firms with larger market share, greater marketing and distribution-related efforts, innovation and foreign technology purchase. However, advertising and financial performance do not cause any significant impact on export competitiveness. It is, therefore, suggested that policies and regulations relating to M&A, innovation and sourcing foreign technology need a fresh look with greater industry-specific flexibilities. There is also a need for integration of different policies and regulations in areas like FDI, intellectual property, and so on.

scholarly journals Financial and Non-Financial Applications of Blockchain

2020 ◽  
Vol 9 (6) ◽  
pp. 1050-1054
Keyword(s):  
Market Share ◽  
Real World ◽  
The Other ◽  
Huge Number ◽  
The Real ◽  
Financial Applications ◽  
The World ◽  
The Future

There are hundreds of technologies today. Companies and brands continuously try to create and bring something innovative in the market to attract consumers to them in order to get a rise in market share. In the world where people have started getting used to hundreds of technologies, if asked about those which have affected them the most in last ten to twelve years, no one will miss mentioning blockchain. Blockchain has gained very much popularity after the introduction of bitcoin and ethereum in its environment. Blockchain mainly has two types of functionalities. One that involves transactions and the other which talks about contracts. This work highlights some of the very much talked about applications of this technology in the real world. The work also considers various factors and methods by which this technology can be introduced to the audience by suggesting ways in which blockchain can be introduced in the lives. Discussion on how this technology can affect human lives in the future is also an important part of this paper. Because blockchain has huge number of applications that the paper has tried to inculcate, it can be a technology of future which many scientists and industrialists have already started to believe. That is why this work finds a unique and all in one collection of applications and possibilities of Blockchain.

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