Market Power in Discrete-Choice Demand Functions of Banking Services - An Application to Spanish Banks

2009 ◽  
Author(s):  
Alfredo Martin Oliver
Keyword(s):  
Market Power ◽  
Discrete Choice ◽  
Banking Services ◽  
Demand Functions ◽  
Discrete Choice Demand

scholarly journals Heating Costs and Household Wood Stove Acquisition: A Discrete Choice Demand Model

1985 ◽  
Vol 14 (1) ◽  
pp. 65-70 ◽  
Author(s):  
Paul Francis Scodari ◽  
Ian W. Hardie
Keyword(s):  
New Hampshire ◽  
Discrete Choice ◽  
Choice Model ◽  
Operating Costs ◽  
Demand Model ◽  
Wood Stove ◽  
Home Heating ◽  
Fuel Burning ◽  
Discrete Choice Demand ◽  
Wood Stoves

This paper examines the acquisition of wood stoves by New Hampshire households through use of a utility-maximizing discrete choice model. The analysis is based on the hypothesis that wood stoves are acquired to decrease the monetary costs of home-heating. Operating costs associated with heating with conventional fuel burning capital and with a combination of conventional and wood stove heating capital are estimated. These operating costs are used to estimate probabilities of 1979 wood stove acquisition for particular types of New Hampshire households.

Enhancing Discrete Choice Demand Modeling for Decision-Based Design

2005 ◽  
Vol 127 (4) ◽  
pp. 514 ◽  
Author(s):  
Henk Jan Wassenaar ◽  
Wei Chen ◽  
Jie Cheng ◽  
Agus Sudjianto
Keyword(s):  
Discrete Choice ◽  
Demand Modeling ◽  
Discrete Choice Demand ◽  
Decision Based Design

Duopoly Competition with Network Effects in Discrete Choice Models

2021 ◽  
Vol 69 (2) ◽  
pp. 545-559 ◽  
Author(s):  
Ningyuan Chen ◽  
Ying-Ju Chen
Keyword(s):  
Theoretical Analysis ◽  
Market Structure ◽  
Market Power ◽  
Discrete Choice ◽  
Network Effects ◽  
Discrete Choice Models ◽  
Market Participants ◽  
Market Shares ◽  
Long Time ◽  
Antitrust Legislation

It has been realized for a long time that network effects play an important role in how market participants compete with each other. Arguably, companies like Facebook and Google are able to gain immense market power by leveraging the network effects of their consumers, despite potential competitors. This paper investigates how the dynamics play out in duopoly competition. We find that when the network effects per unit of consumption are weak, the competitors can co-exist and gain even market shares. As network effects become stronger, it is unstable, and even impossible, for the firms to coexist, and one firm emerges victorious, taking the majority of the market. The study provides a theoretical analysis for commonly observed market phenomena. It may also have implications for antitrust legislation: Special policies need to be created to maintain a competitive market structure for products and services with strong network effects.

scholarly journals Market Power in the Irish Beef Processing Industry

2021 ◽  
Vol 13 (11) ◽  
pp. 6453
Author(s):  
Rao Fu ◽  
Chenguang Li ◽  
Liming Wang
Keyword(s):  
Market Power ◽  
Marginal Cost ◽  
Supply And Demand ◽  
Beef Industry ◽  
Processing Industry ◽  
Demand Functions ◽  
Export Orientation ◽  
Beef Processing ◽  
Empirical Industrial Organization ◽  
Cattle Farms

Irish beef processors and cattle farmers have been involved in a lasting controversy on power asymmetry. This paper estimates the degree of market power in the Irish beef processing industry. The New Empirical Industrial Organization approach is extended for estimation, and the market power is testified by conjectural elasticity with supply and demand functions, indicating that beef processors exert a significant market power on cattle farms. Export-orientation and high subsidies are two outstanding features in the Irish beef industry. Exports and subsidies are shown in this paper to have an insignificant influence on market power. This paper confirms that beef processors can exercise market power on farmers to lower prices below the marginal cost.

Enhancing Discrete Choice Demand Modeling for Decision-Based Design

2003 ◽  
Author(s):  
Henk Jan Wassenaar ◽  
Wei Chen ◽  
Jie Cheng ◽  
Agus Sudjianto
Keyword(s):  
Discrete Choice ◽  
Market Research ◽  
Ford Motor Company ◽  
Demand Model ◽  
Demand Modeling ◽  
Product Demand ◽  
Demand Models ◽  
Discrete Choice Demand ◽  
Decision Based Design ◽  
Key Customer

Our research is motivated by the need for developing a rigorous Decision-Based Design framework and the need for developing an approach to demand modeling that is critical for assessing the profit a product can bring. Even though demand modeling techniques exist in market research, little work exists on product demand modeling that addresses the specific needs of engineering design in particular that facilitates engineering decision-making. Building upon our earlier work on using the discrete choice analysis approach to demand modeling, in this work, we provide detailed guidelines for implementing the discrete choice demand modeling approach in product design. The modeling of a hierarchy of product attributes is introduced to cascade customer desires to specific key customer attributes that can be represented using engineering language. To improve the predictive capability of demand models, we propose to use the Kano method for providing the econometric justification when selecting the shape of the customer utility function. A real (passenger) vehicle engine case study, developed in collaboration with the market research firm J.D. Power & Associates and Ford Motor Company, demonstrates the proposed approaches. The example focuses on demand analysis and does not reach beyond the key customer attribute level. The obtained demand model is shown to be satisfactory through cross validation.

Sign in / Sign up

Export Citation Format

Share Document