Single-Firm Conduct: A Discipline in Search of Itself (Try with Google?)

2010 ◽  
Author(s):  
Roberto Pardolesi ◽  
Luca Arnaudo
Keyword(s):  
Firm Conduct

scholarly journals Why Don't Prices Rise During Periods of Peak Demand? Evidence from Scanner Data

2003 ◽  
Vol 93 (1) ◽  
pp. 15-37 ◽  
Author(s):  
Judith A Chevalier ◽  
Anil K Kashyap ◽  
Peter E Rossi
Keyword(s):  
Aggregate Demand ◽  
Scanner Data ◽  
Peak Demand ◽  
Seasonal Demand ◽  
Demand Elasticities ◽  
Competition Models ◽  
Limited Role ◽  
Loss Leader ◽  
Firm Conduct

We examine retail and wholesale prices for a large supermarket chain over seven and one-half years. We find that prices fall on average during seasonal demand peaks for a product, largely due to changes in retail margins. Retail margins for specific goods fall during peak demand periods for that good, even if these periods do not coincide with aggregate demand peaks for the retailer. This is consistent with “loss-leader” models of retailer competition. Models stressing cyclical demand elasticities or cyclical firm conduct are less consistent with our findings. Manufacturer behavior plays a limited role in the countercyclicality of prices.

EXPRESS: Learning to Set Prices

2021 ◽  
pp. 002224372110685
Author(s):  
Yufeng Huang ◽  
Paul B. Ellickson ◽  
Mitchell J. Lovett
Keyword(s):  
Learning Process ◽  
Firm Behavior ◽  
Profit Maximization ◽  
Washington State ◽  
Previous Experience ◽  
Firm Capabilities ◽  
Rational Models ◽  
Heterogeneous Firm ◽  
Firm Conduct ◽  
Firm Learning

The authors empirically examine how firms learn to set prices in a new market. The 2012 privatization of off-premise liquor sales in Washington State created a unique opportunity to observe retailers learn to set prices from the point at which their learning process began. Tracking this market as it evolved through time, the authors find that firms indeed learn to set more profitable prices, that these prices increasingly reflect demand fundamentals, and they ultimately converge to levels consistent with (static) profit maximization. The paper further demonstrates that initial pricing mistakes are largest for products whose demand conditions differ the most from those of previously privatized markets, that retailers with previous experience in the category are initially better-informed, and that learning is faster for products with more precise sales information. These findings indicate that firm behavior converges to rational models of firm conduct, but also reveal that such convergence takes time to unfold and play out differently for different firms. These patterns suggest important roles for both firm learning and heterogeneous firm capabilities.

The inter-relationships between regulation and competition enforcement in the South African liquid fuels industry

2015 ◽  
Vol 26 (1) ◽  
pp. 11-19 ◽  
Author(s):  
Reena Das Nair ◽  
Pamela Mondliwa ◽  
Simon Roberts
Keyword(s):  
South African ◽  
Information Exchange ◽  
Construction Projects ◽  
Road Construction ◽  
Liquid Fuels ◽  
Fuel Gas ◽  
Time And Energy ◽  
Competitive Rivalry ◽  
Firm Conduct ◽  
Competition Enforcement

The competition authorities have devoted considerable time and energy to investigating anticompetitive conduct in the broad area of liquid fuel, gas and related products, where regulation sets rules for firm conduct. Competition cases have included the Sasol-Engen merger, collusive arrangements in gas distribution and the pricing of bitumen for road construction projects, and alleged coordination through information exchange in diesel. Drawing on a review of these matters we assess the inter-relationships between regulation and competition enforcement. We argue that regulation can be designed to enable greater competitive rivalry, while anti-competitive conduct can also be better remedied through recognition of the role of regulation.

Rewarding the good and penalizing the bad? Consumers’ reaction to food retailers’ conduct

2018 ◽  
Vol 120 (11) ◽  
pp. 2539-2553 ◽  
Author(s):  
Ha Thi Mai Vo ◽  
Monika Hartmann ◽  
Nina Langen
Keyword(s):  
Online Survey ◽  
Firm Behavior ◽  
Ethical Issues ◽  
Shopping Behavior ◽  
Negativity Bias ◽  
Content Type ◽  
Multivariate Tests ◽  
Responsible Conduct ◽  
Food Retailers ◽  
Firm Conduct

Purpose The purpose of this paper is to obtain insights into Vietnamese consumers’ knowledge and relevance of as well as their reaction to modern food retailers (MFRs) responsible and irresponsible conduct. Design/methodology/approach Data were obtained from an online survey applying content analysis, uni- and multivariate tests and multivariate regression models. Findings In total, 60 percent of respondents are not aware of (ir)responsible conduct of MFR. Most of those aware of such behavior indicate that this has induced a change in their shopping behavior. This holds to a similar extent for those not aware but envisaging the (ir)responsible conduct of MFRs. The findings point to a negativity bias in that consumers’ reaction is more sensitive regarding irresponsible than responsible firm behavior. This bias is higher for consumers already knowledgeable about the (ir)responsible behavior of MFRs. The likelihood that consumers punish irresponsible conduct is influenced by the importance they attach to “food quality and safety” while those having high concerns for environmental, social and ethical’ issues are more likely to reward responsible firm actions. Research limitations/implications The negativity bias which implies that consumers react more sensitive regarding irresponsible than responsible firm behavior is likely underestimated in hypothetical studies. Practical implications Customer loyalty is at stake for MFRs behaving irresponsible while it can be strengthened by responsible firm conduct. Originality/value This research is the first to highlight the importance consumers in Vietnam attach to responsible firm conduct. It also points to a lack of awareness of such behavior.

8. The economics of agreements, collusion, and parallel conduct

2019 ◽  
pp. 180-191
Author(s):  
Sandra Marco Colino
Keyword(s):  
Market Power ◽  
Welfare Effects ◽  
Vertical Restraints ◽  
Oligopoly Markets ◽  
Firm Conduct

A group of firms can act together and damage the market and produce unwelcome welfare effects. This is known as a ‘cartel’ or ‘cartelization’. However, multi-firm conduct is often a more difficult phenomenon to analyse and identify than single firm or monopoly behaviour. This chapter discusses horizontal restraints, vertical agreements, and vertical restraints. Horizontal agreements may raise concerns that competition is being harmed, but collusion may be difficult to detect. The problems of policing horizontal conduct may be exacerbated in oligopoly markets, where there are few competitors which frequently mimic each other’s conduct without necessarily coordinating. Cartel arrangements may be difficult to put in place, but may have long-term success. Vertical agreements are less likely to raise competitive concern, unless they are linked to the exercise of market power, or contribute to the exclusion of competitors from a market.

scholarly journals Analysis of Industrial Structure, Firm Conduct and Performance – A Case Study of the Textile Industry

2016 ◽  
Vol 16 (2) ◽  
pp. 35-42 ◽  
Author(s):  
Yueh-Chiang Lee ◽  
Yao-Hung Yang
Keyword(s):  
Market Structure ◽  
Textile Industry ◽  
Industrial Structure ◽  
Random Effect ◽  
Capital Intensity ◽  
Ordinary Least Squares ◽  
Performance Model ◽  
Entry Barrier ◽  
And Performance ◽  
Firm Conduct

AbstractWith the analysis of the industrial economic theory structure – conduct – performance model, the study investigates the existence of significant relationship among market structure, conduct and performance. Twelve Taiwan companies are studied during the study period from 2006 to 2012 which are analysed with fixed effect and random effect of panel data and ordinary least squares estimation. The empirical result backs the statement by “Structuralism” that market structure (market share, entry barrier and capital intensity) directly affects firm conduct (R&D intensity) and performance (ROA).

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