An Analysis of Global HFT Regulation: Motivations, Market Failures, and Alternative Outcomes

2014 ◽  
Author(s):  
Holly Bell ◽  
Harrison Searles
Keyword(s):  
Market Failures

Discontinuous Institutional Alternatives in the Context of Economy Deregulation

2004 ◽  
pp. 94-110 ◽  
Author(s):  
A. Shastitko
Keyword(s):  
Market Failure ◽  
Transaction Management ◽  
Market Failures ◽  
Relative Cost ◽  
State Participation

Various ways of state participation in the mechanisms of transaction management are considered in the article. Differences between compensation and elimination of the market failures are identified. Opportunities and risks of non-regulatory alternatives usage as a mean of market failure compensation are described. Based on classification of goods correlated to relative cost of their useful characteristics evaluation (search, experience, merit) questions of institutional alternatives in three areas (political, financial and commodity) are examined.

Analysis of relations in the state sector of Russian public procurement

2018 ◽  
pp. 106-126
Author(s):  
O. V. Anchishkina
Keyword(s):  
Current Practice ◽  
Public Procurement ◽  
The State ◽  
Market Failures ◽  
Administrative System ◽  
State Sector ◽  
Contractual Relations ◽  
State Organizations ◽  
State Organization ◽  
Negative Factors

The paper deals with a special sector of public procurement — G2G, in which state organizations act as both customers and suppliers. The analysis shows the convergence between contractual and administrative relations and risks of transferring the negative factors, responsible for market failures, into the administrative system, as well as the changing nature of the state organization. Budget losses in the sector G2G are revealed and estimated. There are doubts, whether the current practice of substitution of market-based instruments for administrative requirements is able to maintain integrity of public procurement in the situation of growing strategic challenges. Measures are proposed for the adjustment and privatization of contractual relations.

A Theory of Patronized Goods: Inefficient and Efficient Equilibria

2011 ◽  
pp. 65-87 ◽  
Author(s):  
A. Rubinstein
Keyword(s):  
Nash Equilibrium ◽  
Social Policy ◽  
Nash Equilibria ◽  
Institutional Environment ◽  
Social Motivation ◽  
Pareto Optimal ◽  
Market Failures ◽  
Equilibrium Conditions ◽  
Policy Issues

The article considers some aspects of the patronized goods theory with respect to efficient and inefficient equilibria. The author analyzes specific features of patronized goods as well as their connection with market failures, and conjectures that they are related to the emergence of Pareto-inefficient Nash equilibria. The key problem is the analysis of the opportunities for transforming inefficient Nash equilibrium into Pareto-optimal Nash equilibrium for patronized goods by modifying the institutional environment. The paper analyzes social motivation for institutional modernization and equilibrium conditions in the generalized Wicksell-Lindahl model for patronized goods. The author also considers some applications of patronized goods theory to social policy issues.

The European Guilds

2019 ◽  
Author(s):  
Sheilagh Ogilvie
Keyword(s):  
Middle Ages ◽  
Common Good ◽  
Industrial Revolution ◽  
Dark Side ◽  
Market Failures ◽  
Women Migrants ◽  
Work Skills ◽  
The Common ◽  
Economic Reasoning ◽  
European Economies

Guilds ruled many crafts and trades from the Middle Ages to the Industrial Revolution, and have always attracted debate and controversy. They were sometimes viewed as efficient institutions that guaranteed quality and skills. But they also excluded competitors, manipulated markets, and blocked innovations. Did the benefits of guilds outweigh their costs? Analyzing thousands of guilds that dominated European economies from 1000 to 1880, this book uses vivid examples and clear economic reasoning to answer that question. The book features the voices of honourable guild masters, underpaid journeymen, exploited apprentices, shady officials, and outraged customers, and follows the stories of the “vile encroachers”—women, migrants, Jews, gypsies, bastards, and many others—desperate to work but hunted down by the guilds as illicit competitors. It investigates the benefits of guilds but also shines a light on their dark side. Guilds sometimes provided important services, but they also manipulated markets to profit their members. They regulated quality but prevented poor consumers from buying goods cheaply. They fostered work skills but denied apprenticeships to outsiders. They transmitted useful techniques but blocked innovations that posed a threat. Guilds existed widely not because they corrected market failures or served the common good, but because they benefited two powerful groups—guild members and political elites. The book shows how privileged institutions and exclusive networks shape the wider economy—for good or ill.

Проблемы оценки качества при проектировании транспортных услуг

2020 ◽  
pp. 30-40
Author(s):  
S.U. Lyapina ◽  
◽  
V.N. Tarasova ◽  
V.B. Ruchkin ◽  
E.O. Koscheeva ◽  
...  
Keyword(s):  
Life Cycle ◽  
Business Processes ◽  
Service Industries ◽  
Service Organizations ◽  
Quality Of Services ◽  
Market Failures ◽  
Expert Opinions ◽  
Service Life Cycle ◽  
Quantitative Indicators

The quality issues of new services directly affect the competitiveness of service organizations. However, the introduction of new services to the market is often limited only to the construction of the logistics of business processes, and the design applies only to technological equipment and infrastructure, the quality of which ultimately does not always ensure the quality of the services provided. At the same time, quality management affects mainly operational aspects, that is, it covers the later stages of the service life cycle. In resource-intensive service industries (for example, transport, communications, etc.), the high cost of equipment and infrastructure reduces the possibility of changes in service delivery technologies to improve their quality, which leads to inefficiency and market failures due to the fact that the new service does not match the real needs of customers. Despite this, forecasting and planning the quality of a service at the stage «making a decision» to launch a new service on the market remains largely without sufficient attention. The authors prove the need to design the quality of services at the stage «making a decision» to bring new services to the market. The purpose of the article is to describe the approach developed by the authors to assessing the quality of projected services at the early stages of their life cycle, which makes it possible to integrate qualitative and quantitative indicators of the future service and take into account the forecast requests of customers. The proposed approach has two features: (1) forecasting customer requirements for the quality of services is based on the results of machine learning based on data on existing and potential customers, as well as on the basis of the accumulated knowledge base of customer experience and expert opinions; (2) multi-criteria optimization is used, while some of the optimized parameters are discrete and high-quality. In conclusion, the authors demonstrated the advantages of the developed model on the examples of transport and logistics business in the field of passenger and freight transportation in Russia.

Reform of the system of development institutions of the Far East: directions and tasks

2020 ◽  
Vol 93 (4) ◽  
pp. 101-108
Author(s):  
I. S. Khvan ◽  
Keyword(s):  
Regional Development ◽  
Russian Federation ◽  
Far East ◽  
Developed Countries ◽  
The State ◽  
Market Failures ◽  
The Far East ◽  
Development Institutions ◽  
State Corporation ◽  
The Russian Federation

Development institutions are an important modern instrument of government regulation of the economy in all developed countries. The system of development institutions of the Russian Federation includes the federal and regional development institutions. Key federal development institutions include such well-known state corporations as the investment fund of the Russian Federation; the State Corporation "Bank for Development and Foreign Economic Activity (Vnesheconombank)"; the state corporation "Russian Corporation of Nanotechnologies," etc. According to experts of the Ministry of Economic Development of the Russian Federation, about 200 regional development institutions operate on the territory of the constituent entities of the Russian Federation. The objectives of this extensive system of development institutions so far have been to overcome the so-called "market failures," which cannot be optimally realized by the market mechanisms, and to promote the sustained economic growth of a country or an individual region. In November 2020, the Government of the Russian Federation announced the reform of the system of development institutions in the country. The article analyzes the goals and main directions of the announced reform. On the example of the system of development institutions of the Far East, an attempt was made to assess its possible consequences.

Changing Challenges in the Modernization of Nacional Financiera

2018 ◽  
Author(s):  
Juan Carlos Moreno-Brid ◽  
Esteban Pérez Caldentey ◽  
Laura Valdez
Keyword(s):  
Federal Government ◽  
Commercial Bank ◽  
Development Process ◽  
Institutional Transformation ◽  
Market Failures ◽  
Market Segments ◽  
Business Interests ◽  
Policy Bank ◽  
Preferential Access

NAFINSA was essential to Mexico’s development process. It served as the financial agent of the Federal Government and provided preferential access to long-term finance favouring selected business interests and groups. With the Washington Consensus, its tasks were reduced to correcting for market failures, becoming a complement to commercial banks, and focusing on attending the market segments falling outside the scope of commercial bank activity (notably SMEs). Although it appears as a successful story of institutional transformation, on closer inspection, NAFINSA has not been able to overcome key obstacles and its success in alleviating credit restrictions is very limited. NAFINSA must recover some of its functions, prerogatives, and responsibilities as a policy bank to become relevant in strengthening financial intermediation for capital formation.

Regulation

2018 ◽  
Author(s):  
Robert Sugden
Keyword(s):  
Public Goods ◽  
Maximum Yield ◽  
Monopoly Power ◽  
Choice Overload ◽  
Market Failures ◽  
Governmental Regulation

Chapter 7 considers a range of conditions that are usually considered as ‘market failures’ to be corrected by governmental regulation. I discuss these conditions, and possible responses to them, from a contractarian viewpoint. I argue that neoclassical arguments for regulations against cartels and against the exploitation of monopoly power can be endorsed on contractarian grounds, as can certain kinds of regulations against spurious complexity in pricing. I raise doubts about the significance of behavioural arguments for regulation that assume choice overload or preferences for self-constraint. I develop a concept of consumers’ surplus that does not depend on assumptions about preferences, and is defined in terms of the maximum yield of discriminatory pricing. I discuss two opportunity-enhancing mechanisms for the supply of public goods.

Towards a More Competitive Mobile Payment Industry: Standardization And Beyond

2020 ◽  
Author(s):  
Xingyu Yan
Keyword(s):  
Financial Market ◽  
Competitive Dynamics ◽  
Mobile Payment ◽  
Market Failures ◽  
Mobile Payments ◽  
The World ◽  
Chinese Industry ◽  
Definable Groups ◽  
Study Case ◽  
Bank Card

Abstract Mobile payments are becoming increasingly popular around the world. In countries like China, they appear in the form of barcode payments and are poised to replace cash and bank card payments for day-to-day consumer purchases. Against that backdrop, this paper analyzes the availability of barcode standardization as an approach to interoperability and ultimately to enhanced competition in the mobile payment industry. It uses the Chinese industry as a study case, which features a duopoly structure and shifting competitive dynamics among three definable groups of market players. This paper confirms that standardization can enhance competition and argues that, in this case, a government-mandated standardization is preferable to a voluntary one because the latter is prone to financial market failures. Along this line, this paper makes three suggestions for furthering the barcode standardization. It also advises prudence and competitive neutrality for the financial regulator and calls for more active involvements of the competition and data protection authorities.

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