Market Power and Digital Business Ecosystems: Assessing the Impact of Economic and Business Complexity on Competition Analysis and Remedies

2021 ◽  
Author(s):  
Diana L. Moss ◽  
Greg Gundlach ◽  
Riley T. Krotz
Keyword(s):  
Market Power ◽  
Competition Analysis ◽  
Business Ecosystems ◽  
The Impact ◽  
Business Complexity

EXPRESS: Investigating the Effects of Excise Taxes, Public Usage Restrictions, and Anti-Smoking Ads across Cigarette Brands

2021 ◽  
pp. 002224292199456
Author(s):  
Yanwen Wang ◽  
Michael Lewis ◽  
Vishal Singh
Keyword(s):  
Market Power ◽  
Market Share ◽  
Brand Choice ◽  
Continuous Model ◽  
Marketing Strategies ◽  
Brand Strength ◽  
Excise Taxes ◽  
Cigarette Tax ◽  
Pass Through ◽  
The Impact

The prevalence of strong brands such as Coca-Cola, McDonald’s, Budweiser, and Marlboro in “vice” categories has important implications for regulators and consumers. While researchers in multiple disciplines have studied the effectiveness of anti-tobacco counter-marketing strategies, little attention has been given to how brand strength may moderate the efficacy of tactics such as excise taxes, usage restrictions, and educational advertising campaigns. In this research, we use a multiple discrete-continuous model to study the impact of anti-smoking techniques on smokers’ choices of brands and quantities. Our results suggest that while cigarette excise taxes decrease smoking rates, these taxes also result in a shift in market share towards stronger brands. Market leaders may be less affected by tax policies because their market power allows strong brands such as Marlboro to absorb rather than pass through increased taxes. In contrast, smoke-free restrictions cause a shift away from stronger brands. In terms of anti-smoking advertising we find minimal effects on brand choice and consumption. The findings highlight the importance of considering brand asymmetries when designing a policy portfolio cigarette tax hikes, smoke-free restrictions, and anti-smoking advertising campaigns.

Banking market structure and efficiency: an assessment of the USA and Canada

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Salah U-Din ◽  
David Tripe
Keyword(s):  
Market Structure ◽  
Market Power ◽  
Negative Impact ◽  
Positive Impact ◽  
Bank Efficiency ◽  
Content Type ◽  
Frontier Analysis ◽  
Banking Market ◽  
Cost Efficient ◽  
The Impact

PurposeThe study aims to analyze the changes in banking market structure and their impact on the bank efficiency.Design/methodology/approachThis study uses a one-stage stochastic frontier analysis (SFA) to compare the impact of the market structure and the GFC on the economic efficiency of the major banks in both countries.FindingsA significant negative impact of the GFC is observed on bank efficiency. Overall, Canadian banks posted better efficiency scores than their American counterparts. Additionally, cost-efficient banks are found to be more resilient to crises and more profit-efficient in the post-GFC period. The authors found that market power had a positive impact on the cost and profit efficiency of banks. Higher levels of equity, market power and concentration helped banks be more cost-efficient.Research limitations/implicationsOnly large banks are selected for study although it represents the majority stake of both banking sectors.Practical implicationsBanking regulators should include more measures to assess the banking market structure and performance.Originality/valueAs per the best knowledge of the authors, it is the first study to assess the change in banking market structure and efficiency of the US and Canadian banking sectors in the post-GFC period.

The Impact of Market Power at Bank Level in Risk-Taking: The Brazilian Case

2012 ◽  
Author(s):  
Benjamin M. Tabak ◽  
Guilherme Maia Rodrigues Gomes ◽  
Maur cio da Silva Medeiros
Keyword(s):  
Market Power ◽  
Risk Taking ◽  
The Impact ◽  
Brazilian Case

scholarly journals Competition, performance and financial stability in US agricultural banking

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Madhav Regmi ◽  
Allen M. Featherstone
Keyword(s):  
Market Power ◽  
Financial Stability ◽  
Relationship Lending ◽  
Net Income ◽  
Bank Competition ◽  
Content Type ◽  
Linear Effect ◽  
And Performance ◽  
The Impact ◽  
Agricultural Banking

PurposeThe number of US commercial banks has declined by about 50% over the last two decades. This change could lead to a potential decline in competition and a potential increase in market power in the agricultural banking market. The focus of this study is to examine whether the risk of failure and the performance of agricultural banks has been affected by bank consolidations.Design/methodology/approachThe impact of bank competition on performance and financial stability of agricultural banks is studied using a Lerner index as a measure of market power. A Z-score is constructed to measure bank stability. Similarly, the return on assets (net income to total assets ratio), return on equity (net income to the total equity ratio), agricultural loan ratio and agricultural loan volume are used as performance measures for agricultural banks. Two-way fixed effect regression models are estimated to measure the impact of competition on financial stability and performance.FindingsResults indicate that bank competition has a U-shaped effect on the probability of default and an inverted U-shaped effect on volume and proportion of agricultural lending. There also exists evidence of a positive but non-linear effect of bank market power on the profitability of agricultural banks.Originality/valueThere is limited literature on the impact of bank competition on financial stability and performance of US agricultural banks. Agricultural banks hold more than 40% of US farm debt. A decrease in the number of banks or the level of competition in agricultural banking may cause an adverse effect on relationship lending. The key findings imply that bank regulatory strategies should focus on enhancing (reducing) competition in more (less) concentrated banking markets to improve the financial health and performance of agricultural banks.

Information Technology Security as Scored by Management Budget

2018 ◽  
pp. 258-280
Author(s):  
Tiina K. O. Rodrigue
Keyword(s):  
Information Technology ◽  
Organizational Management ◽  
It Security ◽  
Leadership Theories ◽  
Complexity Leadership ◽  
Organizational Power ◽  
Information Technology Security ◽  
Unfunded Mandate ◽  
The Impact ◽  
Business Complexity

In information technology security as scored by management budget, the author examines information technology (IT) security in the context of organizational management, business, complexity leadership theories, and current IT security scholarship. Based on well-known organizational power and politics theory as well as accounting, budget, and management literature, the chapter examines what is known about the impact of power and politics on IT security and the importance of budgetary gamesmanship as illustrated by understanding that the budget as a game, the politics of allocation within an organization, the influence of budgetary bias and how it shapes what CISOs must understand and master, the unfunded mandate impediment through which each the organization picks winners and losers under the auspices of “doing more with less.” The author suggests a future framework for IT security-management-budget review that includes measures that track expenditure versus the power alignment and how to gauge the net effect on an organization's information-technology security posture.

10. Mergers and acquisitions

2021 ◽  
pp. 106-117
Author(s):  
Ariel Ezrachi
Keyword(s):  
Mergers And Acquisitions ◽  
Market Structure ◽  
Market Power ◽  
Joint Ventures ◽  
Potential Benefit ◽  
Horizontal Mergers ◽  
Administrative System ◽  
The Us ◽  
Vertical Mergers ◽  
The Impact

‘Mergers and acquisitions’ discusses mergers and acquisitions. While of potential benefit to society, mergers, takeovers, share acquisitions, and joint ventures also affect the market structure, and at times may reduce competition. When markets become more concentrated following a merger, we move further away from a competitive market structure to a structure in which market power might undermine the competitive process. To address this risk, the competition agency must assess the impact of the transaction. There are important procedural differences between the European administrative system and the US system in terms of the appraisal of mergers and acquisitions. Other types of mergers include: horizontal mergers, vertical mergers, and conglomerate transactions.

Technological Innovations and Market Power: A Study of Indian Pharmaceutical Industry

2020 ◽  
pp. 097639962094427
Author(s):  
Madan Dhanora ◽  
Ruchi Sharma ◽  
Walter G. Park
Keyword(s):  
Pharmaceutical Industry ◽  
Market Power ◽  
Process Innovation ◽  
Technological Innovations ◽  
Firm Level ◽  
Innovation Activities ◽  
Product And Process Innovation ◽  
Product And Process ◽  
The Impact ◽  
Indian Pharmaceutical Industry

Technological innovations are positively associated with firms’ market performance. This study aims to examine the impact of product and process innovation on the market power of 168 Indian pharmaceutical firms during 2000–2013. We generate product and process patent stock to capture firm-level innovation activities. Findings of this study suggest that both product and process innovation positively influence firms’ market power. Results also reveal that MNEs enjoy more market power in the Indian pharmaceutical industry. Further, this study also highlights that there is a differential impact of firms’ product group on market power. This study concludes that patenting is a positive source of firm performance in the Indian pharmaceutical industry.

scholarly journals The changes of the agribusiness impact on the competitive environment of agricultural enterprises

2012 ◽  
Vol 48 (No. 10) ◽  
pp. 449-455 ◽  
Author(s):  
V. Bečvářová
Keyword(s):  
Market Power ◽  
Food Chain ◽  
Research Output ◽  
Developed Countries ◽  
Food Distribution ◽  
Agricultural Enterprises ◽  
Positive Effects ◽  
Regulatory Policies ◽  
Long Time ◽  
The Impact

The market extension generally affects growth performance positively by allowing an expansion of markets, by increasing outside competition as well as by more rapid diffusion of new products, processes and research output between national economies. The positive effects of considerable market on productivity are indubitable. However, two other weighty phenomena of the process are necessary to investigate, effects of regulatory policy and market power exhibits. Agriculture as a sector belongs to those, where the support policies exist for a long time. Nevertheless, the last decades have witnessed considerable changes in this sector among most of developed countries and their agricultural/regulatory policies. It has been perceived, that the agriculture for 21st century cannot be separated from the other components of agri-food sector. The economic importance of the processing and finalization stages (i.e. food industry and food distribution) has increased over time. There are concerned inter-relationships between the market structures development and the crucial factors of the interconnected markets developments in the framework of production verticals of agricultural commodities. Reflecting the steadily more sophisticated supply side behaviour, solution is based upon the demand oriented approach explaining changes of the position of agriculture within the agri-food chain. Conflict of interest between the regulatory/agricultural policy and the market power of input supply and output processing firms and retail notably has increased dramatically. Economic manifestation of the increasing market power on the demand side as well as the impact of market interrelationships and change of policy regulation efficiency within commodity chains are characterised there.  The position of agriculture within the agri-food chain has changed and the influence of farmers has decreased. Success of agricultural enterprises in achieving their operational goals is still more influenced by improvements in productivity and by competitiveness of other “links” of the agri-food chain.

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