Barriers to competitive fringe expansion as a seed of market power

Anzhelika Gerasymenko

doi:10.2298/eka1295103g

Barriers to competitive fringe expansion as a seed of market power

Economic Annals ◽

10.2298/eka1295103g ◽

2012 ◽

Vol 57 (195) ◽

pp. 103-114

Author(s):

Anzhelika Gerasymenko

Keyword(s):

Market Power ◽

Empirical Analysis ◽

Behavioral Approach ◽

Entry Barriers ◽

Barriers To Entry ◽

Economic Rent ◽

Dominant Firm ◽

Economic Competition ◽

Potential Competition

Starting from the behavioral approach to economic competition, this paper enlarges the traditional view of economics on the essence of potential competition by including not only the potency of competition from new but also the potency of competition from existing firms of the competitive fringe and from distant substitutes because of their ability to be actualized upon changes in market conjuncture. The author specifies three types of barriers to potential competition: barriers to entry, barriers to switching demand, and barriers to competitive fringe expansion. This paper is devoted to the analysis of the latter, answering the question of their influence on the market power of incumbent firms. The theoretical and empirical analysis in the paper explains the important role of establishment and exploitation of barriers to competitive fringe expansion in maintaining the market power of a dominant firm and the maximization of its economic rent.

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The potential of entry barriers in the context of digitalization

Moscow University Economics Bulletin ◽

10.38050/01300105202116 ◽

2021 ◽

Vol 21 (1) ◽

pp. 128-147

Author(s):

Aleksey Zazdravnykh

Keyword(s):

Big Data ◽

Market Power ◽

Network Effects ◽

Economies Of Scale ◽

Digital Transformation ◽

Entry Barriers ◽

Barriers To Entry ◽

Significant Growth ◽

Digital Infrastructure ◽

Market Operation

The article analyzes the practical aspects of the functioning of some barriers to entry in the era of digital transformation of industry markets. It is noted that under the influence of digitalization processes, both positive changes in the mechanism of market operation are recorded, as well as a number of negative circumstances that have become a serious challenge for antitrust agencies. Control of big data, initial investment in digital infrastructure, and broad technological capabilities of digital blocking of users, against the background of powerful network effects and pronounced economies of scale, carry the potential for significant growth in the market power of individual firms. The article substantiates that such trends theoretically pose a significant threat to competition, and can form new types of entry barriers. At the same time, practical arguments are presented that indicate the ambiguity of this position.

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Game and Information Theory in Modern Managerial Economics

The Oxford Handbook of Managerial Economics ◽

10.1093/oxfordhb/9780199782956.013.0007 ◽

2013 ◽

pp. 128-154

Author(s):

Esther Gal-Or

Keyword(s):

Information Theory ◽

Incomplete Information ◽

Market Power ◽

Entry Barriers ◽

Market Failures ◽

Short Term ◽

Vertical Control ◽

Managerial Economics

This chapter describes how methodologies developed in the field of game and information theory can assist in understanding the interaction of competitors in markets, and the study of managerial economics, in general. The chapter highlights, in particular, the role of incomplete information in generating market failures, and provides examples of mechanisms that can alleviate such failures. Some examples of topics addressed are: first- and second-mover advantages, long term strategic commitments versus short term tactical choices made by competitors, erection of entry barriers to secure market power, choices of product-mix, special pricing mechanisms to enhance profitability, and issues related to vertical control and the internal organization of the firm.

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Is the "Dominant Firm" Dominant? An Empirical Analysis of AT&T's Market Power

The Journal of Law and Economics ◽

10.1086/467357 ◽

1996 ◽

Vol 39 (2) ◽

pp. 499-517 ◽

Cited By ~ 35

Author(s):

Simran K. Kahai ◽

David L. Kaserman ◽

John W. Mayo

Keyword(s):

Market Power ◽

Empirical Analysis ◽

Dominant Firm

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6. Article 102 TFEU: Introduction and Dominant Position

Jones & Sufrin's EU Competition Law ◽

10.1093/he/9780198824657.003.0006 ◽

2019 ◽

pp. 277-358

Author(s):

Alison Jones ◽

Brenda Sufrin ◽

Niamh Dunne

Keyword(s):

Market Power ◽

Case Law ◽

Substantial Part ◽

Barriers To Entry ◽

Relevant Market ◽

Dominant Position ◽

Definition Of ◽

The Relationship ◽

Article 102 Tfeu

Article 102 TFEU deals with the unilateral conduct of undertakings with substantial market power. It thus prohibits one or more undertakings which hold a dominant position in the internal market or a substantial part of it abusing that position insofar as it may affect inter-Member State trade. This chapter discusses the role of Article 102 and the controversy attending its application, and introduces the elements which must be established before the prohibition applies. The Commission’s review of Article 102 and the publication of its Guidance Paper on enforcement priorities, and the relationship between Article 102 and Article 101, are also considered. The chapter then explores in detail one of the principal limbs of the Article 102 prohibition, namely the concept of an undertaking holding a ‘dominant position’ in a relevant market. The definition of a dominant position in the case law of the Court is discussed, alongside its relation to the concept of substantial market power, including the Commission’s treatment in the Guidance Paper. The chapter then considers how dominance is established, addressing, inter aliai, the definition of the relevant market for the purposes of Article 102; the role of market share in establishing dominance; barriers to entry and other factors indicating dominance; and dominant positions in the digital economy. Article 102

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Empirical Analysis of Clinical Evaluations on Children Involved in the Child Protection System: The Role of Age and Gender

PsycEXTRA Dataset ◽

10.1037/e413792005-217 ◽

2000 ◽

Author(s):

Erika Felix ◽

Anjali T. Naik-Polan ◽

Christine Sloss ◽

Lashaunda Poindexter ◽

Karen S. Budd

Keyword(s):

Empirical Analysis ◽

Child Protection ◽

Protection System ◽

Age And Gender ◽

Clinical Evaluations ◽

And Gender

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Selecting which touchpoints to manage for customer loyalty: an empirical analysis in retail banking

MERCATI & COMPETITIVITÀ ◽

10.3280/mc1-2019oa7625 ◽

2019 ◽

pp. 39-54

Author(s):

Marco Ieva ◽

Cristina Ziliani

Keyword(s):

Empirical Analysis ◽

Customer Loyalty ◽

Online Survey ◽

Customer Experience ◽

Retail Banking ◽

Customer Experience Management ◽

Moderating Role

Customer Experience develops through a journey of touchpoints. However, little is known on the role of touchpoints in contributing to customer loyalty, which is the final aim of Customer Experience Management. This study provides an examination of the relative and moderating role of frequency and positivity of exposure to more than twenty touchpoints and their interplay in contributing to customer loyalty. An online survey on more than three thousand consumers is run with reference to retail banking. Results show that only a small number of touchpoints is significantly related to customer loyalty. Findings point companies' attention to invest their efforts in managing both the frequency and positivity of specific touchpoints.

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