Individual Refusals to Deal: When Does Single-Firm Conduct Become Vertical Restraint?

Summary This paper presents a new poroelastic solution to describe the time-dependent response of a confined geological reservoir to fluid injection through a fully penetrating vertical well treated as a point source. Unlike previous studies, vertical-confinement effects of seal rocks are incorporated in the solution. To facilitate analytical description of a fully coupled poroelastic behavior within the reservoir, the stiffness of surrounding rocks is described by the Winkler model, simplifying the response of seal rocks in the direction perpendicular to the reservoir plane. Analytical expressions are obtained for axisymmetric stress and strain components in the reservoir and for the vertical reaction stress. The latter is essential for evaluation of integrity of seal rocks during injection. Solutions are also obtained for the magnitude and location of the maximum-induced radial displacement as a function of time during injection. The effects of poroelastic coupling are articulated through the equivalent diffusion constant of the reservoir-seal rocks system. The latter is expressed through traditional poroelastic parameters as well as the relative stiffness of reservoir and seal rocks. The Winkler modulus of seal rocks, which is involved in all analytical relationships presented in this paper, is empirically linked to elastic characteristics of surrounding strata by comparing their response with the same pressure change in the reservoir according to the ideally elastic and Winkler models. The derived solutions are compared with previous studies, and verified against fully coupled numerical simulations. A comprehensive sensitivity analysis is conducted to assess the effects of the stiffness of the confining strata on the response of a uniform reservoir to injection. The vertical component of stress and the radial and vertical displacements are found to be substantially sensitive to the magnitude of the vertical restraint. The findings note the significance of incorporating seal-rock characteristics to attain a realistic assessment of the geomechanics of injection, specifically in formations with lower elastic moduli.

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The Legal Periphery of Dominant Firm Conduct

Competition Law and Economics ◽

10.4337/9781849807036.00027 ◽

2013 ◽

Author(s):

Herbert Hovenkamp

Keyword(s):

Dominant Firm ◽

Firm Conduct

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

The American Economic Review ◽

10.1257/000282803321455142 ◽

2003 ◽

Vol 93 (1) ◽

pp. 15-37 ◽

Cited By ~ 262

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.

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EXPRESS: Learning to Set Prices

Journal of Marketing Research ◽

10.1177/00222437211068527 ◽

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.

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

Journal of Energy in Southern Africa ◽

10.17159/2413-3051/2015/v26i1a2216 ◽

2015 ◽

Vol 26 (1) ◽

pp. 11-19 ◽

Cited By ~ 1

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.

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

British Food Journal ◽

10.1108/bfj-06-2017-0339 ◽

2018 ◽

Vol 120 (11) ◽

pp. 2539-2553 ◽

Cited By ~ 3

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.

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