Search results for "Factor market"

EXPLANATORY FACTORS OF MARKET POWER IN THE BANKING SYSTEM

2007

The aim of the study is to analyse the explanatory factors of market power in the banking system. Using as laboratory the Spanish banking system in the period 1986–2002, results show an increase of market power from the mid-1990s. Of the set of variables that the model posits as explaining market power, those with the greatest explanatory power are size, efficiency and specialization; concentration is not significant. This last result shows the limitations of the approaches, studies and decision-making rules of economic policy that uses market concentration as a proxy for the degree of competition.

The Challenges Underlying Firm Revival and Resilience in the Post-COVID-19 Phase

2022

Covid-19 is an exogenous shock that has deeply modified the basic building blocks and the micro-mechanisms on which socio-economic systems and organizations rest. The vast majority of both factor markets and final markets have been significantly disrupted on a worldwide scale. As all factors that determine severe crises, the Covid-19 pandemic is a low probability and high impact shock which has significantly changed the environment in which firms operate (Grewal and Tansuhaj 2001, Hudecheck et al. 2020). Such changes have nonetheless been asymmetric, whilst they have menaced the survival of a huge number of firms and have brought to their knees many key industries, it has also ignited rapid…

The concept of skill and the Spanish labour market

2004

The social costs of bank market power: Evidence from Mexico

2008

This paper estimates the social costs of market power (Harberger's triangle) in the Mexican banking system over the period 1993–2005. It also tests the so-called “quiet life” hypothesis which postulates a negative effect of market power on bank management efficiency. The social cost attributable to market power in 2005 is 0.15% of GDP, while that deriving from the cost (profit) inefficiency of banking management is 0.021% (0.075%) of GDP. The results allow us to reject the quiet life hypothesis in the deposits market. However, market power in the setting of the interest rate on loans has a negative effect on cost efficiency. Journal of Comparative Economics 36 (3) (2008) 467–488.

The evolution of market power in European banking

2017

This paper analyses the effect that European financial market integration has had on the evolution of the banks' market power disparities. The results show that market power disparity has narrowed among eurozone banks. The reduction is attributable to the convergence in the average levels of market power of the European banking sectors. In contrast, the disparities observed within each country have remained stable. As a result, the measures adopted to advance towards a single banking market should be complemented by measures at the national level designed to intensify competition among the banks within a given country.

Like it or not? How the economic and institutional environment shapes individual attitudes towards multinational enterprises

2018

The integration of goods and factor markets has affected the lives of individuals all over the world. While some agents have reaped enormous benefits from this process, others have lost in terms of income and welfare. It is usually argued that individuals are aware of the distributional effects of globalization, and that this knowledge shapes their preferences over various policy issues such as protection, financial market regulation etc. In this chapter, we use a large surveybased data set to explore whether this conjecture is correct when it comes to individuals’ attitudes towards multinational enterprises (MNEs).

Value based trading of real assets in shipping under stochastic freight rates

2009

The article uses a real options valuation model with stochastic freight rates to investigate market efficiency and the economics of switching between the dry bulk and the tanker markets in international shipping. A dry bulk carrier is replaced with a tanker when the expected net present value of such a switch is optimal from a real options based decision rule. Depending on the development of the markets a reversal may take place later. The cost and demand parameters upon which the decisions to switch are made, including the stochastic characteristics of freight rates, are estimated from an empirical analysis that is updated every week throughout a 12-year time period from 1993 to 2005. The …

Pricing to market behaviour in European car markets

2003

Abstract This paper investigates PTM behaviour in European car markets for a period of great interest (1993–98), taking into account the role of invoicing currency. The results indicate that local currency price stability is a strong and pervasive phenomenon across products independently of the invoicing currency. The paper offers robustness checks, tests and arguments that justify the interpretation of this finding, at least in part, as evidence of PTM. It implies the existence of market segmentation and price discrimination, despite the completion of the single market programme on 1 January 1993.

High performance in after-sales support services in the automotive industry

2009

In the automotive aftermarket industry, market development has become more than merely the offer of a core product portfolio. With the aim of genuine differentiation and increased customer loyalty, the so-called value-added services have been brought into the market as separate/independent services or as product-supporting services by the automotive industry. However, owing to the increasing price erosion and budget pressure in practice, it has become essential for companies to ensure the effectiveness and efficiency of the services offered. The groundwork of effective and efficient service is a market- and customer-oriented service portfolio. This in turn requires a service-controlling sys…

PRODUCTION FLEXIBILITY AND ADAPTING TO MARKET CHANGES

2007

Abstract This paper describes those situations when a company, an organization, in its search for minimum costs, including those involved by investment, and production flexibility, manages to adapt to those changes that ensure survival on the market. Economies of scale are an attraction for any firm and thus globalized, huge firms emerge, conquering continuously developing markets. However, smaller firms face market changes that are usually dangerous in terms of sustainability. The paper highlights those market components that provide information on adapting production through flexibility.