Search results for "Market structure"
showing 10 items of 44 documents
Les followers ont-ils vraiment de l'importance dans le modèle de Stackelberg?
2011
In this paper, we consider a T-stage linear model of Stackelberg oligopoly. First, we show geometrically and analytically that under the two conditions of linear market demand and identical constant marginal costs, the T-stage Stackelberg model reduces to a model where T oligopolies exploit residual demand sequentially. At any stage, leaders behave as if followers did not matter. Second, we study social welfare and convergence toward competitive equilibrium. Especially, we consider the velocity of convergence as the number of firms increases. The convergence is faster when reallocating firms from the most to the less populated cohort until equalizing the size of all cohorts.
High-Frequency Data
2010
We introduce some of the most common types of high-frequency financial data: tick-by-tick data, trade and quote data, order book data, and market member data. We describe the types of variables that are usually available in the most popular high-frequency financial databases. We discuss the issues related to the handling of these data, including cleaning protocols, timing issues, and issues related to data size. We then briefly consider the issues related to the stylized facts detected in the empirical analysis of high-frequency data. Specifically, we consider (i) the irregular temporal spacing of the events at high frequency and its relevance for the econometric modeling of financial varia…
Data Reporting: Market Structures and Regulatory Framework
2020
The European legislature has identified weaknesses in the functioning and transparency of financial markets as major shortcomings of the regulatory framework under MiFID I. The new MiFID II/MiFIR regime essentially addresses these identified deficits by means of three regulatory measures: First, it considerably extends the scope and increases the stringency of the obligations with regard to pre- and post-trade transparency with a view to improving the quality of pre- and post-trade transparency data. Second, it instigates a shift towards increased trading on regulated trading venues or on other regulated platforms (more extensive market regulation and trading obligations) and, third, it ext…
The Role of Intraindustry Trade in Interregional Trade in the Midwest of the US
2007
The subject of international trade among countries has long been of concern to policy makers and academics alike. As economic activity has become more and more international in scope, the potential impact of international trade on regional economic growth and income distribution has become central to many studies. Within economics, the study of industrial organization, particularly with respect to imperfect competition and economies of scale and agglomeration, has influenced developments in international trade theory in the past few decades. In identifying the determinants of trade among countries, issues such as market size, relative level of Gross National Product (GNP) per capita, market…
The Export-Productivity Link in Brazilian Manufacturing Firms
2015
This paper explores the link between exports and total factor productivity in Brazilian manufacturing firms over the period 2000–08. The Brazilian experience is instructive, as it is a case of an economy that expanded aggregate exports significantly, but with stagnant aggregate growth in total factor productivity. The paper first estimates firm-level total factor productivity under alternative assumptions (exogenous and endogenous law of motion for productivity) following a GMM procedure. In turn, the analysis uses stochastic dominance techniques to assess whether the ex ante most productive firms are those that start exporting (self-selection hypothesis). Finally, the paper tests whether e…
Disregarding Wind Power: Introduction to Finnish Feed-in Tariff Policy
2011
In 2001, the Third Assessment Report (TAR) presented by the Intergovernmental Panel on Climate Change (IPCC) identified some major barriers inhibiting the deployment of technology that has the potential to reduce greenhouse gas (GHG) emissions. The TAR classifies such barriers into categories including prices; financing; trade and environment; market structure; institutional frameworks; information provision; and social, cultural, and behavioral norms and aspirations (IPCC 2001, 355). Similar categorizations have been made prior to and following the TAR (see e.g., Reiche and Bechberger 2004; Painuly 2001; Roos et al. 1999). This chapter examines the institutional framework of Finnish energy…
Spatial mapping of price competition using logit-type market share models and store-level scanner-data
2009
This paper proposes a methodology to obtain reliable spatial maps of price competition using store-level scanner data. Specifically, a procedure to obtain a symmetric matrix of similarities between brands considering their substitutability depending on price variations is proposed. The matrix is derived from a market response model where price cross-effects are split into two components. The first component accounts for the fact that price variation in one brand can have different effects to price variation in other brands (ie j → j′≠j′ → j). The second component accounts for the fact that the price of each brand can have different effects across competing brands (ie j → j′≠j → j ″). The ma…
An ACE Wholesale Electricity Market Framework with Bilateral Trading
2011
In this paper, an agent-based simulation model for a hybrid power market structure is presented. A bilateral transaction mechanism is combined with a uniform-pricing auction settlement in order to isolate the impact of medium-term bilateral contracts on market power and spot prices in a competitive wholesale market setting. First we describe the negotiation method for bilateral trading of energy and then introduce a new approach for bidding in the DA market based on the load duration curve. We find that, despite the conventional concerns, the foreclosure effect produced by the bilateral agreement between a generation and a retail business will not necessarily lead to higher prices, and will…
Is the Ghosh model interesting?
2009
International audience; The overall value of the Ghosh model is appraised. Its treatment of quantities and prices is scrutinized by examining the variant with data in quantities and prices, and the variant with data in value and price indexes. The methodology involves returning to the accounting equations and shows that: (i) the Ghosh model offers solutions of limited interest, being incapable of providing prices or price indexes separately from quantities; (ii) what is taken to be the equation of Ghosh's value model is actually that of Ghosh's physical model; (iii) the Ghosh model may serve for cost-push exercises, but the dual of the Leontief model performs the same task in a much simpler…
Industrial loans and market structure
2003
Abstract Based on the observation that financing is one of the main obstacles to create new firms, this paper deals with the interactions between the market structure of both the banking sector and the borrowing industries. We consider that firms’ installation costs are financed by means of industrial loans from specialized banks. With endogenous entry in banking activity as well as in the borrowing industry, we find that a natural oligopoly emerges in both sectors if the entry cost in the industrial sector is small enough, relative to the banks’ entry cost.