Search results for "Perfect competition"
showing 10 items of 22 documents
Trade is not necessary for agglomeration to arise
2003
We develop a spatial general equilibrium model in which the absence of trade is an endogenous outcome and we show that trade is not a necessarycondition for agglomeration to arise. More precisely, extending the modeldeveloped by Ottaviano et al. [13], we show that equilibria without tradediffer significantly from those obtained in the presence of trade. Somewhatsurprisingly, equilibrium structures without trade are richer than those withtrade, since partial agglomeration becomes a feasible outcome. Equilibrianow depend on the ratio of mobile to immobile factors and an increase in thatratio triggers a process of spatial agglomeration.
Client orientation in fashion e-commerce: a comparative study
2020
[EN] E-business and especially e-commerce represents one of the most important ways of doing business in the current context. That is why, researchers are doing a great effort in studying how Business to Consumer platforms manage the relationship with their clients. Regarding the most important channels of connection between consumers and companies in online market, the websites and Apps, this study analyzes the way in which e-businesses present the information to their clients from a client-focused strategy point of view. The present study evaluates how two important e-commerce companies deal with this in such a competitive market as fashion and aims to state some success guidelines for fa…
Marketisation of Universities and Legal Education in Poland: The Balance 25 Years After the Transformation
2016
This paper is dedicated to the issue of the marketisation of universities and legal education 25 years after the systemic transformation of 1989 where, in public discourse, communist ideology had been replaced by a neo-liberal one. The process of marketisation is perceived as a way to deal with externalities’ where activities in areas traditionally regarded to be of a non-economic nature are being transformed to operate according to market-oriented model (with competitive market, pursuit for profit, economic efficiency, and cost reduction). The mentioned process has encroached into the sphere of higher education where there is observable departure from Humboldt’s model of university and a s…
Measuring welfare loss of market power: an application to European banks
2004
From a model of imperfect competition among banking firms, this study derives an analytical expression that allows empirical quantification of the welfare loss associated with imperfect competition. Its application to the specific case of the European banking system shows that in spite of the process of deregulation, market power increased during the 1990s in 10 out of the 15 countries of the EU. The welfare loss associated with market power represents close to 2.5% of EU GDP.
The Classical Notion of Competition Revisited
2013
This article seeks to fill a lacuna within classical economics concerning the process of market price determination in situations of market disequilibrium. To this aim, first we distinguish the classical notion of free competition from the Walrasian notion of perfect competition and we argue that the latter is beset with some theoretical difficulties alien to the former. Second, we reconstruct in some detail Smith’s and Marx’s views concerning market price determination and show that Marx’s extensive use of metaphors and numerical examples foreshadows the modern taxonomy of buyers’ market, sellers’ market, and mixed strategy equilibrium in the capacity space of a standard Bertrand duopoly m…
On the social value of publicly disclosed information and environmental regulation
2018
Abstract This paper presents an analysis of environmental policy in imperfectly competitive market with publicly disclosed and privately-held information about costs. We examine the potential asymmetry-reducing role of disclosure and its impact on setting environmental taxes. From a policy perspective, our findings show that disclosure with verifiable reports, is a valuable public good, provides greater transparency in the market, and is generally efficiency enhancing. Results suggest that access to publicly disclosed information enables the fine-tuning of the tax rules towards specific environmental circumstances and improves the ability of the regulator to levy firm-specific environmental…
ECONOMIC ANALYSIS OF PROCESS INNOVATIONS IN THE MANAGEMENT OF OLIVE FARMS
2014
Within a business enterprise, process innovations l ead to reduced production costs and to increased profit margins. In this study, we shall examine an olive farm that operates in a perfectly competitive market that has introduced a process innovation so as to contain labour costs and therefore production costs. So, the paper aimed at comparing economic co mpetitiveness of an olive farm that introduced mechanical olive pickers (process innovation) for h arvest respect to manual harvest. In the case under scrutiny, for the same price, the reduced productio n cost determined a shift from a situation of being at a loss to one of profit for the business. Economic analysis showed that introducti…
Growth and sustainability of agricultural systems: the case of Sicilian wine-growing farms
2016
International audience; The Sicilian wine-growing sector is characterised by the presence on the one hand of many small enterprises that limit their activity to the first stage of the supply chain (field production) and on the other of few enterprises that adopt a strategy of total vertical integration, from the production to the sale of wine. The first group of enterprises operates in a competitive market and in many cases with marginal revenues that are lower than marginal costs, leading entrepreneurs to abandon the activity of grape production. The second group operates in an oligopolistic market and it is able to compete in an international market. Findings reveal that competitive advan…
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…
An appraisal of Piero Sraffa's 'The Laws of Returns under Competitive Conditions'
2001
The paper proposes a new interpretation of Sraffa's 1926 Economic Journal article, ‘The Laws of Returns under Competitive Conditions’, according to which the latter derives from the same strategy of research which underlies its 1925 Italian precursor, ‘Sulle relazioni fra costo e quantità prodotta’. Sraffa tested the explanatory power of a Marshallian monopolistic partial equilibrium model and concluded that that model is able to treat one source of variable returns (firm-internal economies); but this articulation of Marshall‘s theory does not substantially improve on the trade-off between logical consistency and empirical relevance which afflicted the theory in its whole. © 2001, Taylor & …