Search results for "Perfect competition"
showing 10 items of 22 documents
Welfare, Home Market Effects, and Horizontal Foreign Direct Investment
2005
We investigate the spatial distribution and organization of an imperfectly competitive industry when firms may choose to operate more than a single production unit. Focusing on a short-run setting with a fixed mass of firms, we fully characterize the spatial equilibria analytically. Comparing the equilibrium and the first-best, we show that both organizational and spatial inefficiencies may arise. In particular, when fixed costs are low enough the market outcome may well lead to overinvestment and, therefore, to too many multinationals operating from a social point of view. Furthermore, once multinationals are taken into account, the market outcome may well lead too little agglomeration.
Strategic interactions on differentiated markets and public policies
2017
In economy, the competition analysis among firms have a significance importance because of the complexity of some elements. This thesis examines the strategic interactions on differentiated markets in general equilibrium while proposing the public policies to reduce the distortions due to the imperfect behaviors. This thesis takes into account the differentiation of products in order to obtain the new conclusions and/or to extend those existing. We thus pursues two objectives. Fisrt, the construction of a model of imperfect competition on differentiated markets in a general equilibrium framework. Second, the evaluation of the consequences of the model in terms of economic policies. At begin…
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 waves of enterprises bankruptcy and the factors that determine them: the case of Latvia and Lithuania
2018
International audience; Bankruptcy of enterprises is macroeconomic issue and a phenomenon of a dynamic and competitive market economy. It results in a lot of negative effects not only for the enterprise and its employees but also for other enterprises and institutions, as well as the state and society. The aim of the article is to carry out the analysis of bankruptcy of Latvian and Lithuanian enterprises. No such study has been carried out so far. Article analyses the dynamics of Latvian and Lithuanian enterprise bankruptcy, which manifest themselves in larger waves in certain periods and the factors that influence them. From 1993-when the bankruptcy of enterprises was started to be officia…
R&D, Competition and Growth with Human Capital Accumulation Revisited
2012
In this paper, we have presented a generalization of Bucci's (2003) model in which have disentangled the monopolistic mark-up in the intermediate goods sector, the intermediate goods share in the final output and the returns to specialization in order to have a better measurement of competition. Indeed, unlike Bucci (2003), in our model, the measure of competition is completely independent of the intermediate goods share in the final output and the returns to specialization. Our main finding is that, unlike Bucci (2003), we show that the competition does not play any role in growth. This result is explained by the complementarity of innovation and human capital assumed in the research produ…
Environmental values and customer-perceived value in industrial supplier relationships
2017
This study addresses a gap in the research on supply channel management by integrating environmental values and value creation in the context of buyer-supplier relationships. This study has two objectives: (i) to explore the environmental values structure of industrial customers, and (ii) to test the effect of environmental values on overall value perceptions. The effect of customer's environmental values on the supplier's environmental image and customer-perceived value is tested with structural equation modeling using the PLS method. The empirical analysis is based on a global sample of industrial companies that have a high impact on the environment (n = 121). Key findings of this study a…
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…
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…
Informal employment in developing countries
2012
There is an ongoing debate among researchers and policy makers, whether informal sector employment is a result of competitive market forces or labor market segmentation. More recently it has been argued that none of the two theories sufficiently explains informal employment, but that the informal sector shows a heterogenous structure. For some workers the informal sector is an attractive employment opportunity, whereas for others – rationed out of the formal sector – the informal sector is a strategy of last resort. To test the empirical relevance of this hypothesis we formulate an econometric model which allows for several unobserved segments within the informal sector and apply it to the …
On Capturing Oil Rents with a National Excise Tax Revisited
2004
In this paper the scope of Bergstrom’s (1982) results is studied. Moreover, his analysis is extended assuming that extraction cost is directly related to accumulated extractions. For the case of a competitive market it is found that the optimal policy is a constant tariff if extraction is costless. However, with depletion effects, the optimal tariff must ultimately be decreasing. For the case of a monopolistic market the results depend crucially on the kind of strategies the importing country governments can play and on whether the monopolist chooses the price or extraction rate. For a price-setting monopolist it is shown that the importing countries cannot use a tariff to capture monopoly …