Search results for "competition"
showing 10 items of 1409 documents
Banking Competition, Collateral Constraints and Optimal Monetary Policy
2013
We analyze optimal monetary policy in a model with two distinct financial frictions. First, borrowing is subject to collateral constraints. Second, credit flows are intermediated by monopolistically competitive banks, thus giving rise to endogenous lending spreads. We show that, up to a second order approximation, welfare maximization is equivalent to stabilization of four goals: inflation, output gap, the consumption gap between constrained and unconstrained agents, and the distribution of the collateralizable asset between both groups. Following both financial and non-financial shocks, the optimal monetary policy commitment implies a short-run trade-off between stabilization goals. Such p…
Competition and inflation differentials in EMU
2008
In a monetary union, inflation rate differentials may be substantial over the business cycle. This paper parameterizes a two-country monetary union in which different economic structures in the two countries generate temporary inflation differentials. Cross-country differences are introduced in (i) the elasticity of demand in the goods markets, which cause producers to discriminate prices, (ii) the degree of price inertia and (iii) the degree of openness or preference for foreign goods in consumption. The model is calibrated to reproduce two average large EMU countries and it is able to generate such inflation differentials. We find the mechanism of price discrimination quantitatively more …
Cross-country comparisons of competition and pricing power in European banking
2009
Abstract Studies of banking competition and competitive behavior both within and across countries typically utilise only one of the few measures that are available. In trying to assess the relative competitive position of banking markets in 14 European countries, existing indicators of competition are found to give conflicting predictions across countries, within countries, and over time. This is because indicators of competition tend to measure different things and are additionally influenced by cross-country differences in cost efficiency, fee income levels, real economic growth and inflation. We attempt to separate bank pricing power from these embodied influences and derive more consist…
Inflation and optimal monetary policy in a model with firm heterogeneity and Bertrand competition
2018
Abstract We study the joint implications of heterogeneity of total factor productivity and strategic price interactions between firms on the dynamics of inflation and the design of optimal monetary policy. In this setting, more productive firms respond less to shocks affecting their marginal costs than less productive firms. As a consequence, economies with a larger proportion of highly productive firms face a flatter Phillips curve. Moreover, when these two features concur, the Ramsey problem gives rise to an optimal non-zero long run inflation that amplifies the differences in relative prices between more efficient and less efficient firms, thus increasing the market share of the former. …
Market Polarization and the Phillips Curve
2021
The Phillips curve has flattened out over the last decades. We develop a model that rationalizes this phenomenon as a result of the observed increase in polarization in many industries, a process along which a few top firms gain an increasing share of their industry market. In the model, firms compete a la Bertrand and there is exit and endogenous market entry, as well as optimal up and downgrading of technology. Firms with larger market shares find optimal to dampen the response of their price changes, thus cushioning the shocks to their marginal costs through endogenous countercyclical markups. Thus, regardless of its causes (technology, competition, barriers to entry, etc.), the recent i…
A real options game of alliance timing decisions in biopharmaceutical research and development
2017
Abstract In this article we examine the alliance timing trade-off facing both pharmaceutical and biotech firms in a stochastic and competitive environment. Specifically, we introduce a real options game (ROG), where a pharmaceutical company can choose between two competing biotech firms by sequentially offering a licensing deal early or late in the new drug development process. We find that, when the alliance raises the drug market value significantly, the agreement is signed late in the drug development process. This suggests that the postponement effect implied by the use of real options prevails over the biotech firms’ competition effect, which would instead play in favor of an early agr…
The role of the distribution platform in price formation of paid apps
2015
In this paper we study the role of the distribution platform as an important determinant of price of paid apps. We also examine how the distribution platform influences the price implications of important developers' app-level decisions. To these purposes, we construct a hierarchical model of price formation by using an ad-hoc panel dataset consisting of top paid apps from the two major app stores, namely Apple's App Store and Google Play. Our findings show that prices of paid apps strongly depend on the platform where the apps are marketed. Specifically, the App Store is associated with lower prices for paid apps than Google Play. We find evidence that this is because the impact of cross-s…
The determinants affecting the internationalisation of the Italian SMEs producing sparkling wines: An empirical study on the RBV of the firms
2014
In the last few years, wine industry has been characterised by profound changes that have determined an intensification of competition on a global scale. The aim of this study is to identify the firms’ internal factors that most influence the export intensity and the ability to fit into the international market of the Italian wineries producing sparkling wines through a resource-based view (RBV) approach. Results of our study supporting the findings of previous empirical researches presented in this paper. In particular, the main factors affecting export intensity are: innovation degree and intensity of investment in advertising and promotion, among firms’ characteristics, and abroad experi…
Part-of-speech labeling for Reuters database
2015
Even if the Vector Space Model used for document representation in information retrieval systems integrates a small quantity of knowledge it continues to be used due to its computational cost, speed execution and simplicity. We try to improve this document representation by adding some syntactic information such as the parts of speech. In this paper, we have evaluated three different tagging algorithms in order to select the most suitable tagger for using it to tag the Reuters dataset. In this work, we have evaluated the taggers using only five different parts of speech: noun, verb, adverb, adjective and others. We considered these particular tags being the most representative for describin…
On the analysis of viability data: an example with Drosophila.
1990
Larval competition experiments involving two wild type and eight mutant strains of Drosophila melanogaster have been carried out following the substitution procedure proposed by Mather and Caligari (1981). Our main goal has been to compare the competitive abilities of two phenotypically indistinguishable strains (wild and Oregon-R) by means of their responses with eight different mutants. Prior to the analyses of viability data, we have studied the normalizing effect of several transformations in order to determine which was best suited for the analyses. The differences found among the five transformations tested and the untransformed data were not very great. The folded power transformatio…