Competitive Market Structures: A Subset Selection Analysis

PurposeThe objective of this paper is to propose a consumer-behavior-based intelligence (CBBI) model to identify market structure so as to monitor product competition. Competitive intelligence extracted from Chinese e-business clickstream data is exploited to examine the relevance of consumers' heterogeneous behavioral feedback, namely, click, tag-into-favorite, time-of-browsing, add-into-cart, and remove-from-cart, to visualize the competitive product market structure and to predict product-level sales.Design/methodology/approachOur proposed CBBI model consists of visualization and prediction, which explore e-business clickstream data. We conduct the visualization and segmentation of market structure in the form of a perceptual map by employing K-means clustering algorithm and multidimensional scaling technique. Concurrently, we developed an updated Bayesian linear regression (BLR) to predict product-level sales by considering consumers' heterogeneous feedback. Our updated BLR specifically integrated the estimated knowledge of the previous periods to verify whether product sales are period-dependent due to the consumer memory effect in e-commerce, improving the conventional BLR of diffuse prior distribution setup in terms of mean absolute error (MAE) and root mean squared error (RMSE).FindingsConsidering the performance of consumers' heterogeneous actions, the present research visualized three different segments of the competitive market structure in a perceptual map, and its horizontal axis is shown as a signal of the ascending trend of product sales. The previous five-day period was ascertained to be the best size of a time window for the consumer memory effect on product sales prediction. This hypothesis is supported by the concept that product sales are period-dependent. The results of the proposed updated BLR indicate that consumer tag-into-favorite, add-into-cart, and remove-from-cart feedback have positive impacts on product-level sales while click and time-of-browsing have the opposite effect.Originality/valueWhile the identified competitive product market structure elaborates consumer heterogeneous feedback toward alternative product choices, this paper contributes by extending those homogeneous consumer preferences-related marketing studies. The perceptual map's configuration in respect to period-dependent product sales facilitates the effective inclusion of consumer behavior application in product sales prediction research in e-commerce. This paper helps sellers and retailers better comprehend the impacts of heterogeneous feedback and the consumer memory effect on the degree of competition in the form of product sales. The research results also offer a managerial implication about shaping the competitive edge by conducting different product management strategies in e-commerce platforms.

The purpose of this paper is to discuss the relation between international trading rules and the market mechanisms. The aim of the GATT/WTO is to promote international trade through market mechanism based on a competitive market structure and to be supported by the fundamental theorem of welfare economics that states a competitive market equilibrium induces the Pareto optimal resource allocation. However, if a market is not competitive or is distorted, it may fail to optimize national welfare through resource allocation. Under the current international trading rules, the Free Trade Agreements and State Trade Enterprises are exceptionally allowed. Trade diversion effects and the market power of the State Trade Enterprises might deteriorate the national welfare. In the long run, it is of utmost importance to remove these distortions. When the welfare change in domestic policies harmonized under the international trading rules is evaluated in the short and medium terms, it is necessary to consider the market distortions as well as the appropriate market structure. Since there are a few econometric studies that identify the international market structure, it is valuable to accumulate the empirical studies regarding international agricultural markets.

The paper reviews the formulation of optimal power flow (OPF) and its role in dispatch. It then outlines possible uses of OPF market structures and describe the major drawbacks. The use of OPF for market players with a portfolio of generating units, however, is an appropriate and useful application of OPF in competitive markets. The OPF in such cases is a useful tool to determine the most cost-effective approach to discharge certain contracted market obligations since there is a centrally controlled single ownership situation. The application of OPF in such cases is reviewed. The paper emphasizes the limitations and capabilities of applying the OPF tool in market structures.

From Solow to Romer: Teaching endogenous technological change in undergraduate economics

The purpose of the present chapter is to analyse general equilibrium effects of different trade liberalization policies for India under imperfectly competitive market structure. Since present day world trade is much akin towards the increasing returns to scale and market structure oriented industry behaviour, we have considered monopolistically competitive market structure for our analysis. Computable General Equilibrium (CGE) modelling has been applied as it seems to be relevant methodology for policy simulation. Consumer's love for variety and increasing returns to scale present in the sectors involving large fixed costs, are strong determinants of consumer's as well as producer's business confidence. Our study reveals that increased welfare gain due to trade and openness is not much larger as compared to standard perfect competition scenario as the scale economy benefit is predominant only in few sectors like capital goods industries and not prominently visible in large agricultural and informal manufacturing sectors.

The market structure of the industry can be analyzed by reference to various indicators. These indicators are small or large firms operating in industry, market share, technological structure and competitive conditions. Todays is valid conditions of imperfect competition, concentration is one of the important indicators that determine whether they have a competitive structure operates. The main objective of this study is to analyze the market structure of the Turkish Cement Industry for the period of 2010-2014. To achieve this goal, domestic, foreign and net sales of firms data used in the study, N-Firm Concentration Ratio, Herfindahl-Hirschman and Entropy Index methods applied separately for each period, using the data set related to the domestic, foreign and net sales of firms in the industry. Consequently, the industry was determined as an oligopoly according to CR4 and CR8 while it was in a competitive market structure according to Herfindahl-Hirschman Index and Entropy Index.

A linear-quadratic dynamic oligopoly model is used to estimate the competitiveness of the rice export market. The model nests various market structures using either open-loop or feedback strategies. The estimated feedback model implies a less competitive market structure than the estimated open-loop model. The rice export market is oligopolistic, but it is closer to competitive than collusive. Copyright 1989 by MIT Press.

Monopoly and anti-monopoly regulation in the field of platform economy has gradually become a hot and difficult issue of global concern. Based on the competitive monopoly market structure of the platform economy, algorithmic price discrimination, algorithmic price collusion, exclusive monopoly agreements and prohibitions, and other price and nonprice market behaviors, this paper conducts a case study on the relationship between the special market structure, market behavior, and anti-monopoly regulation in the field of the platform economy. The study finds that the market behavior of the Platform economy is relatively independent of the market structure. The market structure of digital platforms is effective, realizing the transformation of the Marshall Conflict. The focus of anti-monopoly regulation of the Platform economy should be on market behavior.

As a raw material in the textile industry, nonwovens mainly include masks, protective clothing, surgical gowns, etc. in the final products of medical and hygiene products. The arrival of the new crown epidemic has made the demand for such products soar. Therefore, the nonwovens industry is also gaining huge attention in the short term. Based on the research context of the Structure-Conduct-Performance paradigm, the nonwovens industry in China was studied. Firstly, the development status of Chinese nonwovens industry was analyzed, and then the market concentration, product differentiation and entry and exit barriers of Chinese nonwovens industry were analyzed, and it is concluded that Chinese nonwovens industry is a competitive market structure. Then on this basis, the market behavior and market performance of enterprises in the competitive market structure were discussed. Finally, based on the above research, put forward targeted suggestions for the long-term development of Chinese nonwovens industry.

This paper examines the dynamic relationship between competition, liquidity provision, and market structure. By examining the entry and exit of market makers in the Australian Options market, this study empirically analyses the issue of market maker competition. Results indicate that market maker entry depends on a broad range of profit, risk and market concentration characteristics, but free market maker movement does not explicitly result in a competitive market structure. This study also finds that the degree of market concentration additionally affects the marginal impact of market maker entry (exit), but the effect is significantly more pronounced for the most liquid classes of options. The implication of this finding is pertinent to market regulators since market maker competition may not necessarily contribute to enhancing market quality for less liquid securities.

This paper investigates the market structure of banking industry in Tunisia and evaluates the degree of competition. The current analysis employs a widely used non-structural methodology put forward by Panzar and Rosse (1987), the so-called H-statistic, and draws upon a comprehensive panel dataset of Tunisian banks covering the period 1999 to 2008. The estimated H statistics for the whole sample periods are positive (0.67 and 0.71) and the Wald test for the market structure of monopoly or perfect competition is rejected, implying that the banks in Tunisia earned their revenue in the condition of monopolistic competition. Key words: Market structure, competition, concentration, Panzar and Rosse methodology.

Does Market Size Matter? A Dynamic Model of Oligopolistic Market Structure, Featuring Costs of Creating and Maintaining a Market Position

This study investigated the economic analysis of sweet potato (Ipomoea batatas) marketing in Abuja Municipal Area Council (AMAC), Nigeria, with specific emphasis on the socio-economic characteristics of marketers, market structure, marketing efficiency, profitability, and the major constraints affecting performance. Primary data were collected from 200 randomly selected sweet potato marketers using a well-structured questionnaire and analyzed using descriptive statistics, Gini Coefficient, marketing efficiency ratios, and profitability models. The findings showed that 67% of marketers were within the active age group of 30–49 years, predominantly male (60%), and 41% had attained secondary education. Furthermore, 63% operated at the retail level, while 59% were members of cooperative associations, implying a moderately experienced and organized marketing network. The Gini Coefficient for retail traders (0.44) signified a moderately concentrated and imperfectly competitive market, whereas that for wholesalers (0.10) indicated a highly competitive and equitable market structure. Marketing efficiency values stood at 234% for retailers and 196% for wholesalers, reflecting economic efficiency across both scales, with retailing performing slightly better. Profitability assessment revealed wholesalers earned ₦68,400 per truckload, with a Return per Capital Invested (RPCI) of 22% and a marketing margin of 33%, while retailers realized ₦10,100 per 100 kg unit, attaining an RPCI of 55% and a margin of 44%. Key constraints identified included poor road infrastructure (79%), high transportation costs (71%), unstable prices (67.5%), and inadequate credit facilities (64%). The study establishes that sweet potato marketing in AMAC remains profitable and efficient despite prevailing infrastructural and institutional bottlenecks.

The purpose of this study is to examine how the competitive advantage on international markets based on sustainable production is reflected in the pricing behavior of farmed fish, using Norwegian Atlantic salmon (Salmo salar) as an example. The salmon is widely consumed and highly traded due to the rapid development of aquaculture. Norway, which has been successful in regulating and innovating for sustainable aquaculture, accounts for more than half of world production. A model dealing with pass-through of exchange rates and tariff rates based on the exporter’s profit maximization was applied to 28 major countries importing from Norway, using yearly panel data for 2000–2016. Significant evidence of price discrimination was observed in Asian countries where Norway has a high market share, such as China, South Korea, Thailand, and Vietnam. This implies that the market structure of imperfect competition played a major role, suggesting the need to diversify imports to transform the market structure in favor of consumers in Asian countries. Research on the pricing behavior of fisheries products, including cultured fish, is limited in international trade. This paper addresses the gap by applying the pass-through model with changes in tariff rate as well as exchange rate.

It is an overview of Indian banking market structure and analysis of competition for a quarter century since 1991 in view of persistent public sector dominance governing market for more than a half-century. For this purpose, concentration and degree of competition are examined by the structural and non-structural methods to find out the underlying market structure of the banks. The k-firm concentration ratios and Herfindhal-Hirschman Index (HHI ) are estimated to find out concentration and implied degree of competition in the banking sector. Further, competitive behaviour of the banks is also tested by using the non-structural Panzar-Rosse (P-R) Model. The study covers almost a quarter century of post-reform period from 1991–1992 to 2014–2015. The results of the k-firm concentration ratios and HHI values indicated the presence of oligopolistic condition in Indian banking for these years. Further, the H-statistic values of 0.56 lend support to the above conclusion.