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Aiming at the lack of explanatory power of traditional industrial organization theory in cross-border competition, by introducing the idea of ecological niche, the authors aim to explore the competitive situation of platform-based enterprises when they operate in multiple fields.

With the help of ecological niche theory, construct the niche width and niche overlap index of typical enterprises in the platform economy, and find out the advantages and the intensity of competition through comparative analysis.

In an environment of cross-border competition, large enterprises have significant competitive advantages, and the fierce competition is concentrated among medium-sized enterprises.

The conclusions of this paper not only provide new insights for explaining the phenomenon of cross-border competition in the platform economy, but also provide theoretical reference for the anti-trust enforcement practice in the platform economy.

This paper aims to analyze the development of European Deposit Insurance (DI) and assess the recent development at the EU level to establish a European Deposit Insurance Scheme (EDIS) in the context of a more integrated financial framework: the Banking Union (BU).

The author uses literature review and empirical evidence to analyze the dynamic interaction among European governments in an effort to attract aggressive deposits with severe repercussion for financial stability.

The paper argues that a liquidity providing EDIS would render regulatory subsidy and rent-seeking behavior persisting by allowing national policies to be pursued with considerable discretionary power and in the context of increasing competition for deposits. This would run contrary to the BU objectives and constitute a major failure of the program.

The findings of the study can be helpful in understanding the DI policies pursued by European governments and their implications.

To the best of the authors’ knowledge, this is the first study that examines the interactions among European governments in pursuing DI policies and assesses the implications of EDIS.

The purpose of this study is to understand turbulence in the field of payments in Europe and which future challenges this bring. The objective is to enable actors – industrial as well as policy-making agencies – to avoid becoming passive and reluctant to take needed steps that may realize a new playing field for payments.

The article uses scenario analysis methodology to propose a way forward if the field of payments is to move away from turbulence and instead embrace renewal. It is based on a literature study, interviews and workshops.

This article discusses and shows how the payment system is in a state of turbulence, which in itself, may become a self-reinforcing negative process. The seemingly rational competitive actions that firms take in this situation may make the situation worse. The article also outlines critical action that must be taken to avoid this negative process.

There is a need for research that integrates studies on innovation and renewal in the critical industries – banking, telecom and the system driving industries – to improve our understanding of possible synergies and/or obstacles to integrated, cross-industry innovation efforts. Such insights may also lay the foundation for the creation of a way to overcome turbulence.

The article advocates the need that critical actors collaborate to develop a new understanding – or common ground – of a future payment system. This will serve as a tool to identify obstacles and challenges, develop action and formulate agendas for different actors in and around the system. Based on the new common ground, actors are then free to formulate their own strategic agendas in a new competitive landscape in the field of payments.

If the turbulence is to be avoided, national governments in the euro area and the European Union Commission must work hard to avoid national exemptions and adaptations (often caused by strong lobbying by companies from each country in question). Innovation agencies must work so as to stimulate renewal. Another task could be to educate consumers on the social and economic benefits of moving away from a cash-based payment system.

The originality of this paper is to test the idea that turbulence and the consequential inertia in the payment system is a result of the institutional set-up of the industry. In addition, the article uses causal texture theory and scenario analysis to understand turbulence and inertia in the payment system. This has, to my knowledge, not been done before.

The purpose of the study is to explore how technological capability and exogenous pressure interactively influence business model (BM) dynamics over time in new technology-based ventures.

The study adopts a longitudinal case study of the BM innovations of a Chinese financial technology venture. The structural approach and temporal bracket are used to analyze and theorize the data.

The findings indicate that distinct contextual changes impel a firm to refine or abandon existing BMs over time. In different stages, the antecedents interactively influence BM dynamics with three successive patterns, namely pressure dominance, parallel influence and hybrid influence. While both antecedents trigger changes during the initiation and implementation of new BMs, they also serve as the filter and the enabler, respectively, during the ideation and integration of BMs.

The study inductively develops three propositions regarding the relationship between BM dynamics and its antecedents, which is based on the data collected from one single firm. Future research should test the propositions in other domains and take more cross-level antecedents into consideration.

The study contributes to the nascent research stream of BM dynamics by offering in-depth insights into the interaction of internal and external antecedents and by linking the differentiated roles of antecedents to the BM innovation process. The research offers some practical implications for new technology-based ventures seeking to develop BMs in a fast-changing environment.

This study aims to disclose how the nature of corporate ownership, stock efficiency and wage level affect the optimal proportion of employee stock.

This paper studies three duopoly markets: two private enterprises, two state-owned enterprises (SOEs) and a private enterprise and an SOE. The competitions between the two parties are taken as a two-stage dynamic sequential game and studied through back-induction.

The results reveal that the enterprise ownership has a directly bearing on the optimal proportion of employee stock and determines whether to implement the employee stock ownership plan (ESOP) and the specific level of the plan. The optimal proportion of employee stock is positively correlated with its contribution to enterprise efficiency. There are many influencing factors on the effect of wage level on the optimal proportion of employee stock, namely, the ownership nature of ESOP implementer and efficiency difference of different nature stocks.

The results of this study provide policy recommendations for companies preparing to implement ESOP.

The research findings provide policy implications for enterprises to prepare a suitable ESOP and the reform of national equities, especially the mixed-ownership reform in China.

The paper aims to reveal the attitude of the Russian competition authorities towards cross-border mergers involving foreign buyers. The study addresses the following question: Is the probability of Russian competition authorities' intervention significantly different when a foreign buyer takes part in the merger? This is the key test to reveal whether competition authorities gravitate towards “economic nationalism” or “promotion of foreign investments”.

The discrete choice model is applied to the dataset of 7,607 merger cases investigated by the Russian competition authorities between 2012 and 2017. The probability of competition authorities' intervention, such as merger correction by using remedies or deal rejection, is used as a measure of special attention.

The study finds out favoritism patterns of the regulator with regard to foreign companies. In particular, the deals involving a foreign buyer had less chance of intervention, i.e. imposition of remedies, from national competition authorities. The sanctions period does not moderate the probability of approval of a cross-border merger with foreign buyers by the Russian competition authorities.

The paper contributes to merger control literature by addressing the political economy issues. It discovers that, besides regulation by the law, there are hidden motives, such as protectionism or favoritism of foreign companies, which could drive the regulator's decision. Therefore, the studies of cross-border mergers provide an opportunity to investigate the political issues of merger control through the identification of a special attitude to foreign companies and analysis of regularities that might explain such a policy.

The European Union’s Digital Markets Act (DMA) calls for far-reaching changes to the way economic activity will occur in EU digital markets. Before its remedies are imposed, it is critical to assess their impacts on individual markets, the digital sector, and the overall European economy. The European Commission (EC) released an Impact Assessment in support of the DMA that purports to evaluate it using cost/benefit analysis.

An economic evaluation of the DMA should consider its full impacts on dynamic competition. The Impact Assessment neither assesses the DMA's impact on dynamic competition in the digital economy nor evaluates the impacts of specific DMA prohibitions and obligations. Instead, it considers benefits in general and largely ignores costs. We study its benefit assessments and find they are based on highly inappropriate methodologies and assumptions. A cost/benefit study using inappropriate methodologies and largely ignoring costs cannot provide a sound policy assessment.

Instead of promoting dynamic competition between platforms, the DMA will likely reinforce existing market structures, ossify market boundaries, and stunt European innovation. The DMA is likely to chill R&D by encouraging free riding on the investments of others, which discourages making those investments. Avoiding harm to innovation is critical because innovation delivers large, positive spillover benefits, driving increases in productivity, employment, wages, and prosperity.

The DMA prioritizes static over dynamic competition, with the potential to harm the European economy. Given this, the Impact Assessment does not demonstrate that the DMA will be beneficial overall, and its implementation must be carefully tailored to alleviate or lessen its potential to harm Europe’s economic performance.

This paper first attempts to analyze the issue of brand proliferation by a monopolist allowing transfer pricing as a channel to bridge headquarters and brand divisions, and then to view how the headquarters uses transfer pricing as a strategic device to encounter intra‐brand competition, inter‐brand competition and cross‐border profit‐shifting under an oligopolistic market.

This paper models cross‐country interactions in a Cournot‐Nash framework, and characterizes equilibrium that involves both transfer pricing and output decision. MNE's behavior is based on a two‐stage process in which the centralized headquarters' prior action on setting transfer pricing is to backup the decentralized subsidiaries in their output decision‐making.

It is demonstrated that MNEs have the incentive to manipulate their transfer prices in order to shift profit cross‐border. Higher transfer pricing enables brand divisions to collude easier in the intra‐brand competition model, and the level of transfer price hinges upon the strength of intra‐brand competition and inter‐brand competition. In addition, transfer pricing is affected by tax differences between two countries.

This paper provides the theoretical underpinning to see how headquarters may use transfer pricing as a strategic device to face intra‐ and inter‐brand competition that is visibly evident in many diverse industries.

Branching is not the only way for foreign banks to enter a national market, and it is impractical when there are informational and cultural barriers and asymmetries among countries. The purpose of this paper is to analyze the determinants of cross-border branching in the Latin American banking sector, a region with regulatory disparity and political and economic instability, offering elements to a grounded strategic decision.

This study uses data from six Latin American countries. To account for the preponderance of zero counts, classes of zero-inflated models are applied (Poisson, negative binomial, and mixed). Model fit indicators obtained from differences between observed and estimated counts are used for comparisons, considering branches in each region established by banks from every other foreign region of the sample.

Branching by foreign banks is positively correlated with the population, GDP per capita, household disposable income, and economic freedom score of the host country. The opposite holds for the unemployment rate and entry regulations of the host country.

Few paper address cross-border banking in emerging economies. This paper analyzes cross-border branching in Latin America in the context of the current financial integration and bank strategy. Econometrically, its pioneering design allows modeling of inflation of zeros, over-dispersion, and the multilevel data structure. This design allowed testing of a novel country-level variable: the host country’s economic freedom score.

In this paper, the author examines how fund management is destined to be the largest source of growth in investment assets once the European single currency is introduced. The removal of currency costs and currency risks in the conduct of cross‐border business will improve investment flows within the euro zone and generate an increase in investment assets from pension funds. The author warns that the introduction of the euro is likely to toughen cross‐border competition between market intermediaries and cause a reduction in costs, increasing the attractiveness of trading and investing in Europe. The removal of currency risk and convergence in yields will lead fund managers to seek alternative ways to give their fund performance an advantage over their competition.