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Article
Publication date: 23 May 2024

Svetlana Golovanova and Eduardo Pontual Ribeiro

Explore the effects of competition policy on an important competitive dimension of digital platforms, namely quality.

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Abstract

Purpose

Explore the effects of competition policy on an important competitive dimension of digital platforms, namely quality.

Design/methodology/approach

The deterrence effect of competition policy should induce firms to compete on merits, with lower prices and higher quality for consumers. Deterrence, or the inducement not to infringe competition law, may depend on the harshness of penalties and/or the likelihood of conviction. We use competition policy indicators that are associated with these deterrence dimensions, allowing for non-linearities and interactions of the indicators. We use a unique data survey of digital gig platform users, that covers at least two dozen platforms and more than 50 countries. Quality is measured using multidimensional indicators of the level of satisfaction of platform users with different platform services. We control for platform user and country characteristics, including other regulatory indicators such as labor laws, to recover different effects.

Findings

Results suggest that competition policy is relevant for differences in product quality across platforms and countries. Important non-linearities are uncovered, where substantive rules of competition policy interact with competition authority power. The effects depend on either level of the indicators, suggesting that deterrence effects depend upon a combination of both law in the books and competition policy practice.

Practical implications

The estimates suggest a need to balance both dimension of deterrence, namely, strictness and effectiveness to expand the effects of competition policy on competition.

Originality/value

This is the first paper that explores the effect of competition policy on non-price or non-margin competition dimension. It is the first to study the effect on a sample of digital platforms. It contributes to the literature of deterrence effects of competition policy.

Details

Journal of Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3585

Keywords

Book part
Publication date: 28 September 2023

Victoria Cociug and Carolina Parcalab

The competitiveness of companies and their capacity to join markets have changed as a result of the digital economy. One of the reasons the European Commission will revise the…

Abstract

The competitiveness of companies and their capacity to join markets have changed as a result of the digital economy. One of the reasons the European Commission will revise the rules governing block exemptions for R&D agreements and begin consulting stakeholders in March 2022 is the impact of digitalisation on markets. This chapter looks into how digitalisation has impacted the competitive analysis and evaluation that Moldovan businesses and the competition authority must conduct when looking at R&D collaborations.

For the purposes of the research in this chapter, we used methods such as analysis, deduction, induction, and synthesis of conceptual approaches to the digitalization of the competitive assessment, to elucidate the factors influencing competitiveness in R&D agreements. We also assessed the situation in the Republic of Moldova to formulate conclusions and own opinions about how the introduction of new processes and products on the market will stimulate competition among national firms and will strengthen their ability to compete in regional or even international markets. The recommendations and proposals for improving the management of competence to encourage businesses to innovate collaborate and exchange knowledge to produce innovative goods and services, including green economy solutions and initiatives with the security to comply with a competition policy adapted to the requirements of the new economy, as well as to the new changes in the European competition policy.

Details

Digital Transformation, Strategic Resilience, Cyber Security and Risk Management
Type: Book
ISBN: 978-1-83797-009-4

Keywords

Book part
Publication date: 28 September 2023

Gani Asllani, Bedri Statovci and Simon Grima

In this paper, we analyse and provide an overview of the functions the state aid in Kosovo and demonstrate their compliance with EU rules in fidls of state aid Article 107(3)(b…

Abstract

In this paper, we analyse and provide an overview of the functions the state aid in Kosovo and demonstrate their compliance with EU rules in fidls of state aid Article 107(3)(b) TFEU. We deal with the level of implementation of state aid rules by Kosovo institutions, especially Kosovo’s Commission for State Aid. We provide an overview of the State of Kosovo in fulfilling its obligation on state aid issues based on the Stabilisation and Association Agreement and others documents, which is a step forward for EU integration. We do this by conducting a comparative analysis of the data collected from both primary and secondary sources to demonstrate the current situation on state aid in Kosovo and determine the most appropriate means to build a strong and efficient National State Aid Commission. Findings from the study show that Kosovo Aid Commission is still in a development phase, and more needs to be done to create an adequate state aid regime. We propose measures to ensure the effective implementation of the state aid law.

Details

Digital Transformation, Strategic Resilience, Cyber Security and Risk Management
Type: Book
ISBN: 978-1-80455-262-9

Keywords

Book part
Publication date: 11 December 2023

David J. Teece and Henry J. Kahwaty

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…

Abstract

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.

Details

The Economics and Regulation of Digital Markets
Type: Book
ISBN: 978-1-83797-643-0

Keywords

Book part
Publication date: 11 December 2023

Elvira Caterina Parisi and Francesco Parisi

Social media networks make their services freely available to all users. Users pay for the service received with the time and attention taken by the advertisements. This chapter…

Abstract

Social media networks make their services freely available to all users. Users pay for the service received with the time and attention taken by the advertisements. This chapter argues that social media platforms are a unique form of monopoly driven by “the more the merrier” effect (i.e., network effects) in users' consumption. These monopolies exercise market power, not by charging higher prices to users but by “tying” larger amounts of advertising to their content. Traditional antitrust instruments designed to address excessive pricing and reduced output by monopolies need to be reframed to tame the attention economy problems in the social media industry. This chapter discusses five antitrust instruments grouped in three categories: structural, behavioral, and market-based remedies. Market-based solutions are the least explored in the literature, despite being the most promising instruments to lower the attention costs imposed on users, while preserving the economies of scope in production and the network effects in consumption, and possibly maintaining free access to social media, as we know it today.

Details

The Economics and Regulation of Digital Markets
Type: Book
ISBN: 978-1-83797-643-0

Keywords

Book part
Publication date: 11 December 2023

Antonio Davola and Gianclaudio Malgieri

The attempt to establish a common European framework for core platforms' duties and responsibilities toward other actors in the digital environment is at the core of the recent…

Abstract

The attempt to establish a common European framework for core platforms' duties and responsibilities toward other actors in the digital environment is at the core of the recent scholarly debate surrounding the Digital Markets Act (DMA) proposal. In particular, the everlasting juxtaposition between the “data power” – as emerging from recent cases (Section 2) – that dominant tech companies enjoy and the concept of consumer sovereignty (Section 3) lies at the core of the proposal's attempt to identify digital core platforms as market gatekeepers. Accordingly, this chapter critically investigates the divide between power imbalance and consumer sovereignty in light of the architecture designed by the DMA, with a specific focus on its effectiveness in identifying gatekeepers' power drivers (Section 4). After highlighting the main critical aspects of the pertinent rules, opportunities for fruitful developments are then identified through the reframing of some of the notions considered in the proposal, and namely the role of “lock-in” effects and “data accumulation” (Section 5). Lastly, this chapter suggests that the DMA advancements – while desirable – are bound to be fragmentary in the absence of a wider appraisal of the nature of data power imbalance dynamics in the modern digital markets (Section 6).

Details

The Economics and Regulation of Digital Markets
Type: Book
ISBN: 978-1-83797-643-0

Keywords

Open Access
Article
Publication date: 27 February 2024

Stephana Dyah Ayu Ratnaningsih, Imam Ghozali and Puji Harto

The paper aims to examine Indonesian accounting students’ intention to become sustainable accountants (ISAs) using a modified theory of reasoning action model.

Abstract

Purpose

The paper aims to examine Indonesian accounting students’ intention to become sustainable accountants (ISAs) using a modified theory of reasoning action model.

Design/methodology/approach

Primary data were collected from 239 respondents from five reputable universities in Semarang, Indonesia, using a structured questionnaire. A random sampling technique was employed and used in selecting respondents. The data were then analyzed using smart PLS (version 3.2.9) to obtain the final results.

Findings

The results show university sustainability (US) and attitudes toward sustainability (ATS) affect students' intentions to become ISAs. Knowledge has no direct correlation with students' intention to become ISAs. Path analysis shows a significant correlation between US and students' knowledge, attitudes and intentions regarding sustainability.

Originality/value

This is different from previous studies, which only focused on factors influencing students' intentions to pay attention to sustainability. This study focuses on prospective accountants because, in the future, they will be the technical executors of reporting using path analysis. This study further analyzes the relationship between existing antecedent variables. The results show that sustainability at the university is a variable that can influence all other variables.

Article
Publication date: 7 June 2022

Özge Gürsoy and Nazlı Ferah Akıncı

The inadequacy of regulations, the uncertainty of the quality of houses produced and the needs of users all highlight the need for a house analysis in Turkey. The goal of this…

Abstract

Purpose

The inadequacy of regulations, the uncertainty of the quality of houses produced and the needs of users all highlight the need for a house analysis in Turkey. The goal of this study is to understand housing quality in Turkey based on the gap between expectations and existing housing stock, to identify the main housing expectations and the problematic issues in the current housing situation.

Design/methodology/approach

The authors designed a survey using the quality indicators of several well-known housing quality assessment tools to reveal residents' housing preferences and current housing situation in Turkey. The authors analyzed the survey results to identify the gap between housing preferences and existing conditions to reveal the housing quality of Turkish housing.

Findings

Overall results show that residents in Turkey, regardless of their demographics, want and need better houses. It was determined that physical conditions, safety, aesthetics and accessibility are the issues for which the expectations of the participants are high and the lack of which is most felt.

Originality/value

This paper reveals the residents' perspective on housing and their housing quality. It emphasizes the need for more research on housing quality, the need for updated regulation and necessity of a housing quality assessment tool in Turkey.

Details

Property Management, vol. 42 no. 2
Type: Research Article
ISSN: 0263-7472

Keywords

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