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Book part
Publication date: 24 May 2021

Dennis L. Weisman and Soheil R. Nadimi

We examine a setting in which a vertically integrated provider (VIP) initially has a duty to deal with an independent rival at unregulated upstream and downstream prices…

Abstract

We examine a setting in which a vertically integrated provider (VIP) initially has a duty to deal with an independent rival at unregulated upstream and downstream prices. The duty to deal is subsequently terminated which enables the VIP to acquire the independent rival (or the expertise necessary to produce the rival's product) and then serve as a two-product monopolist in the downstream market. We find that the refusal to deal decreases rivalry but increases economic efficiency and is therefore presumptively “pro-competitive.” The paramount policy question concerns whether a refusal to deal that eliminates a rival and monopolizes the downstream market while increasing static efficiency should be considered a violation of Section 2 of the Sherman Act. This analysis also has implications for policies governing the unbundling of next-generation telecommunications networks.

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The Law and Economics of Patent Damages, Antitrust, and Legal Process
Type: Book
ISBN: 978-1-80071-024-5

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Book part
Publication date: 29 August 2018

Timothy J. Tardiff and Dennis L. Weisman

The competition and regulatory economics literature has developed indicators that detect whether a vertically integrated provider (VIP) is engaging in market exclusion in…

Abstract

The competition and regulatory economics literature has developed indicators that detect whether a vertically integrated provider (VIP) is engaging in market exclusion in the form of an anticompetitive price squeeze and non-price discrimination leading to sabotage of downstream competitors. Weisman integrates these indicators by developing a safe-harbor range within which a profit-maximizing VIP engages in neither form of market exclusion. Downstream retail competition that depends on the VIP’s inputs imposes upward pricing pressure on the downstream prices, with the amount of such pressure increasing as the downstream products become more homogeneous (closer substitutes). We analyze the implications of upward pricing pressure for antitrust evaluations of a duty to deal, regulatory policies mandating wholesale inputs for entrants, and vertical mergers. We find, for example, no basis to oppose a merger in which the VIP was previously required to supply inputs to rivals at unregulated prices.

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Healthcare Antitrust, Settlements, and the Federal Trade Commission
Type: Book
ISBN: 978-1-78756-599-9

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Book part
Publication date: 6 August 2014

Darren Prokop

This chapter examines the unique regulatory environment that trans-border air carriers work within. Using a U.S. perspective the concept of the bilateral air agreement is…

Abstract

This chapter examines the unique regulatory environment that trans-border air carriers work within. Using a U.S. perspective the concept of the bilateral air agreement is outlined and discussed. These agreements form the basis for how two countries decide to share their airspaces among their air carriers. The trend has been toward more liberal approaches. To explain this trend the concepts of the Freedoms of the Air and Open Skies are discussed. Other liberalization programs are also discussed; specifically, co-terminalization and cabotage. Finally, the air cargo transfer operations at Ted Stevens Anchorage International Airport are used as an example to highlight a rare example of unilateral liberalization on the part of the United States.

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The Economics of International Airline Transport
Type: Book
ISBN: 978-1-78350-639-2

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Book part
Publication date: 14 December 2018

Shinya Hanaoka

This chapter examines the issues of the low-cost carriers (LCCs) in Japan and their impact on the domestic and international aviation markets. “Genuine” LCCs, such as…

Abstract

This chapter examines the issues of the low-cost carriers (LCCs) in Japan and their impact on the domestic and international aviation markets. “Genuine” LCCs, such as Peach Aviation and Jetstar Japan, began their operations in 2012 to follow the new movement of low-cost and low-fare airlines, which are different from the “new emerging” airlines, such as Skymark and AIRDO that appeared in the late 1990s. We discuss the recent history of LCCs in Japan, the characteristics of each LCC, the competitiveness of the high-speed railway in the domestic market, the impact of open sky policies, and the contribution of inbound foreign visitors to the international passenger volume increase. As LCCs in Japan have recently begun operations, they can continue to play a significant role in the Japanese aviation market.

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Airline Economics in Asia
Type: Book
ISBN: 978-1-78754-566-3

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Book part
Publication date: 29 July 2019

Bruno S. Sergi, Elena G. Popkova, Aleksei V. Bogoviz and Julia V. Ragulina

This chapter analyzes the technological growth of the modern Russian economy through the prism of evaluating its effectiveness from the position of costs and profits. It…

Abstract

This chapter analyzes the technological growth of the modern Russian economy through the prism of evaluating its effectiveness from the position of costs and profits. It also determines the factors of this growth and develops recommendations for managing them in the interests of acceleration of rate and increase of effectiveness of technological growth of the modern Russian economy. While technological growth in Russia shows high effectiveness, the model of technological growth in Russia has its specifics, connected to the unconventional influence of a standard set of the factors on technological growth. The influence of the factor of the number of organizations that implement R&D is insignificant, and the influence of the number of personnel involved with R&D, volume of private expenditures for R&D, and the number of used leading production technologies is negative (reverse). We offer recommendations for increasing the effectiveness of technological growth of the modern Russian economy, which are connected to increase of the volume of state expenditures for R&D (recommended volume – USD 35.09, its growth as compared to 2018 constitutes 191.76%) and increase of the number of developed leading production technologies (recommended number of these technologies – 2350.05, its growth as compared to 2018 constitutes 62.34%).

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Tech, Smart Cities, and Regional Development in Contemporary Russia
Type: Book
ISBN: 978-1-78973-881-0

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Book part
Publication date: 14 December 2018

Achim I. Czerny, Xiaowen Fu, Guowei Hua, Zheng Lei and Kun Wang

The five countries in Central Asia, namely Uzbekistan, Kazakhstan, Turkmenistan, Tajikistan, and Kyrgyzstan, are landlocked and therefore rely critically on aviation for…

Abstract

The five countries in Central Asia, namely Uzbekistan, Kazakhstan, Turkmenistan, Tajikistan, and Kyrgyzstan, are landlocked and therefore rely critically on aviation for passenger travel and express cargo logistics. However, despite substantial growth in the past decade, the aviation market in the region is still not realizing its full potential. This chapter reviews the development status of the international air travel market from Central Asia, with an aim of identifying the key barriers for industrial development and growth, and possible remedies to address these challenges. Overall, our study suggests that international market growth from the region is significantly influenced by historical patterns and political ties with Russia. Whereas markets linking selected countries such as Turkey and the UAE have experienced substantial growth, further liberalization is needed for the region to achieve better connectivity with major trade partners and aviation markets.

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Airline Economics in Asia
Type: Book
ISBN: 978-1-78754-566-3

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Article
Publication date: 13 November 2020

John Maisch, Mihai Nica and Jeremy David Oller

This study aims to examine whether the introduction of wine or regular strength beer (B) sales in Tennessee grocery stores significantly increased the number of alcoholic…

Abstract

Purpose

This study aims to examine whether the introduction of wine or regular strength beer (B) sales in Tennessee grocery stores significantly increased the number of alcoholic beverages (AB) consumed or excise taxes collected in the state.

Design/methodology/approach

This study uses both a time series and a model-based approach to assess if a significant change in alcoholic beverage excise tax collections occurred after the natural experiment. The study evaluates monthly tax collections from B, mixed drinks and AB between January 1968 and September 2018 published by the Tennessee Department of Revenue.

Findings

The findings suggest that neither alcoholic beverage consumption nor excise taxes collected increased substantially in Tennessee as a result of the introduction of wine and regular strength B in grocery stores. It is likely, however, that some changes inside the industry were significant.

Originality/value

This study assists policymakers and analysts in determining whether allowing the sale of wine and regular strength B in grocery stores will have a substantial impact on the total amount of AB consumed or excise taxes collected by the jurisdiction.

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Article
Publication date: 28 May 2020

Gonzalo Ruiz Díaz

The purpose of this paper is to assess the determinants of the early termination of infrastructure projects implemented under public–private partnerships (PPP)…

Abstract

Purpose

The purpose of this paper is to assess the determinants of the early termination of infrastructure projects implemented under public–private partnerships (PPP), concessions or privately managed divested assets.

Design/methodology/approach

Cross-section and duration model estimations were applied to a sample of 2,655 infrastructure projects implemented in Latin America and the Caribbean for the period 1993–2017. Estimation techniques consist of a logistic model and cox proportional hazards model (CPHM) applied to alternative specifications, including diverse causal factors.

Findings

Evidence is found that early termination of infrastructure projects is determined by intrinsic and extrinsic factors. Among the intrinsic factors, the main characteristics of projects that increase the likelihood of failure are the size or scale of the project, the sector in which the project is developed (transport and water and sanitation) and being investments in divested assets. Extrinsic factors that showed a negative impact on the risk of early termination are good regulatory quality and domestic macroeconomic stability. Likewise, external real and financial shocks also contribute importantly to explain the likelihood of early termination of infrastructure projects.

Practical implications

The results reveal that particular care must be put in design and supervision of large-scale projects, either in transport or water and sanitation. As well, risks associated with external shocks must be explicitly acknowledged in project design, with appropriate remedies and safeguards. The prevalence of relatively high rates of early termination in projects in divested assets in contrast with PPP suggests the importance of introducing simpler way out mechanisms for concessionaires. Finally, the results show the key importance of institutional factors like regulatory quality in determining project failure on economic performance of infrastructure projects.

Originality/value

In contrast to the previous literature, the analysis shows the decisive role played by financial external factors and institutional factors of Latin American and Caribbean countries in early termination of private participation in infrastructure projects. As well, the finding of a higher likelihood of failure in projects that involve investments in divested assets versus concession or PPP suggests the need of investigate further the tradeoffs regarding the balance that must exist among guarantees offered to investors in infrastructure projects and the need to keep contractual decisions in line with market signals.

Details

International Journal of Managing Projects in Business, vol. 13 no. 6
Type: Research Article
ISSN: 1753-8378

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Article
Publication date: 14 May 2018

Korbinian von Blanckenburg

This paper is concerned with the current decision of the European Commission regarding Google’s comparison shopping service (Google Shopping). In 2017, the Commission has…

Abstract

Purpose

This paper is concerned with the current decision of the European Commission regarding Google’s comparison shopping service (Google Shopping). In 2017, the Commission has fined Google €2.42 billion for abusing its dominant position as a search engine by giving illegal advantage to Google Shopping. Consequently, Google has to stop its illegal conduct. In particular, the decision requires Google to treat rival comparison shopping services and its own service equally. The purpose of this paper is to analyse the decision from a perspective of two-sided markets. Google Shopping is an integrated service of Google Search and acts as an intermediary between companies, offerings products in the internet and people searching for products in the internet. This complies with the typical conditions of a two-sided market. From the perspective of sellers of goods and services in Europe, Google may be seen as a gatekeeper to the potential customers and thus as an essential facility. In the light of the current decision, this paper provides a possible regulation alternative. It is shown that Google Shopping represents a typical club good, so that welfare-optimising rules must be adhered to. In this context, it should be noted that in the current Google Shopping search results, artificial rivalry is created among sellers so as to ensure maximum willingness to pay for a top listing. The solution proposed in this paper entails a summary score list of all sellers of a particular product, for which a turnover-dependent contribution should be required, instead of a reduced score list, where positions are sold by auctions.

Design/methodology/approach

This paper uses methods of two-sided markets and public good theory.

Findings

It is shown that Google Shopping represents a typical club good, so that welfare-optimising rules must be adhered to. In this context, it should be noted that in the current Google Shopping search results, artificial rivalry is created among sellers so as to ensure maximum willingness to pay for a top listing. The solution proposed in this paper entails a summary score list of all sellers of a particular product, for which a turnover-dependent contribution should be required, instead of a reduced score list, where positions are sold by auctions.

Originality/value

To the best of the author’s knowledge, it is the very first paper about the decision of the European Union (06/2017) concerning Google Shopping.

Details

Digital Policy, Regulation and Governance, vol. 20 no. 3
Type: Research Article
ISSN: 2398-5038

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Article
Publication date: 12 March 2018

Colleen E. Haight and Nikolai G. Wenzel

Subsequent to the First World War, the French Government regulated the Champagne industry, and locked the status of protected (and excluded) grapes into the new…

Abstract

Purpose

Subsequent to the First World War, the French Government regulated the Champagne industry, and locked the status of protected (and excluded) grapes into the new Appellation d’Origine Contrôlée system, forever altering the incentives and output of wine producers. The paper aims to discuss these issues.

Design/methodology/approach

As a result, some indigenous varietals have disappeared entirely from the region – and a handful remain only in the vineyards and bottles of a few bold entrepreneurs, constituting less than 1 percent of Champagne production.

Findings

The authors assess several traditional explanations (from taste and preferences to agricultural resilience)-and dismiss them as unconvincing. Instead, the authors adopt a public choice framework of regulatory capture to explain the puzzle of thwarted entrepreneurship and consumer choice.

Originality/value

This paper is original.

Details

Journal of Entrepreneurship and Public Policy, vol. 7 no. 1
Type: Research Article
ISSN: 2045-2101

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