As big tech companies are entering new industrial sectors, an open question concerns the drivers of their expansionary strategies. This paper proposes that these currently sectors based on data-driven intellectual monopoly power, thereby complementing preliminary answer provided by political economy research which has argued expansion is driven infrastructural power. approach developed through ...

Leapfrogging innovation competition through the process of creative destruction encourages the innovation in product and process that lengthens and improves lives. Schumpeter’s process of creative destruction emphasizes dynamic innovation competition, as contrasted with the standard model of static price competition. The ‘big-is-better’ account of creative destruction claimed, in addition, that...

This paper evaluates the impact that investigation and regulation of the UK petrol industry has had on the profitability of the companies. Using a gross margin for petrol, we estimate a series of variable parameter autoregressive processes. The results demonstrate that the 1979 Monopolies and Mergers Commission investigation into the industry, caused a long-term decline in profit margins in the...

This paper examines airline competition through an empirical specification of a demand and pricing equation system. The system is estimated for the Spanish airline market using a simultaneous procedure. The suitability of the Cournot assumption is tested in a competitive scenario characterized by an asymmetric oligopoly with capacity constraints. In addition, the degree of density economies is ...

Mongolia’s mass privatization program was implanted in a country that lacked the very basic institutions of capitalism. This paper examines the effects of competition and ownership on the efficiency of the newly privatized enterprises, using a representative sample of enterprises and controlling for possible selection biases. Competition has quantitatively large effects; perfectly competitive f...

More than one hundred and thirty countries or jurisdictions now have laws that seek to safeguard and foster market competition. At a minimum, such competition laws prohibit agreements among supposed competitors to fix prices, divide markets, or in other ways avoid or undermine market competition. Often, these laws go much further. Many additionally seek to constrain the exercise of market power...

This paper analyzes the role of seller-induced shortage as a signal of quality for a monopoly firm. Unlike dissipative advertising, the cost of inducing shortage is different for different quality types. It is shown that under certain conditions, a high-quality monopoly firm (of a new indivisible product) that signals quality by properly setting price and inducing shortage makes more profit tha...

Quality of service is of major economic significance in natural monopoly infrastructure industries. In this paper we present an efficiency analysis of electricity distribution networks from seven European countries. We apply the stochastic frontier analysis (SFA) method on multi-output translog input distance function models to estimate cost efficiency and scale economies. We show that introduc...

In this study we investigate the impact of competition on markets for non-durable goods where intertemporal price discrimination is possible. We develop a simple model of different potential scenarios for intertemporal price discrimination and implement it in a laboratory experiment. We compare the outcomes in monopolies and duopolies. Surprisingly, we find that competition does not necessarily...

If Adam Smith were asked about transitioning and developing economies today, one may infer, he might suggest introducing small, yet constant, opportunities for wealth accumulation, avoiding the sudden accumulation of riches. Good institutions and the moral rules often needed to complywith them are more likely to be disregarded if there are large, suddenmaterial gains, such as new wealth...