Essays on market structure and competition

My thesis consists of two relatively independent topics. In the first topic I empirically inves- tigate the factors that determine the presence of the independent coffee shops in the market of Central London. In the second topic I present a theory of cartel detection. The common feature of these topics is that I investigate the demand side effects on market structure and its impact on competition. To be more specific, in the first topic I build a simple theoretical model of product differentiation in adjacent markets, based on Mazzeo (2002). For the empirical estimation I have constructed a unique dataset of coffee shops in Central London. I further manage to identify differences on demand characteristics across markets by utilizing data on people’s mo- bility from the tube stations and provide evidence for the existence of product differentiation. It is found that residential areas with high employment, areas with small business density and leisure areas increase the profitability of the independent coffee shops. A counterfactual analysis is also presented. In the second topic I investigate the cartel’s strategies and likelihood of collusion when the buyers of the cartel are able to report its existence to the anti-trust authority. I char- acterize the cartel’s optimal behavior when the buyers are actively monitoring the cartel’s members and are able to report a cartel to an anti-trust authority1. I present a simple static model and I show that the likelihood of collusion increases as the willingness of the buyers to report increases (cost of reporting decreases). Furthermore, it is shown that it is optimal for an anti-trust authority to decrease the cost of reporting (a trade-off between price reductions in existing cartels and increased likelihood of cartel formation is identified). Finally, alterna- tive cartel strategies are also explored in this topic. As for the last point, I show that the threat of exclusion (foreclosure) and price discrimination are robust strategies that prevent buyers from reporting

Algorithmic Pricing:The Current State of Affairs from a Law and Economics Perspective

The rise of algorithmic pricing has transformed perfect price discrimination from a theoretical concept into a real possibility. Through self-learning pricingalgorithms, a strategy can be developed that approximates consumers’ reservation prices with ever-improving accuracy. This paper analyzes algorithmic pricing from a law and economics perspective to identify the efficiency and equity effects that the practice could cause and determine to which extent it is regulated under the current legal framework. This paper finds that under competitive market conditions, algorithmic pricing could be welcomed from an efficiency perspective, but from an equity and ethical perspective serious concerns need to be raised. If these concerns are to be taken seriously, the legal framework provides only a partially functional approach to address algorithmic pricing. Additional appropriate remedies are, therefore, needed to protect consumers adequately and effectively against exploitation that reduces their welfare

Downstream merger with oligopolistic input suppliers

We examine how a downstream merger affects input prices and, in turn, the profitability of such a merger under Cournot competition with differentiated products. Input suppliers can be interpreted as ordinary upstream firms, or trade unions organising workers. If the input suppliers are plant-specific, we find that a merger is more profitable than in a corresponding model with exogenous input prices. In contrast to the received literature, we find that it can be more profitable to take part in a merger than being an outsider. For firm-specific input suppliers, on the other hand, results are reversed. We apply our model to endogenous merger formation in an international oligopoly, and show that the equilibrium market structure is likely to be characterised by cross-border merger. -- Wir untersuchen, inwiefern nachgelagerte Fusionen Inputpreise erhöhen und wie diese wiederum die Fusionen bei Cournot-Wettbewerb mit unterschiedlichen Produkten beeinflussen. Inputanbieter können als normale vorgelagerte Firmen oder als Gewerkschaften, die Arbeiter organisieren interpretiert werden. Wenn die Inputanbieter werksspezifisch sind, finden wir, daß eine Fusion profitabler ist, als in einem vergleichbaren Modell mit exogenen Inputpreisen. Im Gegensatz zur herkömmlichen Literatur finden wir, daß es profitabler sein kann an einer Fusion teilzunehmen, denn ein Außenstehender zu sein. Für firmenspezifische Inputanbieter andererseits, ist das Ergebnis umgekehrt. Wir wenden unser Modell auf endogene Fusionsformierung in einem internationalen Oligopol an und zeigen, daß die Gleichgewichtsmarktstruktur wahrscheinlich durch grenzüberschreitende Fusionen gekennzeichnet ist.merger profitability,input suppliers,trade unions,cross-border merger

Report of the Academic Board Working Group on Racism and Prejudice

A Special Meeting of Academic Board was held on 12 December 2019 in response to a requisition calling for the establishment of a Working Group ‘to advise on racism and prejudice that would investigate the proposed adoption of the IHRA definition of antisemitism and its consistency with/inconsistency with Academic Freedom at UCL’. Academic Board resolved at that meeting to set up a Working Group ‘to report to the Board so that it may advise Council on the matter of group-specific definitions of racism.’ Elections to the Working Group were accordingly held and the Working Group began its work in February 2020

Innovation in the European chemical industry

Firms in the European chemical industry have been among the most successful firms world wide. However, they have had to undertake severe restucturing in order to maintain their market position. These efforts focused in particular on strengthening their innovative capability as product and process innovation have become the most decisive factors in global competition. In order to improve the innovative conditions, the European Commission has supported the Community Innovation Survey (CIS). 1992/1993 was the first time that large-scale harmonised innovation surveys were carried out in all Member States of the European Union. This study uses the CIS micro data from nearly 2000 European chemical firms. This study focuses on the identification of innovative trends within the chemical industry between 1984 and 1993. Using data from annual reports of nine selected European stock companies, the study identifies those areas of the chemical industry currently having the highest innovative potential. Three speciality categories are identified as having the highest number of innovations during this ten year period: chemicals, paints/varnishes, and plastics. -- Obwohl viele europäische Unternehmen der chemischen Industrie in den vergangenen Jahrzehnten zu den erfolgreichsten in der Welt zählten, mußten sie sich Anfang der neunziger Jahre einem gravierenden Strukturwandel unterziehen, um ihre Position behaupten zu können. Die Fähigkeit der Unternehmen, Innovationen hervorzubringen, stand und steht dabei im Mittelpunkt. Mit dem Ziel, die Rahmenbedingungen für Innovationen zu verbessern, führte die EU-Kommission 1993 eine europaweite Innovationserhebung, den Community Innovation Survey (CIS) durch. In dieser Studie wurden die anonymisierten Antworten von nahezu 2000 Unternehmen der chemischen Industrie analysiert. Um Innovationstrends aufzuzeigen zu können, wurden darüber hinaus Geschäftsberichte von neun großen europäischen Chemieunternehmen ausgewertet. So wurden die Sparten Spezialitäten, Farben/Lacke und Kunststoffe als diejenigen Sparten identifiziert, die im Untersuchungszeitraum (1984-1993) die meisten Innovationen aufwiesen.

Downstream merger with oligopolistic input suppliers

"We examine how a downstream merger affects input prices and, in turn, the profitability of such a merger under Cournot competition with differentiated products. Input suppliers can be interpreted as ordinary upstream firms, or trade unions organising workers. If the input suppliers are plant-specific, we find that a merger is more profitable than in a corresponding model with exogenous input prices. In contrast to the received literature, we find that it can be more profitable to take part in a merger than being an outsider. For firm-specific input suppliers, on the other hand, results are reversed. We apply our model to endogenous merger formation in an international oligopoly, and show that the equilibrium market structure is likely to be characterised by cross-border merger." (author's abstract)"Die Autoren untersuchen, inwiefern nachgelagerte Fusionen Inputpreise erhöhen und wie diese wiederum die Fusionen bei Cournot-Wettbewerb mit unterschiedlichen Produkten beeinflussen. Inputanbieter können als normale vorgelagerte Firmen oder als Gewerkschaften, die Arbeiter organisieren interpretiert werden. Wenn die Inputanbieter werksspezifisch sind, finden wir, daß eine Fusion profitabler ist, als in einem vergleichbaren Modell mit exogenen Inputpreisen. Im Gegensatz zur herkömmlichen Literatur finden die Autoren, daß es profitabler sein kann, an einer Fusion teilzunehmen, denn ein Außenstehender zu sein. Für firmenspezifische Inputanbieter andererseits, ist das Ergebnis umgekehrt. Die Autoren wenden ihr Modell auf endogene Fusionsformierung in einem internationalen Oligopol an und zeigen, daß die Gleichgewichtsmarktstruktur wahrscheinlich durch grenzüberschreitende Fusionen gekennzeichnet ist." (Autorenreferat

L'indemnisation des victimes de harcèlement sexuel au Québec

L'auteure étudie en un premier temps les différents recours offerts aux victimes de harcèlement sexuel au Québec et les avantages qu’elles peuvent en tirer. Elle discute ensuite des poursuites en libelle diffamatoire intentées contre ces victimes qui sont parfois utilisées en guise de représailles aux plaintes de harcèlement sexuel. De son analyse découle une critique des mesures de redressement octroyées aux victimes de harcèlement sexuel. L'analyse jurisprudentielle démontre que les montants accordés en matière de dommages moraux ne sont pas toujours adéquats pour indemniser pleinement les victimes de harcèlement sexuel. Il y a lieu de croire que les tribunaux devraient préciser mieux les facteurs utilisés pour quantifier les dommages moraux. L'octroi de mesures de redressement «proactives » pourrait peut-être aider davantage à remédier au problème du harcèlement sexuel en milieu de travail.The author studies different remedies available to victims of sexual harassment in Quebec and their advantages and disadvantages. She discusses the problem of actions for defamatory libel against victims of sexual harassment as a means of reprisal. Further, the author reviews the type and amount of damages awarded to victims of sexual harassment in Quebec decisions. The author concludes that the amounts awarded to victims of sexual harassment do not provide full compensation for the injuries caused by the harassment. She believes that tribunals should be more explicit and describe the factors used in quantifying moral damages. In order to fully deal with the problem of sexual harassment, tribunals should order pro-active measures against respondent employers and employees

Die Attraktivität von Handelsmarken-Käufern : eine empirische Analyse und strategische Empfehlungen zur Vermarktung von Handelsmarken

Im internationalen Vergleich ist der Marktanteil von Handelsmarken (bzw. Eigenmarken) im deutschen Lebensmitteleinzelhandel extrem hoch. Dies wird zwar stark durch den Erfolg des Discounters Aldi beeinflusst, doch auch im übrigen Einzelhandel weisen Handelsmarken zum Teil ein beträchtliches Wachstum auf. Dieser Trend wird sich aller Erwartung nach fortsetzen. Als Motiv des Handelmarkeneinsatzes wird häufig - neben dem Preiskampf gegen Discounter - die Profilierung der eigenen Geschäftsstelle genannt, die zur Stärkung der Kundenbindung führen soll. Aber sind Handelsmarkenkäufer tatsächlich geschäftstreuer? Dies ist eine von vielen Fragen, denen in der vorliegenden Studie nachgegangen wird. In dieser Untersuchung wird der deutsche Handelsmarkenkäufer anhand marketing-relevanter Merkmale analysiert. So lässt sich ein Eindruck gewinnen, ob Handelsmarkenkäufer aufgrund ihrer spezifischen Charakteristika ein attraktives Kundensegment darstellen. Hierzu werden Verbraucher auf Grundlage von Kassenzetteldaten - ergänzt durch eine schriftliche Befragung - zunächst in drei Gruppen mit unterschiedlicher Handelsmarken-Kaufintensität eingeteilt und anschießend mit einander verglichen. Die analysierten Größen umfassen u.a. die Qualitätsbeurteilung von Handelsmarken, die Treue gegenüber Marken und Einkaufsstätten, die Bedeutung von Preis und Qualität bei der Kaufentscheidung sowie die soziodemographischen Merkmale Alter, Geschlecht, Familiengröße, Bildung und Einkommen. Im Ergebnis kann ein sehr präzises und stimmiges Bild des deutschen Handelsmarkenkäufers gezeichnet werden. Hieraus werden strategische Empfehlungen zum Umgang mit Handelsmarken abgeleitet

Globalization and Labour in the Twenty-First Century

Globalisation has adversely affected working-class organisation and mobilisation; but international labour movement demobilisation is not necessarily an irreversible trend. Globalisation has prompted workers and their organisations to find new ways to mobilise. This book examines international labour movement opposition to globalisation. It chronicles and critically scrutinizes the emergence of distinctively new forms of labour movement organisation and mobilisation that constitute creative initiatives on the part of labour, which present capitalism with fresh challenges. The author identifies eight characteristics of globalisation that have proven problematic to workers and their organisations and describes and analyses how they have responded to these challenges since 1990 and especially in the past decade. In particular, it focuses attention on new types of labour movement organisation and mobilisation that are not simply defensive reactions but are offensive and innovative responses that compel corporations to behave more responsively and responsibly towards employees and society at large. This book will be of interest to students and scholars of globalisation, political economy, labour politics, economics, Marxism and sociology of work

Provision of affordable housing and access to opportunity in Victoria, Texas

textVictoria, Texas is a small city with a population of 62,592 according to the 2010 Census. Despite its size, Victoria does not have any form of zoning, which inhibits the ability of the City to control development and land use patterns. This lack of control may have negative effects on low-income communities and the location of affordable housing. This report considers the location of affordable housing throughout the city, analyzing the proximity of these housing developments to environmental hazards, such as industrial uses and floodplains, and access to areas of opportunity, such as transit routes, retail and grocery stores, and high-achieving schools. The purpose of this analysis is to determine if public actions (or inactions) and private development have resulted in an equitable or inequitable distribution of affordable housing, and to propose recommendations for addressing any inequities that may exist in the city of Victoria.Community and Regional Plannin