Study on methods to analyse the impact of state aid on competition

One of the potential benefits of an economic approach to State aid control is to make relationships between the costs and the benefits of State aid more transparent and, by doing so, to provide guidance on how to focus State aid control efforts on those areas where the damage of State aid is the greatest. Where markets fail to deliver efficient outcomes, Government intervention, including the provision of State aid, can improve welfare. This is an accepted result in the economic literature. Many national or supra-national bodies do not provide a mechanism to monitor and discipline the State aid provided by its members. Indeed, the control of State aid in the European Union stands out.state aid, government intervention, market failure, policy evaluation, Nitsche, Heidhues

Incentives to grow: multimarket firms and predation

"Network industries with low sunk costs have been popular examples for the theory of contestable markets and spatial competition models. We argue that, due to the multimarket nature of operations, theories of predation are more relevant to explain strategic behaviour. Building on well established reputation models our contribution is threefold. First, we use a more realistic sequencing of the game and strengthen the entry deterrence result. Second, we show that rational multimarket firms may use (the threat of) predatory entry to expand. Third, we allow strategic interaction of two multimarket firms and find that multimarket firms do not attack each other." (author's abstract)"Netzwerkindustrien mit geringen versunkenen Kosten dienten häufig als Anwendungsfelder für die Theorie der bestreitbaren Märkte und für Modelle des räumlichen Wettbewerbs. In der vorliegenden Arbeit wird argumentiert, daß aufgrund der Multimarktnatur dieser Branchen Theorien des Verdrängungsverhaltens eine relevantere Erklärung des strategischen Verhaltens liefern. Auf der Basis der etablierten Reputationsmodelle werden drei Neuerungen entwickelt. Erstens wird eine Spielsequenz eingeführt, die nicht nur realistischer ist als die herkömmliche Modellierung, sondern auch zu einer plausibleren Prognose führt: Verhinderung von Markteintritt in sämtlichen Märkten. Zweitens wird gezeigt, daß rationale Multimarktunternehmen die Drohung eines Markteintritts mit anschließender Verdrängung des alteingesessenen 'Mittelständlers' (Einmarktunternehmens) im Rahmen einer Expansionsstrategie glaubhaft nutzen können. Schließlich wird, drittens, die strategische Interaktion von zwei Multimarktunternehmen untersucht. Es zeigt sich, daß sie auf gegenseitigen 'Angriff' verzichten und nicht in einen Markt des jeweils anderen Multimarkt-Wettbewerbers eindringen." (Autorenreferat

On the Effectiveness of Anit-Predation Rules

Current anti-predation rules are designed to detect and prevent actions that are only taken to drive out a rival. We evaluate the performance of these rules in a simple entry game. We find that the rules used by competition authorities fail to encourage sustained competition in the market. Moreover, despite the rules an inefficient incumbent cannot be replaced by a more efficient entrant unless the difference in efficiency is extreme. One reason for these failures is that incumbents choose a strategic response to the legal environment. Large incumbents, for instance, crowd the product space. This is detrimental to welfare and consumer surplus. ZUSAMMENFASSUNG - (Die Effektivität von Wettbewerbsregeln gegen Verdrängungspreisverhalten) Wettbewerbsbehörden stützen sich auf Wettbewerbsregeln, um Unternehmen an Handlungen zu hindern, die nur dann profitabel sind, wenn sie zum Marktaustritt des Rivalen führen. Der Autor analysiert die Effektivität dieser Regeln in einem einfachen Markteintrittsspiel und zeigt, daß die Regeln keinen dauerhaften Wettbewerb im Markt erzeugen. Darüber hinaus verfehlen die Regeln ein weiteres Ziel: auch bei perfekter Durchsetzung der Regeln kann ein effizienterer Marktneuling in einem Verdrängungskampf nicht gegen das alteingesessene Unternehmen gewinnen, es sei denn, die Effizienzunterschiede sind extrem. Ein Grund für dieses Scheitern ist, dass sich die alteingesessenen Unternehmen strategisch an die rechtlichen Rahmenbedingungen anpassen. Wenn ein Markteintritt von effizienteren Unternehmen droht, so entscheiden sie sich eher für eine Angebotserhöhung als den Markteintritt zu gestatten. In dem untersuchten Spiel mindert dies Wohlfahrt und Konsumtenrente.competition policy, entry

Merger Clusters during Economic Booms

Merger activity is intense during economic booms and subdued during recessions. This paper provides a non-financial explanation for this observable pattern. We construct a model in which the target-by setting the takeover price-screens the acquirer on his (expected) ability to realize synergy gains when merging. In an economic boom, it is less profitable to sort out relatively "bad fit" acquirers, leading to a hike in merger activity. Although positive economic shocks produce expected gains at the time of merging, these mergers turn out to be less efficient in the long term-a finding that is broadly consistent with the existing empirical evidence. Furthermore, again because of the absence of boom-time screening, the more efficient acquirers earn higher merger profits during "merger waves" than outside of waves, which is also in line with empirical evidence. ZUSAMMENFASSUNG - (Fusionscluster in Boomphasen) In Zeiten wirtschaftlicher Hochkonjunktur ist die Zahl der Firmenzusammenschlüsse hoch, in Rezessionszeiten eher niedrig. Dieser Aufsatz gibt eine Erklärung für diese Beobachtung, die nicht auf rein finanzwirtschaftlichen Faktoren beruht. Im vorgestellten Modell ha das Unternehmen, welches übernommen wird, die Möglichkeit, den Übernahmepreis festzulegen und kann damit auch die übernehmende Firma auswählen. Das Auswahlkriterium sind die erwarteten Synergiegewinne im Falle einer Fusion, die für eine gute Passung der beiden fusionierenden Unternehmen sprechen. In Phasen der Hochkonjunktur ist es allerdings für Unternehmen generell interessant, zu fusionieren, und es wird relativ weniger profitabel, großen Auswahlaufwand zu treiben, um schlecht passende Fusionspartner auszusortieren und eventuell gar keinen Fusionspartner zu finden. Daher kommt es in diesen Zeiten zu mehr Fusionen als in anderen Konjunkturphasen, die als Fusionswellen bezeichnet werden. Zum Zeitpunkt der Fusion lassen sich auch die erwarteten Gewinne durch die günstige ökonomische Gesamtsituation realisieren. Im weiteren Verlauf stellen sich jedoch solche Fusionen mit schlecht passenden Partnern als wenig effizient heraus-was auch empirische Analysen bestätigt haben. Darüber hinaus zeigt das Modell, dass-wiederum wegen der fehlenden Auswahlprozedur in Boomphasen-die effizienteren Fusionspartner während Fusionswellen höhere Gewinne machen als außerhalb von Fusionswellen. Dies ist zuvor bereits empirisch beobachtet worden.Mergers, Merger Waves, Screening

Screening and Merger Activity

In our paper targets, by setting a reserve price, screen acquirers on their (expected) ability to generate merger-speci?c synergies. Both empirical evidence and many common merger models suggest that the di?erence between high- and low-synergy mergers becomes smaller during booms. This implies that the target’s opportunity cost for sorting out relatively less ?tting acquirers increases and, hence, targets screen less tightly during booms, which leads to a hike in merger activity. Our screening mechanism not only predicts that merger activity is intense during economic booms and subdued during recessions but is also consistent with other stylized facts about takeovers and generates novel testable predictions.Takeovers; Merger Waves; Defense Tactics; Screening

Which factors influence the psychological distress among relatives of patients with chronic functional psychoses? An exploratory study in a community mental health care setting

Aim: This research aimed to assess the contribution of the five core areas of the transactional stress model to the relatives' psychological distress (PD) when informally taking care of patients with functional psychoses treated in community mental health care. Subjects and methods: Cross-sectional data from 163 relatives were collected in interviews, while data on 158 patients were collected by analyzing clinical charts. The following areas were assessed: socio-demographic and illness-related features of the patients, socio-demographic features of the relatives (environmental variables); sense of coherence, mastery, causal attributions and opinions of relatives about mental disorders (person variables); interpersonal problems with the patients as well as the assessment of their symptoms by the relatives themselves (primary appraisal); support received, critical life events and burden of relatives caused by their own illnesses (secondary appraisal); control behavior and efforts of relatives to engage the patients in activities (coping). PD was assessed with the 12-item version of the General Health Questionnaire. Bi-variate correlation analysis and a multiple linear regression model were the main test statistical approaches. Results: Correlation analysis showed that differences between diagnostic groups referred to primary and secondary appraisal processes, in particular. Results of the statistical model provided evidence for the importance of primary appraisal and person variables for influencing PD, and for the lack of importance of coping and environmental variables. Conclusion: The study enhanced the validity of the transactional stress model to demonstrate the influence of salutogenetic concepts such as sense of coherence

Merger clusters during economic booms

"In Zeiten wirtschaftlicher Hochkonjunktur ist die Zahl der Firmenzusammenschlüsse hoch, in Rezessionszeiten eher niedrig. Dieser Aufsatz gibt eine Erklärung für diese Beobachtung, die nicht auf rein finanzwirtschaftlichen Faktoren beruht. Im vorgestellten Modell ha das Unternehmen, welches übernommen wird, die Möglichkeit, den Übernahmepreis festzulegen und kann damit auch die übernehmende Firma auswählen. Das Auswahlkriterium sind die erwarteten Synergiegewinne im Falle einer Fusion, die für eine gute Passung der beiden fusionierenden Unternehmen sprechen. In Phasen der Hochkonjunktur ist es allerdings für Unternehmen generell interessant, zu fusionieren, und es wird relativ weniger profitabel, großen Auswahlaufwand zu treiben, um schlecht passende Fusionspartner auszusortieren und eventuell gar keinen Fusionspartner zu finden. Daher kommt es in diesen Zeiten zu mehr Fusionen als in anderen Konjunkturphasen, die als Fusionswellen bezeichnet werden. Zum Zeitpunkt der Fusion lassen sich auch die erwarteten Gewinne durch die günstige ökonomische Gesamtsituation realisieren. Im weiteren Verlauf stellen sich jedoch solche Fusionen mit schlecht passenden Partnern als wenig effizient heraus – was auch empirische Analysen bestätigt haben. Darüber hinaus zeigt das Modell, dass – wiederum wegen der fehlenden Auswahlprozedur in Boomphasen – die effizienteren Fusionspartner während Fusionswellen höhere Gewinne machen als außerhalb von Fusionswellen. Dies ist zuvor bereits empirisch beobachtet worden." (Autorenreferat)"Merger activity is intense during economic booms and subdued during recessions. This paper provides a non-financial explanation for this observable pattern. We construct a model in which the target—by setting the takeover price—screens the acquirer on his (expected) ability to realize synergy gains when merging. In an economic boom, it is less profitable to sort out relatively 'bad fit' acquirers, leading to a hike in merger activity. Although positive economic shocks produce expected gains at the time of merging, these mergers turn out to be less efficient in the long term—a finding that is broadly consistent with the existing empirical evidence. Furthermore, again because of the absence of boom-time screening, the more efficient acquirers earn higher merger profits during 'merger waves' than outside of waves, which is also in line with empirical evidence." (author's abstract

Dynamic characterization of multi-component sensors for force and moment

An improved set-up for the characterization of multi-component sensors for force and moment is presented. It aims at calibrating such sensors under continuous sinusoidal excitation. Special focus is put on the design of load masses and adapting elements to activate uniaxial force and moment components where possible. To identify the motion and acceleration of the load mass with 6 degrees of freedom, a photogrammetric measurement system is implemented in the existing set-up. Using the set-up described, different experiments are performed to analyse a commercial multi-component sensor and perform a parameter identification for its force components

Pre-crash scenarios at road junctions: a clustering method for car crash data

Given the recent advancements in autonomous driving functions, one of the main challenges is safe and efficient operation in complex traffic situations such as road junctions. There is a need for comprehensive testing, either in virtual simulation environments or on real-world test tracks. This paper presents a novel data analysis method including the preparation, analysis and visualization of car crash data, to identify the critical pre-crash scenarios at T- and four-legged junctions as a basis for testing the safety of automated driving systems. The presented method employs k-medoids to cluster historical junction crash data into distinct partitions and then applies the association rules algorithm to each cluster to specify the driving scenarios in more detail. The dataset used consists of 1056 junction crashes in the UK, which were exported from the in-depth “On-the-Spot” database. The study resulted in thirteen crash clusters for T-junctions, and six crash clusters for crossroads. Association rules revealed common crash characteristics, which were the basis for the scenario descriptions. The results support existing findings on road junction accidents and provide benchmark situations for safety performance tests in order to reduce the possible number parameter combinations

Proteome analysis of vaccinia virus IHD-W-infected HEK 293 cells with 2-dimensional gel electrophoresis and MALDI-PSD-TOF MS of on solid phase support N-terminally sulfonated peptides

<p>Abstract</p> <p>Background</p> <p>Despite the successful eradication of smallpox by the WHO-led vaccination programme, pox virus infections remain a considerable health threat. The possible use of smallpox as a bioterrorism agent as well as the continuous occurrence of zoonotic pox virus infections document the relevance to deepen the understanding for virus host interactions. Since the permissiveness of pox infections is independent of hosts surface receptors, but correlates with the ability of the virus to infiltrate the antiviral host response, it directly depends on the hosts proteome set. In this report the proteome of HEK293 cells infected with Vaccinia Virus strain IHD-W was analyzed by 2-dimensional gel electrophoresis and MALDI-PSD-TOF MS in a bottom-up approach.</p> <p>Results</p> <p>The cellular and viral proteomes of VACV IHD-W infected HEK293 cells, UV-inactivated VACV IHD-W-treated as well as non-infected cells were compared. Derivatization of peptides with 4-sulfophenyl isothiocyanate (SPITC) carried out on ZipTipμ-C18 columns enabled protein identification via the peptides' primary sequence, providing improved s/n ratios as well as signal intensities of the PSD spectra. The expression of more than 24 human proteins was modulated by the viral infection. Effects of UV-inactivated and infectious viruses on the hosts' proteome concerning energy metabolism and proteins associated with gene expression and protein-biosynthesis were quite similar. These effects might therefore be attributed to virus entry and virion proteins. However, the modulation of proteins involved in apoptosis was clearly correlated to infectious viruses.</p> <p>Conclusions</p> <p>The proteome analysis of infected cells provides insight into apoptosis modulation, regulation of cellular gene expression and the regulation of energy metabolism. The confidence of protein identifications was clearly improved by the peptides' derivatization with SPITC on a solid phase support. Some of the identified proteins have not been described in the context of poxvirus infections before and need to be further characterised to identify their meaning for apoptosis modulation and pathogenesis.</p