The microeconomics principles course focuses on competitive markets far more than any other market structure. This paper considers the possible reasons. We suggest that this focus might be because: (1) competition is descriptive of many important real world markets (2) competition is viewed as a useful approximation to a wide array of real world markets that are not strictly competitive; (3) co...

This paper proposes a computable stochastic equilibrium model to represent the possible competition between Russia and China on the international market of carbon emissions permits. The model includes a representation of the uncertainty concerning the date of entry of developing countries (e.g. China) on this market in the form of an event tree. Assuming that this date of entry is an uncontroll...

We investigate how price ceilings and floors affect outcomes in continuous time, double auction markets with discrete goods and multiple qualities. When price controls exist, the existence of competitive equilibria (the solution concept of classical market theory) is no longer guaranteed; hence, we investigate the nature of non-price competition and how markets might evolve in its presence. We ...

Market segmentation is one of the most widely accepted concepts in marketing. Its fundamental thesis is that, to achieve competitive advantage and, thereby, superior financial performance, firms should (1) identify segments of demand, (2) target specific segments, and (3) develop specific marketing “mixes” for each targeted market segment. However, understanding the competitive circumstance in ...

The Market in Financial Instruments Directive (MiFID) aims to increase competition and to foster client protection in the European …nancial market. Among other provisions, it abolishes the concentration rule and challenges the market power of existing trading venues. The directive introduces venue competition in order to achieve better execution and ultimately lower trading costs. In this paper...

We examine the interaction between trade in goods and market power in domestic trade and distribution sectors. Theory suggests a linkage between service-sector competition and goods trade, one supported by econometrics involving import patterns of 21 OECD countries. This points to significant linkages between effective market-access conditions for goods and the structure of the service sector. ...

This paper focuses on the role of competition, defined broadly to encompass both firm-level and internation competition, in the development of telecommunications infrastructure. The context of the paper is Singapore's telecommunications industry. This paper attributes some of the development of Singapore's telecommunications services and infrastructure to actual and potential competition at the...

This paper studies (1) whether, from a welfare point of view, oligopolistic competition leads to too few or too many products in a market, and (2) how a change in competition affects the number and the composition of product offerings. We address these two questions in the context of the U.S. smartphone market. Our findings show that this market contains too few products and that a reduction in...

This paper studies the effect of credit market competition, measured by the bargaining power of banks, on the agency costs of debt finance. The threshold of obtaining loan finance is shown to be independent of the relative bargaining power of the financier, while intensified credit market competition leads to lower lending rates and investment return distributions with lower, but less risky ret...