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on Economics of Strategic Management |
| By: | Arnoud W.A. Boot (Faculty of Economics & Econometrics, Universiteit van Amsterdam); Matej Marinc (University of Ljubljana) |
| Abstract: | We assess the influence of competition and capital regulation on the stability of the banking system. We particularly ask two questions: i) how does capital regulation affect (endogenous) entry; and ii) how do (exogenous) changes in the competitive environment affect bank monitoring choices and the effectiveness of capital regulation? Our approach deviates from the extant literature in that it recognizes the fixed costs associated with banks' monitoring technologies. These costs make market share and scale important for the banks' cost structures. Our most striking result is that increasing (costly) capital requirements can lead to more entry into banking, essentially by reducing the competitive strength of lower quality banks. We also show that competition improves the monitoring incentives of better quality banks and deteriorates the incentives of lower quality banks; and that precisely for those lower quality banks competition typically compromises the effectiveness of capital requirements. We generalize the analysis along a few dimensions, including an analysis of the effects of asymmetric competition, e.g. one country that opens up its banking system for competitors but not vice versa. |
| Keywords: | Banking; Capital regulation; Competition |
| JEL: | G21 L13 L50 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20060015&r=cse |
| By: | Christopher Palmberg; Pekka Ylä-Anttila |
| Keywords: | Finland, industrial policy, innovation systems, clusters, globalization |
| JEL: | O31 O38 |
| Date: | 2006–04–03 |
| URL: | http://d.repec.org/n?u=RePEc:rif:dpaper:973&r=cse |
| By: | Laura Abramovsky (Institute for Fiscal Studies); Rachel Griffith (Institute for Fiscal Studies) |
| Abstract: | This paper considers the impact that technology has on firms' choices over organisational form, in particular whether to produce inhouse or outsource and offshore services, and firms' decision over the location of activity. Technology reduces the transaction and adjustment costs of moving activity outside the firm and of carrying out at greater geographic distance. We find that more technology intensive firms purchase a greater amount of services on the market and purchase more offshore than less technologically intensive firms. |
| Keywords: | Outsourcing, offshoring, ICT, business services |
| JEL: | D21 F23 L23 |
| Date: | 2005–10 |
| URL: | http://d.repec.org/n?u=RePEc:ifs:ifsewp:05/22&r=cse |
| By: | Gustavo Crespi (University of Sussex, AIM and CeRiBA); Chiara Criscuolo (CEP, LSE, AIM and CeRiBA); Jonathan Haskel (Queen Mary, University of London) |
| Abstract: | We examine the relationships between productivity growth, IT investment and organisational change (Δ<i>O</i>) using UK firm panel data. Consistent with the small number of other micro studies we find (a) IT appears to have high returns in a growth accounting sense when Δ<i>O</i> is omitted; when Δ<i>O</i> is included the IT returns are greatly reduced, (b) IT and Δ<i>O</i> interact in their effect on productivity growth, (c) non-IT investment and Δ<i>O</i> do not interact in their effect on productivity growth. Some new findings are (a) Δ<i>O</i> is affected by competition and (b) we also find strong effects on the probability of introducing Δ<i>O</i> from ownership. US-owned firms are much more likely to introduce Δ<i>O</i> relative to foreign owned firms who are more likely still relative to UK firms. |
| Keywords: | Information technology, Productivity growth, Organisational change |
| JEL: | D24 E22 L22 O31 |
| Date: | 2006–04 |
| URL: | http://d.repec.org/n?u=RePEc:qmw:qmwecw:wp558&r=cse |
| By: | Philippe Gagnepain (Universidad Carlos III de Madrid); Pedro Pereira (Autoridade da Concorrência) |
| Keywords: | Mobile Telephony, Entry, Competition, Efficiency, Empirical Analysis |
| JEL: | L13 L43 L93 |
| Date: | 2005–02 |
| URL: | http://d.repec.org/n?u=RePEc:pca:wpaper:05&r=cse |
| By: | Peter Rowland |
| Abstract: | The study presented here looks at the Colombian corporate sector broken down by city. In particular, it studies the eight main cities of the country. It is an initial study, maybe the first of its kind, and it aims to act as a foundation for future research in the area. A database obtained from the Superintendencia de Sociedades is used for the analysis. Structural differences between the cities in 2003 are studied, as well as the development of the cities between 1996 and 2003. The study shows that the 100 largest firms in the country are almost exclusively located in the country’s four largest cities. Rather more surprisingly, it shows that small and medium-sized enterprises (SMEs) are generally concentrated to the country’s larger cities, and particularly to Bogotá, while many medium-sized and smaller cities completely lack SMEs. The study also shows that, in terms of aggregate sales, the cities ha ve developed very differently. |
| Date: | 2006–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:col:001043:002442&r=cse |
| By: | Weijters, B.; Schillewaert, N.; |
| Abstract: | Building on the e-Satisfaction model proposed by Szymanski and Hise (2000) and further validated by Evanschitzky, Iyer, Hesse, and Ahlert (2004), we develop an instrument to measure shopper satisfaction in online and offline retail contexts: the (R)E-Tail Satisfaction scale. Using data from an online (N=202) and an offline (N=441) grocery shopper sample, the instrument is shown to be fit for cross-channel evaluation of levels of satisfaction and its antecedents. We find full metric invariance (identical factor loadings), sufficient partial scalar invariance (identical item intercepts for at least two items per construct), as well as some interesting structural differences. Most notably, online shoppers evaluate the facets of retail satisfaction generally lower than do offline shoppers. |
| Date: | 2006–04–07 |
| URL: | http://d.repec.org/n?u=RePEc:vlg:vlgwps:2006-08&r=cse |
| By: | Pio Baake; Ulrich Kamecke |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp568&r=cse |
| By: | Jerry Hausman (Institute for Fiscal Studies and Massachussets Institute of Technology); Ephraim Leibtag |
| Abstract: | Consumers often benefit from increased competition in differentiated product settings. In previous research Hausman (1997a, 1997b, 1999, 2002) has estimated the increased consumer welfare from the introduction of new brand, e.g. Apple Cinnamon Cheerios, and new products, e.g. mobile telephones. In this paper we consider consumer benefits from increased competition in a differentiated product setting: the spread of nontraditional retail outlets. Non-traditional outlets, including supercenters, warehouse club stores, and mass merchandisers have grown in popularity and nearly doubled their share of consumer food-at-home expenditures from 1998 to 20033. Within this non-traditional retail group, supercenters have experienced the largest increase over this time period, but warehouse club stores and dollar stores have also experienced significant increases in their share of the consumer food dollar as U.S. consumers attempt to find the best combination of prices and services at their retailer of choice. |
| Date: | 2006–03 |
| URL: | http://d.repec.org/n?u=RePEc:ifs:cemmap:06/06&r=cse |
| By: | Avenel, E.; Favier, A.V.; Ma, S.; Mangematin V.; Rieu, C. |
| Abstract: | The paper investigates the linkages between characteristics of technologies and a firm’s knowledge base. Nanotechnologies have been defined as converging technologies that operate as nanoscale, and which require integration to fulfil their economic promises. The paper analyses the degree of convergence and the convergence mechanisms within a firm’s knowledge base. If convergence predominates as it has been claimed, nanotechnologies are not competence destroyers and the development is based on the exetension of the knowledge base of existing firms. Based on a worldwide database of nanofirms, the paper examines the influence of the characteristics of the technologies on the structure of the firm knowledge base. It argues that nano S&T patterns of development combine competence destroying activities and a critical role of research facilities and technological platforms. While the competence destroying characteristics of nanotechnologies give a premium to emerging companies, the role of research and production facilities stenghthens large incumbent competitive position and geographically polarises the emergence of small dedicated nanofimrs. |
| Keywords: | FIRM KNOWLEDGE BASE ; NANOTECHNOLOGY; COHERENCE SCOPE; SCIENCE REGIME; CONVERGING TECHNOLOGIES |
| JEL: | O31 O32 L22 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:gbl:wpaper:200602&r=cse |
| By: | Granier, L.; Trinquard, S. |
| Abstract: | This paper fills the gap in the theoretical literature concerning mergers between brand-name and generic laboratories in pharmaceutical markets. To prevent generic firms from increasing their market share, some brand-name furms produce generics themselves, called pseudo-generics, enabling them to set up barriers to entry. We develop this topic by considering the pseudo-generics production as a mergers.catalyst. We show, in a duopoly model with substitutable goods, in which a brand-name firm and a generic firm compete à la Cournot, that a brand-name company always has an incentive to purchase its competitor. The key insight of this paper is that the brand-name laboratory can increase its merger gain by producing pseudo-generics beforehand. In some cases, pseudo-generics would not otherwise be produced. |
| Keywords: | Mergers, Pharmaceutical Market, Pseudo-Generics. |
| JEL: | I11 L12 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:mop:lasrwp:2006.18&r=cse |
| By: | Duarte Brito (Universidade Nova de Lisboa); Pedro Pereira (Autoridade da Concorrência) |
| Abstract: | In this article we discuss the role of cable television networks and their ownership structure, in promoting competition in the local access market. An upgraded cable network can o¤er telecommunication services, and therefore can compete with the public switched telephone network. First, we show that the joint ownership of a local telephone network and a cable network, compared with separate ownership, may increase or decrease incentives to invest in upgrading the cable television network. Second, we argue that separate ownership of the two networks is important to promote competition in local access. Third, we perform the welfare analysis of the investment decision and the ownership structure. |
| Keywords: | Cable Networks, Local Access, Competition |
| JEL: | L43 L96 |
| Date: | 2006–02 |
| URL: | http://d.repec.org/n?u=RePEc:pca:wpaper:11&r=cse |
| By: | Avenel, E.; Corolleur, F.; Gauthier, C.; Rieu, C. |
| Abstract: | Based on an original dataset, we analyze empirically the determinants of firm growth in the French biotech industry during two periods, 1996-1999 and 1999-2002. We have two main results. First, Gibrat's law is violated. The growth of annual turnover is influenced by teh initial size of the firm. The effect is non-linear, negative for small firms. Second, location has a significant impact on growth. We use different sets of dummies to characterize location and different measures of firm growth. As a whole, our results point at Marseilles (and its region) and Nanterre (but not Paris and Evry) as favorable places for the growth of firms between 1999 and 2002. For the 1996-1999, the favorable places are Strasbourg (and Alsace) and Rh“ne-Alpes (Lyon/Grenoble). Our analysis thus suggests that the changes in the (notably legal) environment of French biotech firms that took place in 1999 had a drastic effect of the comparative advantages of locations for biotech firms. |
| Keywords: | BIOTECHNOLOGY; INDUSTRIAL CLUSTERING; FIRM GROWTH; FRANCE |
| JEL: | L25 L65 R30 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:gbl:wpaper:200503&r=cse |
| By: | Duarte Brito (Universidade Nova de Lisboa); Pedro Pereira (Autoridade da Concorrência) |
| Abstract: | In this paper, we discuss the role of cable television networks and their ownership structure in promoting competition in the local access market. First, we show that the dual ownership of a local telephone network and a cable network, compared with separate ownership, may increase or decrease incentives to invest in upgrading the cable television network. Second, we argue that separate ownership of the two networks is important to promote competition in local access. |
| Keywords: | Cable Networks, Local Access, Competition |
| JEL: | L43 L96 |
| Date: | 2005–04 |
| URL: | http://d.repec.org/n?u=RePEc:pca:wpaper:09&r=cse |
| By: | Giovanni Favero (Department of Economics, University Of Venice Cà Foscari) |
| Abstract: | This paper deals with the Benetton’s approach to advertising and with the changes in the image of the company since its foundation in 1965 up to the 2000s. Links among the evolution in promotional, distributional and productive strategy are discussed. |
| Keywords: | business strategy, image policy, franchising |
| JEL: | N84 M37 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:ven:wpaper:06_06&r=cse |
| By: | Santiago Urbiztondo (FIEL) |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:iel:doctra:84&r=cse |
| By: | Verónica Durán-Carbó; Charles ReVelle; Daniel Serra |
| Abstract: | In this paper we present a model that studies firm mergers in a spatial setting. A new model is formulated that addresses the issue of finding the number of branches that have to be eliminated by a firm after merging with another one, in order to maximize profits. The model is then applied to an example of bank mergers in the city of Barcelona. Finally, a variant of the formulation that introduces competition is presented together with some conclusions. |
| Keywords: | Mergers, facility location, spatial competition |
| JEL: | C61 J80 |
| Date: | 2006–03 |
| URL: | http://d.repec.org/n?u=RePEc:upf:upfgen:960&r=cse |
| By: | Sanjeev Agarwal; Michael J. Barone |
| Abstract: | Branding strategies centering on the geographical origins of a product can provide a basis for differentiating commodity products. The use of such "geographical indications" (or GIs) can involve unique quality characteristics associated with a particular location or quality images that are based on the history, tradition, and folklore in a region. In this paper we describe the benefits and pitfalls (such as the threat of new entrants, oversupply, the broadening of boundaries to include more producers, and limiting generic use of such names) of using GI branding strategies. We also focus on trademark issues germane to a company's ability to (1) adopt GI-based trademarks as a means of gaining a competitive advantage and (2) protect the rights associated with such marks in order to sustain this source of competitive advantage. |
| Keywords: | brand, branding, commodity marketing, generic brand, geographic identity. |
| Date: | 2005–01 |
| URL: | http://d.repec.org/n?u=RePEc:ias:mpaper:05-mrp9&r=cse |
| By: | Sanjeev Agarwal; Michael J. Barone |
| Abstract: | Branding strategies centering on the geographical origins of a product can provide a basis for differentiating commodity products. The use of such "geographical indications" (or GIs) can involve unique quality characteristics associated with a particular location or quality images that are based on the history, tradition, and folklore in a region. In this paper we describe the benefits and pitfalls (such as the threat of new entrants, oversupply, the broadening of boundaries to include more producers, and limiting generic use of such names) of using GI branding strategies. We also focus on trademark issues germane to a company's ability to (1) adopt GI-based trademarks as a means of gaining a competitive advantage and (2) protect the rights associated with such marks in order to sustain this source of competitive advantage. |
| Keywords: | brand, branding, commodity marketing, generic brand, geographic identity. |
| Date: | 2005–01 |
| URL: | http://d.repec.org/n?u=RePEc:ias:cpaper:05-mrp9&r=cse |