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on Regulation |
| By: | Jens-Uwe Franck |
| Abstract: | This paper analyses three routes for the formation of market-opening rules: competition enforcement, legislation, and UK-style market investigation. Using case studies on facilitating market access for innovative payment services, we identify essential features and limitations of the different modes of rulemaking. The interrelation between them is explored, revealing the merits of having them available in parallel. |
| Keywords: | competition policy, institutional design, competition law, regulation, market investigation, open banking, fintech, big tech, payment services |
| JEL: | K21 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2022_367&r= |
| By: | Laurent Guihéry (CY CPU UFR LSH - CY Cergy Paris Université - UFR Lettres et sciences humaines - CY - CY Cergy Paris Université) |
| Abstract: | In its 2011 white paper, European transport policy recommends strengthening the dynamics of competition in passenger rail transport in the E.U. Since December 18, 2021, Trenitalia has been serving Lyon and Paris in open access as an extension of the Milan - Turin - Lyon - Paris line. For the moment, the offer concerns three round trips per day between Milan and Paris (five beginning of June). Offices and ticket vending machines have been installed in the Lyon and Paris stations. This is a revolution in France, a country that is one of the last in Europe to implement, slowly and cautiously, the recommendations of the European Union. Our paper will focus on the start-up of this service by attempting to evaluate the first six months of operation. |
| Keywords: | Railway,Competition,France,SNCF,Trenitalia |
| Date: | 2022–06–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-03753714&r= |
| By: | Marie Petitet; Frank Felder; Khalid Alhadhrami (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | In February 2021, Texas experienced an extreme cold snap causing a dramatic electricity blackout that left millions of households without electricity, resulting in over 200 fatalities and economic damages of approximately $100 billion. The Texas blackout has been used to support a variety of claims regarding renewable energy, electricity markets and climate change. We identify the blackout’s drivers and what has been learned since then. These lessons apply to power systems worldwide, including those of the Gulf Cooperation Council and the broader Middle East and North Africa region. |
| Keywords: | Market reforms, Reliability, Renewable energy |
| Date: | 2022–06–14 |
| URL: | http://d.repec.org/n?u=RePEc:prc:dpaper:ks--2022-dp09&r= |
| By: | KO Ryuya; OHASHI Hiroshi |
| Abstract: | This paper examines the economic consequences of code-sharing agreements (CSA) in the airline market. CSA can be viewed as a vertical contract between airlines, which sometimes co-own the code-shared flights. Our structural model aims to understand how and to what extent CSA distorts market competition among airlines. With an application to Japanese domestic airlines, structural estimates of our demand and supply models indicate that CSA would significantly lessen market competition, by sharing increased revenues from raised fares. We further extend our model to consider endogenous product quality. Although the loss of consumer welfare due to CSA is alleviated by enhanced product quality, the anti-competitive effect of CSA is persistent. |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:22080&r= |
| By: | Xiang Hui; Meng Liu; Tat Chan |
| Abstract: | Digital platforms sometimes offer incentives to a subset of sellers to nudge behavior, possibly affecting the behavior of all sellers in the equilibrium. In this paper, we study a policy change on a large e-commerce platform that offers financial incentives only to platform-certified sellers when they provide fast handling and generous return policies on their listings. We find that both targeted and non-targeted sellers become more likely to adopt the promoted behavior after the policy change. Exploiting a large number of markets on the platform, we find that in markets with a larger proportion of the targeted population—hence more affected by the policy change—non-targeted sellers are more likely to adopt the promoted behavior and experience a larger increase in sales and equilibrium prices. This finding is consistent with our key insight that a targeted incentive may increase demand for non-targeted sellers when both platform certificates and the promoted behaviors are quality signals. Our results have managerial implications for digital platforms that use targeted incentives. |
| Keywords: | targeted incentives, quality provision, signalling, demand expansion |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9894&r= |
| By: | Arnoud V. den Boer (University of Amsterdam); Janusz M. Meylahn (University of Twente); Maarten Pieter Schinkel (University of Amsterdam) |
| Abstract: | We examine recent claims that a particular Q-learning algorithm used by competitors ‘autonomously’ and systematically learns to collude, resulting in supracompetitive prices and extra profits for the firms sustained by collusive equilibria. A detailed analysis of the inner workings of this algorithm reveals that there is no immediate reason for alarm. We set out what is needed to demonstrate the existence of a colluding price algorithm that does form a threat to competition. |
| Keywords: | keywords |
| JEL: | C63 L13 L44 K21 |
| Date: | 2022–09–21 |
| URL: | http://d.repec.org/n?u=RePEc:tin:wpaper:20220067&r= |
| By: | Zhiqi Chen (Department of Economics, Carleton University) |
| Abstract: | Partitioned pricing is a common pricing practice that divides the price of a product into a base price and one or more mandatory surcharges. From the perspective of standard economic theory, this practice is puzzling because rational buyers care about the full price they pay for a product rather than whether and how the price is partitioned into various components. This paper develops a theory of partitioned pricing using a duopoly model where the owner of each firm determines the level of surcharge but delegates the setting of base price to a manager. It shows that in equilibrium both firms choose partitioned pricing over conventional all-inclusive pricing. Moreover, partitioned pricing leads to higher full prices and larger profits than all-inclusive pricing. Most surprisingly, collusion on surcharge without any coordination on base price is as profitable as collusion on all-inclusive price. Classification-L11, L22, L41 |
| Keywords: | partitioned pricing, surcharges, duopoly, strategic delegation, collusion |
| Date: | 2022–02–03 |
| URL: | http://d.repec.org/n?u=RePEc:car:carecp:22-02&r= |
| By: | Ratul Das Chaudhury (Postdoctoral Research Fellow, Centre for Global Business, Monash Business School); Chongwoo Choe (Director, Centre for Global Business, and Professor, Department of Economics, Monash Business School) |
| Abstract: | Australia’s Privacy Act 1988 is under review with a view to bringing Australia’s privacy laws into the digital era, more in line with the European Union’s General Data Protection Regulation (GDPR). This article discusses how the GDPR can be refined and standardized to be more effective in protecting privacy in the digital era while not adversely affecting the digital economy that relies heavily on data. We argue that an ideal data policy should be informative and transparent about the potential privacy costs while giving consumers a menu of opt-in choices into which they can self-select themselves. |
| Keywords: | digital privacy, GDPR, opt-in |
| JEL: | K24 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:mos:moswps:2022-19&r= |
| By: | Franco Fiordelisi (Universita' Roma 3 and University of Essex); Gabriele Lattanzio (Nazarbayev University, Graduate School of Business); Davide S. Mare (The World Bank and Edinburgh Business School) |
| Abstract: | We examine whether banks respond differently to the adoption of a supervisory guidance as compared to a similar regulatory action. By exploiting the staggered and distinct supervisory and regulatory implementation of the European Calendar Provision, we indeed document that while this reform achieved the intended overall goal of reducing European banks' nonperforming loans ratios, its effect materialized during the initial release of the ECB supervisory guidance, rather than following its adoption as a Pillar 1 regulation. That is, the subsequent formalization of this supervisory initiative within a regulatory framework achieved limited economic results, while eliminating any residual flexibility for the regulatory authority concerning the degree to which the calendar provisioning should be enforced. |
| Keywords: | Bank regulation, Cross-border financial institutions, Financial stability, non-performing loans |
| JEL: | G21 G28 G32 |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:asx:nugsbw:2022-05&r= |
| By: | Bardey, David |
| Abstract: | En este trabajo se analiza la introducción del modelo de negocios basado en plataformas en el mercado laboral colombiano, que se caracteriza por un alto nivel de informalidad. Estos modelos generan valor y flexibilidad, tanto para los consumidores como para los trabajadores. Sin embargo, en este modelo, conocido como “trabajo a demanda”, la empresa de plataforma transfiere el riesgo de las variaciones en la demanda de sus servicios a los trabajadores, que disponen de pocas herramientas para manejarlo, lo que termina por reforzar las precarias condiciones laborales que los caracterizan. El estudio analiza esta transferencia de riesgo inherente a ese esquema de contratación desde la perspectiva de la teoría de contratos y sugiere cambios normativos para moderarla. También se examina el papel de las plataformas en el mercado laboral desde un enfoque de organización industrial y de política de la competencia. Asimismo, se revisan algunas sentencias judiciales dictadas en distintas partes del mundo con el objetivo de reflexionar sobre diversos escenarios de cambios normativos que se podrían aplicar en el mercado laboral colombiano para reducir la informalidad de los trabajadores. Se concluye que se debería trabajar en una regulación que permita extraer renta de las plataformas. |
| Keywords: | EMPLEO, MERCADO DE TRABAJO, TECNOLOGIA DIGITAL, INTERNET, TECNOLOGIA DE LA INFORMACION, TECNOLOGIA DE LAS COMUNICACIONES, CONTRATOS, ORGANIZACION INDUSTRIAL, COMPETENCIA, ECONOMIA DEL TRABAJO, DERECHO DEL TRABAJO, EMPLOYMENT, LABOUR MARKET, DIGITAL TECHNOLOGY, INTERNET, INFORMATION TECHNOLOGY, COMMUNICATION TECHNOLOGY, CONTRACTS, INDUSTRIAL ORGANIZATION, COMPETITION, LABOUR ECONOMICS, LABOUR LAW |
| Date: | 2022–05–31 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:47906&r= |
| By: | Alessio Terzi; Aneil Singh; Monika Sherwood |
| Abstract: | The urgent need to accelerate on, and make a national success of, the green and digital transition are leading to wide-spread calls for greater government involvement in the economy, including by means of an active industrial policy. After reviewing several case studies, it becomes evident that, against conventional wisdom, nearly all countries have systematically engaged in some form of industrial policy, especially large economies like the USA and China, notwithstanding their very different economic models. The same is true for Europe, both at national level and through EU policies. After analysing these experiences, we draw six key policy lessons to inform future debates on how to shape a successful industrial policy in the years to come, and mitigate its risks, while acting in a context of souring geopolitical tensions. Nonetheless, industrial policy should not undermine the integrity of the Single Market, which has been, and should remain, a central element to ensure Europe’s prosperity going forward. |
| JEL: | E65 H50 H81 L52 N10 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:euf:dispap:157&r= |
| By: | Javier D. Donna (University of Florida/The Rimini Centre for Economic Analysis); Anita N. Walsh (TBA) |
| Abstract: | In 2020, an antitrust lawsuit was filed against the Pork Integrators alleging a §1 Sherman Act violation. At the center of the Lawsuit, there is an alleged exchange of atomistic information about the Pork integrators’ operations using Agri Stats, Inc. as a clearinghouse. We use the Supreme Court benchmark in American Column & Lumber to discuss two questions that arise from the Lawsuit. The first is whether the association of Pork Integrators and Agri Stats, Inc. resulted in the restraint of interstate commerce, the main specific issue at stake in the pork Lawsuit. The second is whether information-exchange agreements using clearinghouses like Agri Stats, Inc. lessen competition and offend United States antitrust law, a more general issue beyond the pork Lawsuit. We find that there appears to be ample evidence in the Lawsuit to merit prosecution regarding both trade restraints and information-sharing agreements. We conclude by discussing the role of the Agencies in setting the standards in informationexchange agreements. |
| Keywords: | Antitrust, Price-fixing, Competition, Information Sharing, Cartel, Pork Industry. |
| JEL: | K21 L12 L13 L41 L42 L66 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:aoz:wpaper:175&r= |
| By: | Liebrich M. HIEMSTRA |
| Abstract: | This article will explain the characteristics of the financial side of energy markets. It aims to clarify why financial contracts are needed in the energy sector and how such transactions are conducted by energy companies. A specific focus in this article is the low-carbon transition. This focus is also reflected in the description of the different types of financial contracts discussed herein, including derivatives relating to cap-and-trade schemes for CO2 emissions and environmental, social and governance (ESG) financial products. In addition, this article addresses how these financial contracts in the energy sector are regulated and will pay attention to anti-manipulation rules in the European Union and the United States. The low-carbon transition and climate finance is taken as a guidance in discussing the topics above and pursues to shed light on the question how financial contracts in the energy sector may contribute to a low-carbon transition. |
| Keywords: | Energy markets, derivative trading, REMIT, ACER, ESG, CO2 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2022/50&r= |
| By: | Penelope Buckley (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Daniel Llerena (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes) |
| Abstract: | Using a contextualised common pool resource framework, individual energy consumption choices are studied. Individuals are nudged towards the socially optimal level of consumption by the use of a happy (sad) face if they are underconsuming (overconsuming). A price is set to incentivise a second group to choose the level of consumption observed in the nudge treatment in order to quantify the nudge via an equivalent price. Across all 10 periods, consumption is significantly lower in treatment groups compared to control groups without nudges and prices. The price treatment leads to an average level of consumption above the Nash equilibrium. There are implications for policy makers as the nudge treatment performs as well, on average, as an equivalent price without the implied loss of welfare, and is understood and integrated into subjects' decision making quicker than an equivalent price. However, there is a tendency for both the nudge and the price to reinforce existing consumption behaviour as those who overconsume continue to overconsume. |
| Keywords: | Energy conservation,Financial incentive,Laboratory experiment,Nudge |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03765755&r= |
| By: | KAMEI Kenju |
| Abstract: | This study conducts a novel laboratory experiment that shows, for the first time, that the state of people’s self-regulatory resources influences their reliance on the formal enforcement of norms in a social dilemma. The experimental subjects’ self-regulatory resources are rigorously manipulated using well-known depletion tasks. On the one hand, when their resources are not depleted, most decide to govern themselves through monitoring and decentralized, peer-to-peer punishment in a public goods dilemma, and then successfully achieve high cooperation norms. On the other hand, when the amount of their resources is limited, the majority vote to enact a costly formal sanctioning institution and then construct deterrent punishment toward free riders; backed by formal punishment, groups achieve strong cooperation. A supplementary survey on the Covid-19 pandemic was conducted to enhance the external validity of the findings, generating a similar pattern. Self-control and commitment preference theories, combined with inequity aversion, can explain these patterns, because they predict that those with limited self-regulatory resources are motivated to remove temptations in advance as a commitment device, thus avoiding a large self-control cost. This underscores the role of commitment in the context of a social dilemma. |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:22084&r= |