Market Power in Chinese Taipei: Laws, Policies and Treatments

The experience of Chinese Taipei shows that opening up a previously protected market to new entrants can be a more effective and reliable way to enhance competition than regulating the behavior of dominant or monopolistic firms. Moreover, when opening up the market, the liberalizing measures adopted by government should be market-structure-neutral. That is, it should not try to dictate the direction and results of market competition. A more pressure-resistant mechanism should be designed to deal with market power, taking the form of a regime that is cross-sector, independent and collective in its decision-making, such as has been the case with Chinese Taipei's Fair Trade Commission.     

逐步剥离:我国铁路重组合理组织边界的初步探讨

引入竞争、提高效率是我国铁路重组改革的重要目标指向，因此组织边界的确定以及与之相配套的竞争激励措施已成为重组模式选择的关键议题。本文以自然垄断和交易成本理论为指导，以竞争激励促进企业运行效率为依据，通过对世界各国多种重组模式的垄断与竞争格局进行比较分析，提出了用逐步剥离的方式逼近我国铁路重组合理组织边界的改革思路。     

Technical innovation and 3.5 mobile phone generation: Lessons from Korea

In 1996, the Korean mobile communication market was the first in the world to commercialize the code division multiple access (CDMA). Since then, the voice-based mobile phone market has continued to grow and has now reached near saturation. Having recognized the potential of the mobile data service as a new source of profit, telecommunication operators are scrambling to evolve 3.5 generation (3.5G) technology in order to lead market competition. Recently, the Korean 3.5G mobile telecom market has faced stiff competition from CDMA-based EVDO Rev.A and global system for mobile telecommunications (GSM)-based high-speed downlink packet access (HSDPA). In addition, the world's first wireless LAN-based wireless broadband internet (WiBro) service was commercialized in June, 2006. This paper reviews the current status of the 3.5G technology and analyzes the service standardization strategies from the viewpoint of technological evolutions. This paper also suggests implications for Korea's specific circumstances where different mobile telecom technologies complement and compete with one another. Korea's experiences may serve as important lessons for other countries or operators who try to introduce the 3G and look beyond mobile telecom technologies.     

中国纺织服装业——蓄势待发

中国纺织服装业一直是实现贸易顺差的主要产业。但近两年来,在人民币升值、纺织品出口退税减少、生产成本大幅度攀升、美国次贷危机等诸多国内外因素的作用下,中国纺织服装业正面临着前所未有的"寒冬"时代。本文通过分析中国纺织服装业面临的困难,提出需要通过扩大内需市场的占有率以及进行产业整合来实现中国纺织服装业的整体转型。     

Restructuring diversified telecom operators

The paper examines restructuring cycles among diversified major telecom operators from two different perspectives, the governance deficiency perspective of agency theory and the governance efficiency perspective of transaction cost economics, the former being less consistent with the spirit of recent pro-competitive regulatory reforms than the latter. This restructuring cycle describes how incumbent operators grew larger and more diversified during the telecom boom before they were transformed into more efficient scale and scope either by economizing managers or by market forces along with actively intervening owners and bondholders during the subsequent telecom bust. A cycle whose expansion phase is characterized by highly acquisitive companies expanding into non-related activities followed by a delayed contraction phase where overdiversified companies are being restructured by market forces and intervening owners and bondholders is consistent with the reform-non-compliant governance deficiency thesis of agency theory. A cycle whose expansion phase is characterized by acquisitive companies expanding into related activities followed by a contraction phase where companies are restructured by their own managers after having realized that previously acquired assets have become more redeployable and their services more tradable is consistent with the reform-compliant governance efficiency thesis of transaction cost economics. Now, in the aftermath of the contraction phase of the business cycle, more narrowly focused incumbents are once again ready for another round of acquisitive expansion. Anecdotal evidence from five restructuring cases, along with available secondary information about the development of the industry, seems to support the reform-noncompliant governance deficiency thesis of agency theory rather than the reform-compliant governance efficiency thesis of transaction cost economics.     

Telecom reform: progress and prospects

The dominant activity in telecom reform is now shifting from policy development to implementation. This is a more difficult task that depends heavily on competent, independent regulation in both developed and developing countries. A speed up in the remaining steps to complete full institutional restructuring is needed, including clarification of the roles for national and regional regulation and for international governance. New national regulators must rapidly establish transparent participatory processes and decision criteria to minimise uncertainty and enhance credibility. Experience to date indicates that competition in reality may be a more limited instrument of policy than it has been in theory, and the goal of a global universal service will remain elusive unless given a higher priority in policy and practice. Telecom reform is leading to increasing integration of telecom with other sectors of the economy, and telecom policy with broader economic and social policy. Telecom networks are providing the foundation of information infrastructures, which in turn are rapidly becoming an indispensable component of the 21st century knowledge infrastructures. For the future, telecom policy and regulation must facilitate knowledge network development in new knowledge-based economies and societies. This raises a question of whether telecom regulation should assume a more proactive role in facilitating new network service applications, especially in the public sector.     

Competition and regulation in China's 3G/4G mobile communications industry—Institutions,governance, and telecom SOEs

When it comes to the analysis of the intrinsic mechanism of market behaviors and hence competition development and regulatory imperatives in the Chinese telecommunications industry, currently there is no consistent pattern offered in the literature. In China's emergent 3G/4G era, market behaviors can be affected by various institutional factors, along with various forms of informal forces, which may translate into different implications for competition regulation. Based on extensive archival research and interview, this current study aims to bridge the gap by following an interpretive approach. An input–output model was substantiated for pattern-matching in the Chinese context base on the postulation of a series of propositions and hence Industry-Gray-Box. Accordingly, two categories of market behaviors, that is, market-driven vs. institutions-driven, were arguably delineated as being underpinning the competition development. Policy implications and future reform imperatives were discussed. This study may advance knowledge in terms of: (1) the establishment of a relatively consistent pattern for mapping the landscape of China's communications industry; (2) the substantiation of the inner working mechanism of China's SOE system in the telecommunications sector; and (3) original first attempt in identifying different roles of telecom SOEs and the governing forces that affect them. The paper also offers extensive and cohesive insights on China's formal and informal institutional environment in general and for telecommunications in particular. Measurements developed in this study may serve as basis for future study.     

国内成品油市场竞争的新格局

随着我国成品油市场的开放，国内成品油市场已经改变了原有格局。分析了当前成品油市场上各竞争主体，阐释了我国的成品油市场开始呈现的以中国石化、中国石油两大集团为主导，其他国有石油公司、民营企业、国际石油公司共同参与竞争的新格局。     

Diversification strategies in network-based services: The case of mobile virtual network operators

This paper aims at discussing the entry process and competitive strategies of MVNOs in Italy and France. It illustrates the features of competition in a sector – the mobile telecom service industry – which is characterized by market saturation and demand heterogeneity. In doing so, it looks at the characteristics of the two countries in terms of competition and entry of new operators, at the motivations behind the entry of MVNOs, and at the performance of different companies. Results show that the most successful MVNOs are those characterized by the ability to find a perfect match between their core competencies (large network management, strong brand reputation) and the needs of specific segments of demand that had not been previously fulfilled. In this context, companies with ICT network management skills, whether coming from the telecom sector or from other network-based service industries such as postal operators, have been particularly successful in the market. From a policy perspective, despite the failure of some MVNOs, customers have benefited from the increased competition between MNOs and MVNOs in terms of range of service offerings and prices.     

奇瑞与江淮：门当户对的烦恼

大的整合小的,强的整合弱的,这对于北京和山东是件理所应当的事,可却给同样有着大汽车梦想的安徽出了难题。奇瑞、江淮重组姻缘大戏曲曲折折,扑朔迷离,引的众看官是欲罢不能,而江淮股票的小散们更是艰难抉择,买还是不买,这是个问题。     

Demand for telecommunication services in developing countries

Living standards and economic growth in developing countries are invariably linked to the availability and use of telecom services. Effective policy decisions require the best estimates of the drivers of these services. In this paper, telecommunications demand is estimated in models for residential mainline and mobile telephone service for developing countries for the period 1996–2003. The paper tests for cross-price effects between mainline and mobile service and its findings have important policy implications. It finds residential monthly price elasticity to be insignificant for developing countries, but the connection elasticity is larger than generally found in the literature. Mobile monthly price elasticities are very large. A new and important empirical finding is that although wireline phones are substitutes in the mobile market, the contrary is not true—mobile phones are not substitutes in the wireline market, and in fact may be considered complements. This lack of symmetry has important implications for properly defining telecom markets. Universal service subsidies and competitive market initiatives should be reevaluated in light of the paper's elasticity estimates. Increased competition, income growth and enhanced education may be the ultimate universal service promoters.     

国内外丙酮的生产现状及市场前景

近年来，世界丙酮的生产发展很快。但由于市场需求强劲和原料短缺导致生产受限，全球丙酮市场供应仍较为紧张。我国目前的丙酮产能也同样无法满足国内的需求，每年需要大量进口。通过对全球目前的丙酮生产现状和市场前景进行分析，认为丙酮在我国仍有较好的发展前景。但需要注意由于全球丙酮生产能力增长过快而出现的市场竞争。我国丙酮工业发展要降低生产成本，提高产品的竞争力，规避市场风险，要积极拓宽丙酮新的应用领域，以确保我国丙酮行业健康有序地发展。     

中国船供油市场发展现状及前景展望

全球船供油市场具有单次加油量大、流动性强的特点,市场竞争激烈.随着国际贸易的迅猛发展,全球船用燃料油消费量逐年增加,并呈高黏度发展趋势.中国船供油行业近年来发展很快,其中内贸船供油规模稳步扩大,市场化程度较高;保税船供油市场发展迅速,竞争加剧;但与庞大的港口吞吐量相比,船舶燃料油销售量仍然偏低.国内船供油行业多数国仓存在设备老化、包袱重的问题,而且面临行业外部发展环境不佳、行业内部竞争过度的压力.经历了2008年下半年国际油价暴跌的洗礼,国内船供油行业已重新迎来快速发展的机遇.预计未来中国将出现多个水上加油中心,并推动全球船供油重心向亚洲转移;中国船供油企业将把竞争重点转向服务品质,并加快走向世界,不断提高抗风险能力.     

Merger simulation using average market share: An application to the Optimus-TMN mobile merger case

This paper develops a new merger simulation methodology based on the analysis of the performance change of a hypothetical firm with average market share. It applies the methodology to the Optimus-TMN mobile telecom merger case in Portugal, within the context of the December 2006 decision by the Portuguese Competition Authority to authorize the merger between their respective parent companies, Sonaecom and Portugal Telecom. The results suggest that the Optimus-TMN merger would have resulted in 3.8% higher prices and 14.9% lower marginal costs, and would have been welfare-enhancing. These findings attest to the importance of the “efficiency defense” hypothesis of mergers. They suggest that competition authorities are warranted in allowing further consolidation in the telecom sector, but that consolidation should be accompanied by strict retail price-cap regulation.     

石化产业结构调整中的若干问题

90年代以来,世界石化市场重心偏移亚洲,中国石化工业面临着激烈的币场竞争,根据2000年我国石化工业市场占有率的目标提出了市场、产销一体化、规模、产业布局、相关产业和体制改革等产业结构调整中的问题和相应实施的措施。     

我国国内市场一体化的影响因素分析——基于面板数据的检验

在使用价格指数法测算出我国国内市场一体化程度的基础上，本文实证检验我国国内一体化的影响因素。结果表明，地方保护倾向与国内市场一体化水平负相关；铁路营业里程增长与国内市场一体化水平正相关，公路里程增长与国内的市场一体化负相关；CAFTA建设对国内市场一体化具有显著正向作用，有利于推进国内区域经济协调发展；区域GDP差异加剧了地方政府本地市场偏好。这对我国促进国内市场整合与区域协调发展具有现实意义。     

The Institutions of Industrial Restructuring in Southeast Asia

The expected restructuring of Asian corporations in the aftermath of the 1997 financial crisis has not materialized. This paper argues that restructuring in Asia will depend upon two institutional changes. First, the creation of high quality institutions that promotes the growth of new entrants and provides incentives to incumbents to restructure and or exit. Second, that the market scope of dominant incumbents be confronted and limited. The first condition creates pathways for new organizational populations to enter the economy and the second ensures room for their growth. The current debate emphasizes the former but neglects the latter. The absence of either inhibits the rate and direction of restructuring for two reasons. First, incumbents may lack the incentive and ability to exit or transform their structures and, secondly, incumbents can create a ‘blocking coalition’ to diminish competition from new entrants.     

探究三网融合

今年1月13日,由国务院总理温家宝主持召开的国务院常务会议刚刚通过了加速推进电信网、广播电视网和互联网三网融合的决议,首次从国家层面提出了三网融合推进的具体计划并制订了时间表。     

Evaluating the impact of divestitures on competition: Evidence from Alberta’s wholesale electricity market

Asset divestitures play a central role in antitrust and competition policy. Despite their importance, empirical evidence on their impacts on market competition is limited. We analyze market power in Alberta’s wholesale electricity market, where transitional arrangements that virtually divested generation assets from large incumbents were put in place during market restructuring in the early 2000’s and expired at the end of 2020. Subsequently, average peak hour prices rose by 120% the year after their expiry. We demonstrate that nearly two-thirds of this increase can be explained by elevated market power from the large suppliers. Further, exploiting variation in the allocation of the divested assets across heterogeneous firms, we demonstrate that market power execution is elevated when the divested assets are controlled by large strategic firms. Our findings highlight the important role that asset divestitures and their allocations can have on market competition. Our analysis also raises concerns over the ability of restructured electricity markets to facilitate sufficient competition through entry and the potential need for regulatory intervention.     

An analysis of the disruptive impact of the entry of Free Mobile into the French mobile telecommunications market

The issue of disruptive operators has recently gained interest among researchers and regulators. From a regulator's perspective, disruptive operators can increase competitive rivalry in markets dominated by a handful of large companies, thereby allowing consumers to obtain more benefits in terms of price and quality. Largely overlooked in this discussion has been the impact that the specific identity, complementary assets of operators, and their strategies have on the marketplace dynamics. In this paper we explore the impact that one such operator – Free Mobile – has had on the French mobile telecommunications market. Drawing on a wide range of secondary sources, our analysis finds that the entry and subsequent growth of Free Mobile has had a complex and multi-faceted impact on the market. Their growth has been at the expense of the other three mobile network operators active in the French market, while their innovative business model, which enables it to compete on the basis of low costs, has been copied by its rivals. The specific characteristics of Free Mobile and of its strategy have contributed to a significantly alteration to how competition occurs in this market. This, in turn, triggers a strong incentive for restructuring, which is actually restrained by regulatory concerns.