Market structure and competition in transition: results from a spatial analysis

The present article provides first microlevel (indirect) empirical evidence on changes in entry barriers, the determinants of firm profitability as well as the nature of competition for a transition economy. We estimate size thresholds required to support different numbers of firms for several retail and professional service industries in a large number of geographic markets in Slovakia. The 3 time periods in the analysis (1995, 2001 and 2010) characterize different stages of the transition process. Specific emphasis is given to spatial spill-over effects between local markets. Estimation results obtained from a spatial ordered probit model suggest that entry barriers have declined considerably (except for restaurants) and that the intensity of competition has increased on average. We further find that demand spill-overs and/or the effects associated with a positive correlation in unobservable explanatory variables seem to outweigh negative spill-over effects caused by competitive forces between neighbouring cities and villages. The importance of these spatial spill-over effects differs across industries.     

The fit between product market strategy and business model: implications for firm performance

We examine the fit between a firm's product market strategy and its business model. We develop a formal model in order to analyze the contingent effects of product market strategy and business model choices on firm performance. We investigate a unique, manually collected dataset, and find that novelty‐centered business models—coupled with product market strategies that emphasize differentiation, cost leadership, or early market entry—can enhance firm performance. Our data suggest that business model and product market strategy are complements, not substitutes. Copyright © 2007 John Wiley & Sons, Ltd.     

Consumers and the conflict of laws in Dutch legal practice

Kaffeefahrt is the keyword for a survey of the situation of the consumer when it comes to the practice of conflict of laws in the Netherlands.The number of international consumer conflict of law cases that are met in Dutch legal practice seems to be quite low. However, the factual circumstances ofKaffeefahrten are similar to the sale of time-sharing developments in Southern Europe. This seems to be the most common example of internationalKaffeefahrt cases.

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Konsumenten und Rechtskonflikte in der hollÄndischen Rechtssprechung

Zusammenfassung Der Beitrag gibt unter dem StichwortKaffeefahrt einen überblick über die Situation des niederlÄndischen Konsumenten in FÄllen, die durch zwei beteiligte Staaten rechtlich unterschiedlich geregelt werden. Der Autor behandelt zunÄchst einige wenige FÄlle von Rechtsstreitigkeiten nach einer Kaffeefahrt, wo Konsumenten in ein Nachbarland gefahren werden und dort bei einer Tasse Kaffee zum Abschlu\ irgendeines Kaufvertrages aufgefordert werden. Der Autor übertrÄgt seine überlegungen zu der Frage, welches Recht anzuwenden ist, auf die hÄufiger werdenden FÄlle von kaffeefahrtartiger Anbahnung von VertrÄgen über die Teilzeitnutzung von Ferienwohnungen in alpinen oder mediterranen LÄndern.

     

The German economy in the Autumn of 1995

The German economy in the Autumn of 1995     

Repercussions of reunification: patterns and trends in the socio-economic transformation of East Germany

This article presents empirical evidence about the first stage of the social and economic transformation process of East Germany after political reunification. It shows that, while political and institutional unification may have been achieved in 1990, the social and economic gaps have been widening since then. The authors identify groups which have become clear winners in this transition as well as the losers.     

The internationalization of corporate research and development

Foreign direct investment has grown rapidly in recent decades and, along with it, foreign research and development activities. The following article analyzes the reasons for the internationalization of R&D, examines its patterns in relationship to Germany and discusses the implications for future policy.     

Determinants of price flexibility in oligopolistic markets: Evidence from austrian manufacturing

In this paper, we examine the impact of market structure (concentration) on three different characteristics of industrial pricing behavior: 1) the sensitivity of prices to cost and demand changes, 2) the speed of price adjustment, and 3) the asymmetry of price behavior. We find the relationship between concentration and the sensitivity of prices to cost changes to be the most robust one. Cost changes are less fully transmitted into prices in highly concentrated industries. Overall, differences in the pricing behavior across industries can be “explained” fairly well with industry differences in concentration, capital intensity, inventoriability, and the length of the production period.