A consumer as an entrant in the Norwegian cement market

Article Abstract:

A market model of a single dominant incumbant being challenged by market entry by two different rivals is applied to the case of the Norwegian cement market. Different entry strategies are characteristic for entrant firms that begin as an importer of cement for its own use and as an importer seeking to be a dealer. The examination is seen as germane for other markets where buyers may use sunk investments to seek access to secondary suppliers. The theoretical model's predictions are found to conform with the Norwegian cement market case. The consumer entrant is seen to welcome price cutting and have no reason to limit capacity.

Cement, hydraulic, Models, Economic aspects, Norway, Cement industry, Business-to-business market, Business to business market

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Discount chains and brand policy

Article Abstract:

Exclusion of brands can be profitable to discount chains if the products are sufficiently symmetric in demand. An analysis of the brand policy of discount chains reveals that competition for shelf space is most likely to result when a discount chain commits to exclusive dealing. Such situation, which happens to be beneficial to the retailer, occurs when the demand is sufficiently symmetric. When the demand is sufficiently asymmetric, exclusive dealing does not result to intense competition for shelf space since the producer knows that the retailer will earn only a limited profit from carrying the product of a competitor.

All Other Specialty Food Stores, Variety stores, Discount Stores, Research, Distribution of goods, Distribution (Commerce), Exclusive dealing agreements

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Tighter average revenue regulation can reduce consumer welfare

Article Abstract:

A study was conducted on the impact of stringent average revenue regulation on consumer welfare in the UK. The adopted model assumed that the monopoly firm freely establishes prices to profit optimally and in consistency with the average regulation constraint. Reduced maximum permitted average price was found to lessen consumer welfare.

Consumption (Economics), Monopolies, Price control, Price regulations

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