Browsing by Author "Blomgren-Hansen, Niels"
Now showing items 1-13 of 13
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Blomgren-Hansen, Niels (København, 1998)[More information][Less information]
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notat til udvalget om skat og internationaliseringBlomgren-Hansen, Niels (København, 2001)[More information][Less information]
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Blomgren-Hansen, Niels (København, 2005)[More information][Less information]
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Blomgren-Hansen, Niels; Møllgaard, H. Peter (København, 1998)[More information][Less information]
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[More information][Less information]
Abstract: According to the Competition Act, a merger that impedes eective competition signi cantly, in particular by creating or strengthening a dominant postition, shall be prohibited. To decide whether this is the case the authorities need a quanti able model of the relationship between the variables that are directly aected by the merger and some measure of competition. In this paper we set up and calibrate a simple model of the interaction of the retail and the wholesale markets for high-end cosmetics in Denmark based on the Matas case. The model predicts that the acquisition of Matas - comprising roughly half of the market for high end cosmetics - may have a significant on retail prices and that the authorities had good reasons for making its approval conditioned on the removal of a number of contract-based barriers to entry. Analytically the main results are: (1) In a linear model with constant marginal costs the optimal wholesale prices are unexpected by the structure in the retail sector. (2) The ect on of buyer-power induced quantity dioscounts depends on the speci c design of the scheme: A relative discount on the list price the independent shops are charged increases the average retail price; A xed reduction relative to the pre-merger price reduces the average retail price). (3) Buyer-power induced retail price maintenance (RPM) increases the average retail price. RPM increases the competitiveness and pro ts of the merged shops if producers keep whole-sale prices unchanged. If, however, the producers adjust their wholesale prices, then RMP hurts merged and independent shops alike and benefits only the producers. URI: http://hdl.handle.net/10398/7516 Files in this item: 1
wp6-2007.pdf (422.4Kb) -
Blomgren-Hansen, Niels (Frederiksberg, 2009)[More information][Less information]
Abstract: Modelling the e¤ects of mergers in the retail sector. According to the Danish Competition Act, a merger that impedes ef- fective competition signi cantly, in particular by creating or strengthening a dominant postition, shall be prohibited. To decide whether this is the case the authorities need a quanti able model of the relationship between the variables that are directly a¤ected by the merger and some measure of competition. In this paper we set up and calibrate a simple model of the inter- action of the retail and the wholesale markets based on a concrete case (the acquisition and merger of 250 shops previously organized in a vol- untary chain of shops comprising roughly half of the market for high-end cosmetics in Denmark). The model predicts that an unconditioned merger was likely to have a signi cant impact on retail prices, in particular through possible abuse of buyer-power, and that the authorities had good reasons for conditioning its approval on the removal of a number of contract-based barriers to entry. Analytically, the main results are the following: (1) In a linear model characterized by heterogenous products and constant marginal costs the optimal wholesale prices are una¤ected by the structure in the retail sec- tor. (2) The e¤ect on of buyer-power induced quantity discounts depends crucially on the speci c design of the rebate scheme: A relative discount on the list price the independent shops are charged increases the average retail price; A xed reduction relative to the pre-merger price reduces the average retail price). (3) Buyer-power induced retail price maintenance (RPM) increases the average retail price. RPM increases the competitive- ness and pro ts of the merged shops if producers keep wholesale prices unchanged. If, however, the producers adjust their wholesale prices, then RMP hurts merged and independent shops alike and bene ts only the producers. URI: http://hdl.handle.net/10398/7986 Files in this item: 1
wp8-2009.pdf (202.2Kb) -
Blomgren-Hansen, Niels (København, 2005)[More information][Less information]
Abstract: Diamond’s two-period OLG growth model is based on the assumption that the stock of capital in any period is equal to the wealth accumulated in the previous period by the generation of pensioners. This stock equlibrium condition may appear an innocuous paraphrase of the ordinary macro-economic flow equilibrium condition, S = I. This is not the case. In this note I demonstrate that Diamond’s solution is unstable in a monetary market economy where households and firms make independent decisions as to how much to save and how much to invest. An increase in the rate of interest above the Diamond long-run equilibrium level will cause saving to fall by more than investment and, hence, result in excess demand for loanable funds and an upward pressure on the rate of interest. However, substituting the ordinary S = I flow equilibrium condition for Diamonds stock equilibrium condition reveals that the model has another solution - the rate of interest equals the rate of growth - and that this solution is stable in a capital-based economy (contrary to the pure consumption loan model of interest suggested by Samuelson(1958)). The model has interesting implications. Diamond’s model predict that an increase in rate of time preference causing the young generation to save less will reduce the capital stock and raise the rate of interest. However,the S = I based two period OLG model reveals that the old generation’s consumption falls by more than the the young generation’s consumption increases. Consequently, excess supply of loanable funds will drive down the rate of interest. If the rate of interest is equal to the rate of growth an increase in the time preference has no effect on the supply of loanable funds and, consequently, neither on the rate of interest or the stock of capital. Whether people prefer to consume as young or old should not be a matter of public concern (although the transition from one state to another may be). URI: http://hdl.handle.net/10398/7656 Files in this item: 1
wp14-2005.pdf (193.7Kb) -
Blomgren-Hansen, Niels (København, 1999)[More information][Less information]
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Blomgren-Hansen, Niels (København, 2008)[More information][Less information]
Abstract: In most countries labor is organzed in cooperating skill-speci c unions rather than in industrial unions or separately bargaining skill-speci c unions. Within an extremely simple model of a small open economy facing imperfect competition we show that this way of organizing labor can be explained as the outcome of rational (optimizing) behavior on the part of the unions and the employers. Organizing labor in local industrial cartels (regardless of skill) or a single economy wide cartel results in a real wage level that is inappropriately low both from the point of view of labor and the society as a whole unless labor has close to monopoly power in the wage setting process. Organizing labor in local or economy wide skill-speci c unions may result in a wage level that is too high. In addition, a labor market organized in non-cooperating unions is likely to be unstable. This dilemma calls for a compromise: A cartel of cooperating, independent skill-speci c unions. The degree and the form of the cooperation depend inter alia on the bargaining power of the employer, the number of skills and competing rms and the rigidity with which the unions enforce lines of demarcations. URI: http://hdl.handle.net/10398/7599 Files in this item: 1
wp3-2008.pdf (467.4Kb) -
Blomgren-Hansen, Niels (København, 1998)[More information][Less information]
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notat til udvalget om skat og internationaliseringBlomgren-Hansen, Niels (København, 2001)[More information][Less information]
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Blomgren-Hansen, Niels (København, 1999)[More information][Less information]
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Blomgren-Hansen, Niels (København, 2005)[More information][Less information]
Abstract: Samuelson (1958) analyses a three-period model, whereas Diamod (1965) considers a two-period model. This difference poses the question whether the insights derived by analysing the simple two-period model carry over in the more complicated three-period case. They do. The Samuelson model (no productive capital) has only one positive solution (r = n); however, this root is unstable. The Diamond model (no nonproductive abode of purchasing power) has also only one positive solution; the root is stable but inefficient. In a model with both productive capital and a non-productive abode of purchasing power, the inefficient Diamond solution becomes unstable and the socially optimal solution becomes stable. URI: http://hdl.handle.net/10398/7575 Files in this item: 1
wp15-2005.pdf (130.6Kb)
Now showing items 1-13 of 13