This paper seeks to position the third-party transaction(TPT)in the macrostructure of Chinese market in terms of Concentration Ratio and Herfindahl-Hirschman Index.By extending both Cournot oligopolistic and Stackelbe...This paper seeks to position the third-party transaction(TPT)in the macrostructure of Chinese market in terms of Concentration Ratio and Herfindahl-Hirschman Index.By extending both Cournot oligopolistic and Stackelberg oligopolistic competition models,a new oligopolistic competition model is established for China’s TPT market.Based on multidimensional game,a pricing game model is theorized accordingly to elucidate the TPT platform.The influence of various factors on the price of the TPT platform is verified with numerical simulation.The formation of monopoly is an inevitable consequence of the"one superpower and multi powers"market structure given the unregulated development of TPT enterprises as the prerequisite.In addition,through the studies on telecom payment market,such unregulated development can also cause the"big-three"domination for the TPT enterprises in the"multi powers"market structure.Based on our modelizations,this paper serves to provide prospect recommendations for policy-making of state supervision authorities.展开更多
Is the degree of external economies （at the industry level） higher than the degree of internal increasing returns （at the firm level）？ If so, what is the exact source of this difference？ In the general equilibri...Is the degree of external economies （at the industry level） higher than the degree of internal increasing returns （at the firm level）？ If so, what is the exact source of this difference？ In the general equilibrium model in which firms producing final goods choose the degree of specialization of their technologies, external economies arise from the usage of intermediate inputs and the existence of internal increasing returns. It is frequently assumed that increasing returns are absent at the firm level while present at the industry level. In this model, the existence of increasing returns at the form level is necessary for the existence of external economies at the industry level. We show that the degree of external economies increases with the level of linkage effects. However, a higher linkage effect does not always lead firms to choose more specialized technologies.展开更多
The house price in the Hong Kong SAR of China is well-known to be‘unaffordable’.This paper relates the macroeconomy with the housing market of Hong Kong and argues that the housing supply plays a vital role in expl...The house price in the Hong Kong SAR of China is well-known to be‘unaffordable’.This paper relates the macroeconomy with the housing market of Hong Kong and argues that the housing supply plays a vital role in explaining the phenomenon.This paper also shows that there are some practical challenges in understanding the housing supply of Hong Kong,including the potentially complicated ownership structure of real estate development.While the discussion centres on the situation of Hong Kong,its lesson may also apply to housing markets in other small open economies.展开更多
We study overlapping-generations firm heterogeneity in economic development in an general equilibrium model in which manufacturing firms engage in oligopolistic competition. Individuals differ in their productivities...We study overlapping-generations firm heterogeneity in economic development in an general equilibrium model in which manufacturing firms engage in oligopolistic competition. Individuals differ in their productivities in the manufacturing sector and choose to become entrepreneurs or workers. The model is surprisingly tractable. In the steady state, an increase in the entry barrier in the manufacturing sector or an increase in the percentage of income spent on the agricultural good decreases the wage rate, but the level of output in the manufacturing sector does not necessarily decrease. An increase in the degree of patience of an individual increases the steady state wage rate and the capital stock. Even with increasing returns in manufacturing and constant returns in agriculture, neither the wage rate nor the output level in the manufacturing sector may increase with population size.展开更多
We provide a simple framework for analyzing how competition affects the choice of audit structures in an oligopolistic insurance industry. When the degree of competition increases, fraud increases but the response of ...We provide a simple framework for analyzing how competition affects the choice of audit structures in an oligopolistic insurance industry. When the degree of competition increases, fraud increases but the response of the industry in terms of investment in audit quality follows a U-shaped pattern. Following increases in com- petition, the investment in audit quality will decrease if the industry is initially in a low competition regime while it will increase when the industry is in a high competition regime. We show that firms will benefit from forming a joint audit agency only when the degree of competition is intermediate; in this case, cooperation might improve to- tal welfare and we analyze the effects of contract innovation on the performance of the industry.展开更多
In this general equilibrium model, firms engage in oligopolistic competition and choose increasing returns technologies to maximize profits. Capital and labor are the two factors of production. The existence of effici...In this general equilibrium model, firms engage in oligopolistic competition and choose increasing returns technologies to maximize profits. Capital and labor are the two factors of production. The existence of efficiency wages leads to unemployment. The model is able to explain some interesting observations of the labor market. First, even though there is neither long-term labor contract nor costs of wage adjustment, wage rigidity is an equilibrium phenomenon： an increase in the exogenous job separation rate, the size of the population, the cost of exerting effort, and the probability that shirking is detected will not change the equilibrium wage rate. Second, the equilibrium wage rate increases with the level of capital stock. Third, a higher level of capital stock does not necessarily reduce the unemployment rate. That is, there is no monotonic relationship between capital accumulation and the unemployment rate.展开更多
文摘This paper seeks to position the third-party transaction(TPT)in the macrostructure of Chinese market in terms of Concentration Ratio and Herfindahl-Hirschman Index.By extending both Cournot oligopolistic and Stackelberg oligopolistic competition models,a new oligopolistic competition model is established for China’s TPT market.Based on multidimensional game,a pricing game model is theorized accordingly to elucidate the TPT platform.The influence of various factors on the price of the TPT platform is verified with numerical simulation.The formation of monopoly is an inevitable consequence of the"one superpower and multi powers"market structure given the unregulated development of TPT enterprises as the prerequisite.In addition,through the studies on telecom payment market,such unregulated development can also cause the"big-three"domination for the TPT enterprises in the"multi powers"market structure.Based on our modelizations,this paper serves to provide prospect recommendations for policy-making of state supervision authorities.
文摘Is the degree of external economies （at the industry level） higher than the degree of internal increasing returns （at the firm level）？ If so, what is the exact source of this difference？ In the general equilibrium model in which firms producing final goods choose the degree of specialization of their technologies, external economies arise from the usage of intermediate inputs and the existence of internal increasing returns. It is frequently assumed that increasing returns are absent at the firm level while present at the industry level. In this model, the existence of increasing returns at the form level is necessary for the existence of external economies at the industry level. We show that the degree of external economies increases with the level of linkage effects. However, a higher linkage effect does not always lead firms to choose more specialized technologies.
基金The authors are grateful to Nan-Kuang Chen,Terence Tai Leung Chong,Qing He,Fred Kwan,Tommy Leung,Shane Su,Byron Tsang,Matthew Yiu,and the anonymous referee for helpful discussion.The authors also express their gratitude to City University of Hong Kong and Hong Kong Shue Yan University for their financial support.Part of the research was conducted when Charles Ka Yui Leung visited the Hoover Institution,whose hospitality is gratefully acknowledged.Moreover,part of the work described in this paper is supported by the Research Grants Council of the Hong Kong Special Administrative Region,China(Project No.:UGC/FDS15/B01/18).The usual disclaimer applies.
文摘The house price in the Hong Kong SAR of China is well-known to be‘unaffordable’.This paper relates the macroeconomy with the housing market of Hong Kong and argues that the housing supply plays a vital role in explaining the phenomenon.This paper also shows that there are some practical challenges in understanding the housing supply of Hong Kong,including the potentially complicated ownership structure of real estate development.While the discussion centres on the situation of Hong Kong,its lesson may also apply to housing markets in other small open economies.
文摘We study overlapping-generations firm heterogeneity in economic development in an general equilibrium model in which manufacturing firms engage in oligopolistic competition. Individuals differ in their productivities in the manufacturing sector and choose to become entrepreneurs or workers. The model is surprisingly tractable. In the steady state, an increase in the entry barrier in the manufacturing sector or an increase in the percentage of income spent on the agricultural good decreases the wage rate, but the level of output in the manufacturing sector does not necessarily decrease. An increase in the degree of patience of an individual increases the steady state wage rate and the capital stock. Even with increasing returns in manufacturing and constant returns in agriculture, neither the wage rate nor the output level in the manufacturing sector may increase with population size.
文摘We provide a simple framework for analyzing how competition affects the choice of audit structures in an oligopolistic insurance industry. When the degree of competition increases, fraud increases but the response of the industry in terms of investment in audit quality follows a U-shaped pattern. Following increases in com- petition, the investment in audit quality will decrease if the industry is initially in a low competition regime while it will increase when the industry is in a high competition regime. We show that firms will benefit from forming a joint audit agency only when the degree of competition is intermediate; in this case, cooperation might improve to- tal welfare and we analyze the effects of contract innovation on the performance of the industry.
文摘In this general equilibrium model, firms engage in oligopolistic competition and choose increasing returns technologies to maximize profits. Capital and labor are the two factors of production. The existence of efficiency wages leads to unemployment. The model is able to explain some interesting observations of the labor market. First, even though there is neither long-term labor contract nor costs of wage adjustment, wage rigidity is an equilibrium phenomenon： an increase in the exogenous job separation rate, the size of the population, the cost of exerting effort, and the probability that shirking is detected will not change the equilibrium wage rate. Second, the equilibrium wage rate increases with the level of capital stock. Third, a higher level of capital stock does not necessarily reduce the unemployment rate. That is, there is no monotonic relationship between capital accumulation and the unemployment rate.
