Incomplete Market Power Sample Clauses

Incomplete Market Power. So far, we have considered the case of pure uncontested monopoly. Many health care markets are better approximated by monopolistic competition. For example, two drug companies might hold patents on different drugs that treat the same disease. Doctors may build unique relationships with their patients, who develop a preference for one physician over another. Patients may prefer to go to a hospital that is closest to their home. All these factors can create product differentiation in the minds of consumers. Market power results, but it is incomplete. In this section, we add monopolistic competition to the moral hazard information structure. Monopolistic competition changes the distribution of resources relative to complete monopoly, but leaves intact the result that monopolistic competitors choose quantity so as to maximize extractible surplus. A monopolistic competitor must be mindful that her customers can defect to the other firm. This limits the amount of surplus available for extraction. However, conditional on consumer purchases from her, she will continue to set quantity so as to maximize their surplus. To distill the key ideas, suppose we have two monopolistic competitors—A and B—and two kinds of consumers, with one strictly preferring A, but the other strictly preferring B. Both products have the same marginal cost of production. The firms are integrated in the sense that they both produce their goods and provide insurance contracts over them. Further, as with most spatial models of product differentiation, assume that consumers must choose to use one or the other of the products, but not both—these might be different drugs, physicians, or hospitals, which cannot be easily used with those of rivals. Define u A (c, q, h) as utility for consumers who prefer A and define u B (c, q, h) similarly. If a consumer uses the “wrong” good, she derives utility ui (c,δq, h) , where δ < 1 . Since each consumer can only consume one of the goods, we can assume without loss of generality that insurers provide two insurance contracts—one that provides good A and one that provides good B . A.1 The Second-Best Efficient Allocation
Sample 1
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Related to Incomplete Market Power

  • Union Bulletin Board The Employer shall provide wherever possible a bulletin board for the exclusive use of the Union, the sites to be determined by mutual agreement. The use of such bulletin board facilities shall be exclusive to the Union. In other cases management will grant unrestricted use of the existing bulletin boards to the Union.

  • Union Bulletin Boards The employer shall provide the Union with bulletin boards in all buildings for posting notices of the following types: 1. Notices of recreational and social events 2. Notices of elections 3. Notices of results of elections 4. Notices of meetings

  • No Suspension of Trading in or Delisting of Common Shares; Other Events The trading of the Common Shares (including without limitation the Shares) shall not have been suspended by the Commission, the Principal Market or FINRA and the Common Shares (including without limitation the Shares) shall have been approved for listing or quotation on and shall not have been delisted from the Nasdaq Stock Market, the New York Stock Exchange or any of their constituent markets. There shall not have occurred (and be continuing in the case of occurrences under clauses (i) and (ii) below) any of the following: (i) trading or quotation in any of the Company’s securities shall have been suspended or limited by the Commission or by the Principal Market or trading in securities generally on either the Principal Market shall have been suspended or limited, or minimum or maximum prices shall have been generally established on any of such stock exchanges by the Commission or the FINRA; (ii) a general banking moratorium shall have been declared by any of federal or New York, authorities; or (iii) there shall have occurred any outbreak or escalation of national or international hostilities or any crisis or calamity, or any change in the United States or international financial markets, or any substantial change or development involving a prospective substantial change in United States’ or international political, financial or economic conditions, as in the judgment of the Agent is material and adverse and makes it impracticable to market the Shares in the manner and on the terms described in the Prospectus or to enforce contracts for the sale of securities.

  • Shares Listed on Trading Market The Shares shall have been listed and admitted and authorized for trading on the Trading Market, and satisfactory evidence of such actions shall have been provided to the Manager.

  • NO SUSPENSION OF TRADING IN OR DELISTING OF COMMON STOCK The trading of the Common Stock is not suspended by the SEC or the Principal Market (if the Common Stock is traded on a Principal Market). The issuance of shares of Common Stock with respect to the applicable Closing, if any, shall not violate the shareholder approval requirements of the Principal Market (if the Common Stock is traded on a Principal Market). The Company shall not have received any notice threatening the continued listing of the Common Stock on the Principal Market (if the Common Stock is traded on a Principal Market).

  • No Suspension of Trading in or Notice of Delisting of Common Stock Trading in the Common Stock shall not have been suspended by the Commission, the Trading Market or the FINRA (except for any suspension of trading of limited duration agreed to by the Company, which suspension shall be terminated prior to the Commencement Date), the Company shall not have received any final and non-appealable notice that the listing or quotation of the Common Stock on the Trading Market shall be terminated on a date certain (unless, prior to such date certain, the Common Stock is listed or quoted on any other Eligible Market), nor shall there have been imposed any suspension of, or restriction on, accepting additional deposits of the Common Stock, electronic trading or book-entry services by DTC with respect to the Common Stock that is continuing, the Company shall not have received any notice from DTC to the effect that a suspension of, or restriction on, accepting additional deposits of the Common Stock, electronic trading or book-entry services by DTC with respect to the Common Stock is being imposed or is contemplated (unless, prior to such suspension or restriction, DTC shall have notified the Company in writing that DTC has determined not to impose any such suspension or restriction).

  • Nasdaq National Market Listing The shares of Parent Common Stock issuable to the Company stockholders pursuant to this Agreement shall have been authorized for listing on the Nasdaq National Market upon official notice of issuance.

  • Bulletin Board The Employer shall provide a bulletin board which shall be placed so that all employees will have access to it and upon which the Union shall have the right to post notices of regular meetings, special meetings, seminars or Union activities.

  • Bulletin Boards The Employer shall provide bulletin board facilities for the exclusive use of the Union, the sites to be determined by mutual agreement. The use of such bulletin board facilities shall be restricted to the business affairs of the Union.

  • Bulletin Board Space 34.01 The Employer shall provide bulletin boards to be placed in reasonably accessible locations upon which designated space shall be provided where the Union may be permitted to post notices of meetings and other such notices which may be of interest to Employees. It is not the intention of the Union to post anything objectionable to the Employer.

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