Preparing for competition in a network utility - final assignment Essay

Preparing for competition in a network utility - final assignment - Essay Example For assessing this abuse, the relevant market needs to be defined. In this essay, the test to define relevant market called SSNIP test is discussed with reference to two closed cases under OFT. This essay is organized as follows. Second section discusses the economic theory behind competition, section 3 discusses the Competition Act 1998, Section 4 discusses the cases ,section 5 discusses the analysis and findings and section 6 concludes the essay. According to economic theory, competition and antitrust law are supposed to maximize allocative, productive and dynamic efficiency (Economides, 2004).However, in the case of network industries, due to their special features, economic regulation is established as an alternative to competition and antitrust law in many of these industries(Economides, 2004). The complimentarity of network industries to each other and the increasing returns to scale in consumption effects of these industries called network effects are tow distinguishing features of network industries. Due to the network effects of these industries, contrary to the law of demand for traditional industries, the willingness to pay for last unit will be higher here(Economides,1996; Brenan,2000). The following are the main special features of the network industries that arise due to the network effects. The first is the possibility of making money from both sides of a network. Second is the existence of externalities in the market which means incomplete internalization of benefits by the market. Third is the high speed market penetration in network industries compared to the other industries. Fourth is the very high market share and profit inequality for markets with strong network effects. Fifth is the possibility of maximisation of social surplus by monopoly. Sixth is that it is not necessary for the existence of anti competitive acts to create

Case analysis--- intercultural communication Essay

Case analysis--- intercultural communication - Essay Example The term globalization can be defined on the basis of four elements such as network extensity that facilitates connecting with different organizations, countries and people located across the globe, interaction intensity in such networks, speed of movement of such people, products, information across the globe, and the impact that is caused on various communities due to such a trend. In the context of globalization there often exists dilemma amongst the companies as to follow the ethical standards that are set in their home country or to adapt to the cultures and ethics of the local country so as to sustain its business operations (Varner & Beamer, 2011).One of the most renowned companies in the technology sector that faced such a dilemma was Google. It is the largest search engine across the globe with a total market of 70% in United States as identified in the year 2010. The company has not only been able to achieve high performance standards and success but also have set an image of being highly ethical by nature. The company performs all its operations based on the philosophy that money can be made even without doing any such thing that is evil. The major turmoil that the company noticed was in the year 2006 with the launch of a search engine that was China based. The company’s major motive was to gain market share in China and to make the Chinese pop ulation easily access all forms of information through its search engine (Human Rights Watch, 2010). However the company in order to be aligned with the censorship laws of the Chinese government agreed on the aspect of filtering certain words and information that would violate the law. Such words majorly were those that were politically sensitive such as democracy, etc. However the company faced major challenge through this initiative as many personnel engaged in human