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Competition Intensity, Potential Competition and Transaction Cost Economics

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  • Busse, Matthias

Abstract

As the process of globalisation of the world economy progresses, the degree of international competition among enterprises increases as well. Yet not all industries or branches are affected to the same extent by this development. One of the most important factors which determine the degree of globalisation of an industry is the level of transaction costs. Whereas low transaction costs tend to result in globalised markets, high transaction costs induce segmented markets. Because they may also indicate the degree of potential competition, transaction costs can be of great importance for competition authorities in the case of corporate mergers and acquisitions. Heterogeneous consumer preferences and product differentiation, as two additional determinants of the degree of globalisation, however, limit the meaningfulness of this approach. In some cases, the precision of the measurement of transaction is also inaccurate. This methodology hence cannot be generalised, but does make more sense in particular cases. Mit der fortschreitenden Globalisierung der Weltwirtschaft nimmt auch der Grad des internationalen Wettbewerbs zwischen den Unternehmen zu. Von dieser Entwicklung sind aber nicht alle Firmen im gleichen Ausmaß betroffen. Einer der wichtigsten Determinanten des Globalisierungsgrades einer Branche ist die Höhe der Transaktionskosten. Niedrige Transaktionskosten führen tendenziell zu globalisierten Märkten, hohe Transaktionskosten entsprechend zu segmentierten Märkten. Hinzu kommt, dass Transaktionskosten auch Auskunft über den Grad des potentiellen Wettbewerbs geben können. Damit erhalten Wettbewerbsbehörden einen wichtigen Indikator für die Beurteilung der räumlichen Marktabgrenzung, das heißt ob Unternehmen aus verschiedenen Ländern miteinander im Wettbewerb stehen. Hierbei sind jedoch mit heterogenen Präferenzen und Produktdifferenzierungen zwei weitere potentielle Einflussfaktoren auf den Grad der Globalisierung zu berücksichtigen. Zudem können Transaktionskosten nicht immer genau gemessen werden. Deshalb ist dieser Ansatz vielmehr in Einzelfällen sinnvoll anzuwenden und kann nicht verallgemeinert werden.

Suggested Citation

  • Busse, Matthias, 2002. "Competition Intensity, Potential Competition and Transaction Cost Economics," Discussion Paper Series 26168, Hamburg Institute of International Economics.
    • Handle: RePEc:ags:hwwadp:26168
    DOI: 10.22004/ag.econ.26168
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    More about this item

    Keywords

    International Relations/Trade;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F00 - International Economics - - General - - - General
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

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