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Two short essays on services markets and services regulation

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  • Kox, Henk L.M.

Abstract

The first of both short essays deals with two structural constraints that distinguish services markets from e.g. markets for manufacturing products. The 'nearness restriction' requires that producer and consumer of the service product are present on the same location. The 'non-storability restriction' is even more binding and requires that producer and consumer are present at the same time (synchronicity); the implication is that the consumer is a co-producer. Services branches differ with respect to the binding intensity of both restrictions. The nearness and non-storability limitations define a services market in space and time, with impacts for market functioning, productivity (capacity use) and product tradability. Technological trends, especially digitalisation are oriented at relieving the bindingness of both restrictions, and indirect also of the co- producer role for the service consumer. The second essay links the services market characteristics to the role of the a priori product quality uncertainty, which always drove product market regulation by local and national authorities. Regulatory differences between countries nowadays are an important obstacle to international services trade.

Suggested Citation

  • Kox, Henk L.M., 2021. "Two short essays on services markets and services regulation," EconStor Preprints 266496, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:266496
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    File URL: https://www.econstor.eu/bitstream/10419/266496/1/KVL_Discussion%20paper_2021-05_Two_essays-on_services_FINAL.pdf
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    References listed on IDEAS

    as
    1. Henk Kox & Hildegunn Kyvik Nordås, 2007. "Services Trade and Domestic Regulation," OECD Trade Policy Papers 49, OECD Publishing.
    2. Hildegunn Kyvik Nordås & Henk Kox, 2009. "Quantifying Regulatory Barriers to Services Trade," OECD Trade Policy Papers 85, OECD Publishing.
    3. Paul Conway & Giuseppe Nicoletti, 2006. "Product Market Regulation in the Non-Manufacturing Sectors of OECD Countries: Measurement and Highlights," OECD Economics Department Working Papers 530, OECD Publishing.
    4. Isabell Koske & Isabelle Wanner & Rosamaria Bitetti & Omar Barbiero, 2015. "The 2013 update of the OECD's database on product market regulation: Policy insights for OECD and non-OECD countries," OECD Economics Department Working Papers 1200, OECD Publishing.
    5. Cristiana Vitale & Rosamaria Bitetti & Isabelle Wanner & Eszter Danitz & Carlotta Moiso, 2020. "The 2018 edition of the OECD PMR indicators and database: Methodological improvements and policy insights," OECD Economics Department Working Papers 1604, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    services; market forms; nearness restriction; non-storability restriction; productivity and capacity use; services regulation; international trade in services;
    All these keywords.

    JEL classification:

    • L8 - Industrial Organization - - Industry Studies: Services
    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L5 - Industrial Organization - - Regulation and Industrial Policy

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