The role of competition and state aid policy in financial and monetary law

During the financial crisis, companies and lenders found themselves in distressed situations. Competition authorities across the globe had to deal with controversial issues such as the application of the failing firm defence in merger transactions as well as assessment of emergency aid granted by states. This article considers competition policy in periods of crisis, in particular the failing firm defence in merger control and its state aid policy.

Effect of wheat dwarfing genes on nitrogen-use efficiency

Near isogenic lines (NILs) varying for alleles for reduced height (Rht) and photoperiod insensitivity (Ppd-D1a) in a cvar Mercia background (rht (tall), Rht-B1b, Rht-D1b, Rht-B1c, Rht8c+Ppd-D1a, Rht-D1c, Rht12) were compared at a field site in Berkshire, UK, but within different systems (‘organic’, O, in 2005/06, 2006/07 and 2007/08 growing seasons v. ‘conventional’, C, in 2005/06, 2006/07, 2007/08 and 2008/09). In 2007 and 2008, further NILs (rht (tall), Rht-B1b, Rht-D1b, Rht-B1c, Rht-B1b+Rht-D1b, Rht-D1b+Rht-B1c) in both Maris Huntsman and Maris Widgeon backgrounds were added. The contrasting systems allowed NILs to be tested in diverse rotational and agronomic, but commercially relevant, contexts, particularly with regard to the assumed temporal distribution of nitrogen availability, and competition from weeds. For grain, nitrogen-use efficiency (NUE; grain dry matter (DM) yield/available N; where available N=fertilizer N+soil mineral N), recovery of N in the grain (grain N yield/available N), N utilization efficiency to produce grain (NUtEg; grain DM yield/above-ground crop N yield), N harvest index (grain N yield/above-ground crop N yield) and dry matter harvest index (DMHI; grain DM yield/above-ground crop DM yield) all peaked at final crop heights of 800–950 mm. Maximum NUE occurred at greater crop heights in the organic system than in the conventional system, such that even adding just a semi-dwarfing allele (Rht-D1b) to the shortest background, Mercia, reduced NUE in the organic system. The mechanism of dwarfing (gibberellin sensitive or insensitive) made little difference to the relationship between NUE and its components with crop height. For above-ground biomass: dwarfing alleles had a greater effect on DM accumulation compared with N accumulation such that all dwarfing alleles could reduce nitrogen utilization efficiency (NUtE; crop DM yield/crop N yield). This was particularly evident at anthesis in the conventional system when there was no significant penalty for severe dwarfism for N accumulation, despite a 3-tonne (t)/ha reduction in biomass compared to the tallest lines. Differences between genotypes for recovery of N in the grain were thus mostly a function of net N uptake after anthesis rather than of remobilized N. This effect was compounded as dwarfing, except when coupled with Ppd-D1a, was associated with delayed anthesis. In the organic experiments there was greater reliance on N accumulated before anthesis, and genotype effects on NUE were confounded with effects on N accumulated by weeds, which was negatively associated with crop height. Optimum height for maximizing wheat NUE and its components, as manipulated by Rht alleles, thus depend on growing system, and crop utilization (i.e. biomass or grain production).

Firm size and competition: a comparison of the housebuilding industries in Australia, the UK and the USA

Housebuilding is frequently viewed as an industry full of small firms. However, large firms exist in many countries. Here, a comparative analysis is made of the housebuilding industries in Australia, Britain and the USA. Housebuilding output is found to be much higher in Australia and the USA than in Britain when measured on a per capita basis. At the same time, the degree of market concentration in Australia and the USA is relatively low but in Britain it is far greater, with a few firms having quite substantial market shares. Investigation of the size distribution of the top 100 or so firms ranked by output also shows that the decline in firm size from the largest downwards is more rapid in Britain than elsewhere. The exceptionalism of the British case is put down to two principal reasons. First, the close proximity of Britain’s regions enables housebuilders to diversify successfully across different markets. The gains from such diversification are best achieved by large firms, because they can gain scale benefits in any particular market segment. Second, land shortages induced by a restrictive planning system encourage firms to takeover each other as a quick and beneficial means of acquiring land. The institutional rules of planning also make it difficult for new entrants to come in at the bottom end of the size hierarchy. In this way, concentration grows and a handful of large producers emerge. These conditions do not hold in the other two countries, so their industries are less concentrated. Given the degree of rivalry between firms over land purchases and takeovers, it is difficult to envisage them behaving in a long-term collusive manner, so that competition in British housebuilding is probably not unduly compromised by the exceptional degree of firm concentration. Reforms to lower the restrictions, improve the slow responsiveness and reduce the uncertainties associated with British planning systems’ role in housing supply are likely to greatly improve the ability of new firms to enter housebuilding and all firms’ abilities to increase output in response to rising housing demand. Such reforms would also probably lower overall housebuilding firm concentration over time.

Competition and product survival in the UK car market

The paper examines the extent to which inter- and intra-firm competition influenced the survival of cars in the UK market between 1971 and 1998. It is shown that, while competition influenced product survival in all market segments within the UK car market, the nature of that competition differed between them. In the small family and large family car segments, intra-firm competition dominated inter-firm competition. In contrast, in the luxury/sports car segment only inter-firm competition conditions resulted in product survival. Evidence was also found that the luxury/sports car segment has grown more competitive over time and that firms marketing products in the family car segments have become considerably more successful at avoiding the effects of intra-firm competition.

Tax principles, product differentiation and the nature of competition

We analyze the choice between the origin and destination principles of taxation when there is product differentiation and Bertrand competition. If taxes are redistributed to consumers and demand is linear the origin principle dominates the destination principle whatever the degree of product differentiation and extent of economic integration. With nonlinear demand the origin principle dominates if there is sufficient economic integration. When the social value assigned to tax revenue is higher than the private value, the destination principle dominates for intermediate values of product differentiation and economic integration. The same results are also shown to hold with Cournot competition.

Prizes for modernity in the provinces: The Arts Council’s 1950-1951 regional playwriting competition

As part of its contribution to the 1951 Festival of Britain, the Arts Council ran what can be seen in retrospect to be an important playwriting competition. Disregarding the London stage entirely, it invited regional theatres throughout the UK to put forward nominations for new plays within their repertoire for 1950-1951. Each of the five winning plays would receive, what was then, the substantial sum of £100. Originality and innovation featured highly amongst the selection criteria, with 40 per cent of the judges’ marks being awarded for “interest of subject matter and inventiveness of treatment”. This article will assess some of the surprising outcomes of the competition and argue that it served as an important nexus point in British theatrical historiography between two key moments in post-war Britain: the first being the inauguration of the Festival of Britain in 1951, the other being the debut of John Osborne’s Look Back in Anger in May 1956. The article will also argue that the Arts Council’s play competition was significant for two other reasons. By circumventing the London stage, it provides a useful tool by which to reassess the state of new writing in regional theatre at the beginning of the 1950s and to question how far received views of parochialism and conservatism held true. The paper will also put forward a case for the competition significantly anticipating the work of George Devine at the English Stage Company, which during its early years established a reputation for itself by heavily exploiting the repertoire of new plays originally commissioned by regional theatres. This article forms part of a five year funded Arts and Humanities Research Council (AHRC) project, ‘Giving Voice to the Nation: The Arts Council of Great Britain and the Development of Theatre and Performance in Britain 1945-1994’. Details of the Arts Council’s archvie, which is housed at the Victoria & Albert Museum in London can be found at http://www.vam.ac.uk/vastatic/wid/ead/acgb/acgbf.html Keywords: Arts Council of Great Britain, regional theatre, playwriting, Festival of Britain, English Stage Company (Royal Court) , Yvonne Mitchell

Comparing hypotheses about competition in the food system

A procedure is presented for comparing hypotheses about competition that makes no parametric assumptions about cost and demand functions, can be implemented with a modicum of data, and relies on Bayesian comparisons of non-nested hypotheses. The methodology is applied to data on five of the major U.S. food industries