Phytosterol is a healthful ingredient that helps reduce blood cholesterol levels. It has been over ten years since the first phytosterol-enriched product, Benecol margarine, was launched in Finland in 1995; however, understanding of this product is still limited. In addition, it has been shown in the literature that health-related concerns have an influence on consumers’ decisions to consume harmful or beneficial ingredients. This study estimates the demand for three phytosterol-enriched products in the categories of margarine, orange juice and yogurt. The objectives of this study are (1) to estimate price and expenditure elasticities for phytosterol-enriched brands and comparative non-phytosterol brands, (2) to identify cannibalization effects with a proposed methodology, and, (3) to estimate the welfare effects associated with the introduction of a product. Subsuming LA/AIDS, Rotterdam, CBS and NBR demand systems, the Barten synthetic demand system is applied to margarine weekly scanner data. Phytosterol-enriched margarine brands (Benecol and Take Control) commanded significantly higher prices relative to other margarine brands. Strong substitutability among the phytosterol brands was evident as suggested by the statistically significant and relatively large compensated cross-price elasticities. Cannibalization is defined as the competition between products offered by the same firm. Cannibalization studies are important to multi-product firms because they provide insights into the benefits of offering product variety. In addition, the identification and assessment of cannibalization are integral factors for strategic decisions of new product introductions. However, there are no standard measures to identify its effects. We use the Barten synthetic demand system along with two conventional measures to illustrate that the use of cross-price elasticities derived from a flexible demand system is a viable alternative to identify cannibalization effects. The third objective analyzes the consumer welfare effects associated with a new functional food product introduction. Using the Barten synthetic model and pre- and post-introduction scanner data, we estimate direct price and variety effects associated with the introduction of a new functional food product (i.e., phytosterol-enriched product). With post-introduction data and an assumed demand structure, we also estimate indirect price effects. Our results suggest notable welfare effects consisting of a relatively small price effect and a large variety effect.

Article 82 is traditionally analysed as a tool to integrate and liberalise the European Single Market and to protect competition from distortion. As such there is no comprehensive discussion of the tensions that lie at the centre of the objective of protecting competition in the current rethinking of Article 82. With regard to exclusionary abuses, DG Competition has articulated that the main objective of Article 82 is the protection of competition in the market as a means of enhancing consumer welfare and of ensuring an efficient allocation of resources. This statement may conflict with some of the case law protecting the economic freedom of the market players derived from ordoliberalism. The latter is a well respected German legal tradition that holds both that government needs to be restrained from abuse of power, and that the free market has its limits. Economic rights deserve protection and vigilance is needed to ensure economic power is not misused or abused, not only in the interests of consumer welfare, but also in the interests of the economic liberty of the individual. This thesis considers the tension between the goals of protecting economic freedom and the promotion of consumer welfare in the application of Article 82. Presupposing that economic freedom and consumer welfare are in opposition to one another, such tension is only set to intensify and must be given appropriate weight in considering the extent to which DG Competition can or should try to move to a consumer welfare standard. Changing the interpretation of protection of competition from economic freedom to consumer welfare within Article 82 can undermine a fundamental right if economic freedom is considered a fundamental right in the Community legal order. However, consumer welfare can also be seen as an opportunity, if properly debated or agreed to by the ECJ, to adopt a more economics-based approach to Article 82.

Thesis advisor: Michael Barry / This paper will study the effects of airline alliances on the economic welfare of passengers and airlines by studying how membership in an airline alliance affects ticket price, revenue passenger miles, and available seat utilization. This paper will analyze three sets of data from the US Department of Transportation, including the DB1BTicket Report, the T-100 International Segment Report, and the T1: US Air Carrier Traffic and Capacity Summary by Service Class. The purpose of this paper is to determine how airline alliances effect consumer welfare. The results show that airline alliances lead to higher fares on domestic routes as well as greater passenger revenue miles and available seat utilization. This paper shows that more anti-trust investigation should be taking place regarding airline alliances. / Thesis (BS) — Boston College, 2011. / Submitted to: Boston College. Carroll School of Management. / Discipline: College Honors Program. / Discipline: Finance.

Doctor of Philosophy / Department of Agricultural Economics / Timothy J. Dalton / Economic indicators (price, income, taste, and preference) and non-economic (information, time and equipment, food quality and safety) indicators are key elements of the food environment that need further investigation in developing countries.The main objective of this thesis is to evaluate the effect of these factors on consumer behavior in West Africa, especially in Niger and Burkina Faso. The first essay analyzes the implications of world cereal price shocks on rural household welfare in Burkina Faso by establishing a link between farmers and world markets. The approach is grounded in agricultural household modelling with the world price for cereals, transmitted to farmers, through local producer and consumer prices. Household net welfare after a price shock is derived as a function of behavioral responses to local price change induced by the international price shock.The main result of this analysis is that the increase in prices during the period from 2006 to 2014 is translated to welfare improvement ranging from 0.02 percent for 2006 to 0.06 percent for 2011 for farmers in Burkina Faso. The second essay assesses urban consumers' preference for food quality attributes of value-added cereal products in Niamey, Niger. It combines qualitative and quantitative methods to evaluate the effect of quality attributes on consumers' food choice. A particular focus is placed on assessing consumers' marginal willingness-to-pay (WTP) for quality attributes in an experimental setting. The evaluation accounted for taste and preference heterogeneity inherent to consumers’ responses to changes in quality attributes. The results suggest market demand inferred from significant marginal WTP for the nutritional quality attribute as measured by the expiration date, the presence of micronutrients, and the country of origin of the product. In addition, demand is found to be highly heterogeneous across consumers socio-demographic and economic characteristics. As a result, better communication and appropriate targeting by food processors and policymakers could be an additional tool to enhance food quality and diet through the market. Finally, the third essay theoretically and empirically assesses the impact of a time-saving food attribute on consumer’s food choice in urban areas of Niger. The theoretical assessment relied on a ``Beckerian’’ time allocation model to derive how a time-saving food product affects consumers' utility and food choice. The empirical approach combines hedonic tasting, random utility and a latent class framework to identify taste heterogeneity patterns underlying consumers' choice. Both the hedonic and latent class models confirm the theoretical prediction that a time-saving characteristic can either increase or decrease the demand for food that embodies the attributes. A significant market segment of about 38% includes consumers with a positive valuation of the time-saving product, highlighting the potential of this attribute to increase consumers welfare, reduce energy use and prevent food preparation-related health issues.

This thesis consists of four self-contained papers related to the Nordic electricity market. Paper [I] examine how the reform of the Nordic electricity markets has affected competition in the electric power supply market, Nord Pool. The question is if the common power market has been competitive or if electric power generators have had market power during the period 1996 -2004. Moreover, since there was a stepwise evolution from national markets to a multinational power market, we also ask how the degree of market power has evolved during this integration process. The results show that electric power generators have had a small, but statistically significant, degree of market power during the whole period.  However, studying the integration effect, i.e. how the market power has been affected by additional countries joining Nord Pool, it show that the degree of market power has been reduced and finally vanished as the market has expanded and more countries joined the collaboration. Paper [II] analyse how the deregulation of the Swedish electricity market has affected the price of electric power and how the change in electric power price, in turn, has affected consumers’ welfare. The result shows that the change in pricing principle of electric power following the deregulation has increased consumer welfare over the period studied (1996-2006), with welfare gains about 100 SEK per customer per year, indicating a three per cent welfare gain for the average customer. Paper [III] study whether (and to what extent) the multinational electricity market integration has affected the price dynamics at the Nordic power exchange. The results shows that a larger electricity market seems to reduce the probability of sudden price jumps, but also that the effect on volatility seem to depend on the characteristics, i.e. production structure, of the integrated markets. In Paper [IV] a two-stage study is conducted to investigate the extent to which shocks in the demand and supply for electricity translate into price jumps, and the extent to which this process is affected by the prevailing market structure. The main findings from the study is that whether demand and supply shocks translate into price jumps largely depends on the prevailing market structure, i.e. on how far the market works from capacity constraints. A notable feature of the empirical analysis is also that the marginal effects from positive demand and negative supply shocks on the jump probabilities are mostly insignificant and of small magnitude.

Magister Legum - LLM / Trade liberalisation, free-market system, privatisation and deregulation have become major steps taken by individual countries to accelerate economic growth. This trend has made competition law and its enforcement institutional framework pivotal, especially so with the advent of the African Continental Free Trade Agreement (AfCFTA). A liberalised trade and a free market system without effective machinery to checkmate the activities of market participants would invariably give rise to anti-competitive practices such as monopolies, abuse of dominant position, cartels, and vertical restraints. These anti-competitive practices have an adverse effect on trade. Sierra Leone has made commitment to liberalise its market space, deregulating and developing the private sector to accelerate economic growth. This goal would be challenging, without an extant competition law statute and an independent enforcement institutional framework to address anti-competitive practices in the country.

In this dissertation three essays were presented. In the first two essays we measure the consumer welfare changes caused by U.S. meat price changes. In the third essay the dynamic structure of international gasoline prices using the time series methodology is investigated. In chapter II, we investigate the U.S. consumer behavior on meat consumption depending on a linear expenditure system (LES), and then we simulate the welfare effects of a set of price changes on the U.S. meat consumption. The simulation results show that the amount of consumer welfare change for each meat is not same across the meats under the same percentage change of price. The simulation results also show that when all the prices are doubled the total amount of CV reaches almost the same amount of current total quarterly expenditures for the three meats. In chapter III, we apply the compensating variation (CV) approach for the measurement of consumer welfare losses associated with beef price changes. We applied the long-run cointegrating relationship in vector error correction model (VECM) to estimate the Marshallian demand function. Apparently, the use of long-run cointegration in VECM in deriving the direct Marshallian demand function to measure the consumer welfare change is the first attempt in the literature. This is one of the contributions of the study. The simulation results show that the amount of consumer welfare change for beef is compatible with the one derived from LES methodology. In chapter IV, an empirical framework to summarize the interdependence of four international gasoline markets (New York, U.S. Gulf Coast, Rotterdam and Singapore) is presented. For that purpose, we employ a structural VECM and directed acyclic graphs (DAGs). To solve the identification problem in structural VECM, we apply DAGs derived from contemporaneous VECM innovations. The impulse response functions show that the time period in which a shock in a market affects the other market is very short. Forecast error variance decompositions (FEVD) shows that in all markets, except the U.S. Gulf Coast market, current and past shocks in their own market explained the most of the volatility in their own market in the Short-run.

Network Sharing and Standard Essential Patents in EU Competition Law Abstract This diploma thesis deals with two issues which are closely linked to telecommunications and its specific features - network sharing and standard essential patents. Actually, these issues are very topical and come out at the forefront of EU competition authorities. The goal of this diploma thesis is to familiar the reader with particular issues and then analyse individual decisions of Commission and CJEU regarding aforementioned topics from the perspective of consumer welfare as one of the main objectives of EU competition law. Therefore, the first part of the thesis provides definition of consumer welfare standard so that the analysis of particular decisions could be performed. The second part of this thesis deals with network sharing. Given the complicacy of this topic, there are defined the individual models and presented some actual cases of network sharing in EU at the beginning of this part. Subsequently, the thesis deals with the interrelationship between telecom mergers and network sharing. After these introductory remarks, the individual decisions of Commission are analyzed. This part is finally concluded with a partial conclusion which summarizing the main outputs arising from performed analysis. The third part of the...

The submitted work concerns itself with the topic of protection of consumers and their welfare as an objective of the EU competition policy, as well as with the regulation of EU competition law and the way in which this objective has changed over time, both in fact and in legal perception. The first, theoretical, part of this thesis explains concepts essential for this analysis - the concept of "consumer" and its specifics in the context of the EU competition law, the definition of "consumer welfare" and the general relationship between consumer protection law and competition law. The second part deals with the historical development of consumer protection as an objective of EU competition policy. Particular attention is paid to the progress made in understanding the importance of this objective over time. An emphasis is placed on it in the political declarations of the Commission's representatives and subsequently, whether and how these political declarations and efforts were reflected in the actually adopted documents of competition law. This section therefore analyses the processes that formed the ideological basis for consumer protection under competition law and how they were reflected in formal sources of law. Although, at the doctrinal and political level, the parameter of consumer protection and...

Heterogeneous consumers make the decision to buy a durable good or to download a replica, and a monopolist chooses to price and protect their intellectual property in the form of an authentication cost. An optimal price and authentication cost is derived, and shown to be higher than the efficient outcome for a uniform distribution of consumers. The optimal selection of price and protection are shown to be commensurate with his authenticating technology, and the searching ability of consumers. As an extension, a layout for a monopolist problem where consumers have different searching abilities is shown to be indistinct from a homogeneous case when consumers are uniformly distributed.