Possibilities of Application of the Index Concentration of Linda in Small Economy, Example of Serbian Food Industries

Bukvić, Rajko; Pavlović, Radica; Gajić, Aleksandar

doi:10.15660/auofmte.2014-3.3070

Cited by 4 publications

(3 citation statements)

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“…2. Then we calculate HHI to analyze those markets where dominance was not automatically detected (Bukvić et al 2014). a.…”

Section: Methodsmentioning

confidence: 99%

“…Therefore, we will identify such cases using the Herfindahl-Hirschman Index (HHI): if there is one leader with a high market share, then HHI will show a high concentration of the market, and we will analyze it separately. As a rule, in all countries, an indicator of less than 1000 is considered the indicator of low concentration of markets, and over 2000 (in the U.S. over 2500) is a sign of high concentration (Bukvić et al 2014). When using this index, it is important to remember that it is calculated only on the basis of the market shares of the players in question, without taking into account other competitive parameters (price, etc.…”

Section: Methodsmentioning

confidence: 99%

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Individual insurance products: is there a real choice for Russians?

Shchelokova¹,

Vertogradov²

2023

POPECON

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The article analyzes the level of competition of insurance product offerings in the following four markets using the Russian market as an example: (1) life insurance, (2) accident and disease insurance, (3) voluntary health insurance and (4) pension insurance. The purpose of the study is to assess competitive dynamics in the insurance product markets during the period under review. Relevant data of the Expert Rating Agency for 2018-2021 were used as the study basis. The study methodology is based on the assessment of the competitive situation using the SV matrix, which is based on HTSV (level of differentiation within the dominant group) and CRSV (cumulative market share of the dominant group). The study shows that the Russian insurance market in 2018-2021 was quite diverse in terms of dominance. Most individual insurance products belong to the B4 quadrant of the SV matrix (a natural oligopoly), yet, the situation with the dominant group regarding types of insurance under study is significantly different, since the number of dominant players varies from 2 to 10, considerably affecting a real consumer choice, however, among the markets under study, there is none with low concentration or without a dominant group or dominant leader. In the VHI market, the choice is quite large, while the presence of a big dominant group of eight companies suggests formation of the two-tier companies. The top echelon sets quality standards and dominates by price, while other companies can compete with the leaders due to niche offerings and price factors. The pension insurance market is an example of a significantly reduced consumer choice: in 2018, it is in the RO quadrant with a relatively “weak” dominant group, while by 2021, a hardly differentiated oligopoly of 5 companies has been formed, controlling 95% of the market. Emerging players with the market and institutional opportunities similar to SOGAZ make significant changes in the market structure, as in the case of personal insurance market, wherein SOGAZ has absorbed the largest player, transferring the market from an oligopoly of seven companies to the actual dominance of the one.

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“…2. Then we calculate HHI to analyze those markets where dominance was not automatically detected (Bukvić et al 2014). a.…”

Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Individual insurance products: is there a real choice for Russians?

Shchelokova¹,

Vertogradov²

2023

POPECON

View full text Add to dashboard Cite

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“…Если HHI больше 2500 или находится в пределах от 1000 до 2500, то следует обратить внимание на данный рынок с точки зрения наличия на нем доминирующей группы. Инструмент, который будет применяться для этого -матрица SV (Strength / Variety) [14], для построения которой размер доминирующей группы определяется с помощью индекса Линда [15,16]. Доминирование считается выявленным, когда индекс Линда прекращает убывание.…”

Section: материалы и методыunclassified

Analysis of competition and the level of dominance in the antidiabetics market of Russia

Markov

2023

Medicinskij sovet

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Introduction. Amid reports of a growing number of diabetic patients, the antidiabetics market players positioning is highly important for companies and the country’s leadership. The regulatory measures and management decisions depend on the competitive situation in the market.Aim. Analysis of the changes in the level of dominance on the markets for antidiabetics and blood glucose monitors and meters.Materials and methods. The distribution of these markets by product groups, as well as by commercial and public procurement segments has been taken into account. The Herfindahl-Hirschman and Linda indices, the adjusted Hall-Tideman index, concentration ratios and the SV matrix (strength/variety) were used as analysis tools, and the calculations were made on the basis of IQVIA data for the period from 2004 to the 3rd quarter of 2022.Results. The dominance of three foreign companies that fell into the B4 and G quadrants was detected in the insulin and insulin analogues market. The glucose-lowering drugs market is the most competitive, it fell into the RO quadrant more often than other markets, and the dominant group, depending on the segment, included foreign and domestic companies with different frequency. The dominance of both three foreign and one Russian companies in the B4 and G quadrants, as well as a larger number of companies, was identified in the market for other alimentary tract and metabolism products. Several foreign and one Russian company that were identified into the B4 and G quadrants steadily dominated in the markets for blood glucose test strips, glucose monitors and meters and accessories, and lancets.Conclusions. The antidiabetics market is highly concentrated in its segments. The results show the historical development of the studied markets, the role of the commercial and public procurement segments in them, and serve as the foundation for studying the impact of environmental events on the Russian antidiabetics market.

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The Possibility of Identifying Alpha-Companies by Statistical Methods on the Example of the ExpressLogistics Market In Russia

Vertogradov

2022

Mir novoj jekonomiki

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The article attempts to evaluate the use of the conventional statistical apparatus to identify alpha companies in the Russian express logistics market. According to the theory of economic dominance, Alpha-companies occupy dominant positions in industry markets due to access to the cheapest resources and institutional advantages that allow them to build barriers to other players. Identification of such companies has traditionally been carried out by an expert method, including based on insider information, not available to external market players. The author describes the traditional tools used to identify the dominant market players [concentration indices (CR), Lind (L) and Herfindahl-Hirschman (HHI)], made calculations based on official statistics, data from open ratings and other available benchmarks for the express delivery industry in Russia, as well as a comparison with the results of determining alpha companies by an expert method. The author formulated hypotheses to explain the reasons for situations when companies with dominant capabilities are not interested in realizing their potential in a small market. Additionally, the author used some assumptions about the role of institutions regulating the market in case of sharp changes in market conditions.

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Possibilities of Application of the Index Concentration of Linda in Small Economy, Example of Serbian Food Industries

Cited by 4 publications

References 0 publications

Individual insurance products: is there a real choice for Russians?

Individual insurance products: is there a real choice for Russians?

Analysis of competition and the level of dominance in the antidiabetics market of Russia

The Possibility of Identifying Alpha-Companies by Statistical Methods on the Example of the ExpressLogistics Market In Russia

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