The product market competition has become a global challenge for business organizations in the challenging and competitive market environment in the influx of the COVID-19 outbreak. The influence of products competition on organizational performance in developed economies has gained scholars’ attention, and numerous studies explored its impacts on business profitability. The existing studies designate mixed findings between the linkage of CSR practices and Chinese business firms’ healthier performance in emerging economies; however, the current global crisis due (...) to the coronavirus has made product market completion fierce, which ultimately affects business firms’ performance. This study focuses on this logical global challenge, investigates the rationale, and examines product-market completion impact on firms’ performance operating in the Chinese markets. The study collected data from the annual reports of Chinese business organizations with A-share listing and registered with the database of China Stock Markets and Accounting Research. The study employed a Generalized Method of Moment technique and investigated the connection between product market competition and Chinese firm performance. The empirical analysis of this study highlights the conclusion that market competition positively and significantly affected business firms’ performance. This study specified that product market competition play a dynamic and indispensable role in achieving healthier firm performance in the Chinese markets. This study provides valuable insights on practical implications and future research directions for the scholars to draw interesting results with new study models. (shrink)

The target article by Baumard et al. uses their previous model of bargaining with outside options to explain fairness and other features of human sociality. This theory implies that fairness judgments are determined by supply and demand but humans often perceive prices (divisions of surplus) in competitive markets to be unfair.

How much inequality does market interaction generate? The answer to this question partly depends on the level of competition among economic agents. Yet, in their normative analysis of the market, theories of distributive justice focus on individual characteristics such as talents as determinants of income, and tend to ignore structural features such as competition. Economists, on the other hand, dispose of the conceptual tools to assess the distributive impact of competition, but their analysis is usually (...) limited to allocative efficiency. Part I of the article distinguishes my argument from conventional perspectives on income inequality and redistribution. Whereas the latter propose either to redistribute income once the market interaction has taken place or to adjust the initial holdings of market participants, I focus on the distributive impact of the institutional structure of the market itself. Part II outlines the ways in which various forms of competition affect distribution. My objective here is descriptive in nature, but shows that a normative evaluation of the market has to take seriously the distributive impact of competition. This impact can be broken down into the analysis of three overlapping groups of economic agents, namely consumers, workers, and capital owners. Consumers potentially gain from competition in the form of lower prices, but these gains are only realized if competition does not put pressure on their work income at the same time. Unless competition squeezes profits unusually hard, capital owners tend to benefit from competition. (shrink)

Does product market competition (PMC) promote or reduce firms’ corporate social responsibility (CSR) behavior? While some studies suggest that CSR is a differentiation strategy that leads to a positive relationship between PMC and CSR, others consider CSR a discretionary cost that firms in competitive markets should avoid. Drawing on instrumental stakeholder theory and research on organizational attention, we aim to clarify the extent to which CSR provides a competitive advantage for firms by exploring how different types of stakeholder (...) attention—both between different stakeholder groups and within a specific stakeholder group—affect the PMC–CSR relationship. We test our framework using data on Chinese private (i.e., non-state-owned) companies on major Chinese stock exchanges from 2008 to 2017. Overall, our analyses highlight that stakeholder attention affects how firms assess the tension between the benefits and costs of CSR and that the contingent effect of different stakeholder attention varies within and between stakeholder groups. (shrink)

Is it a requirement of justice to democratize private companies? This question has received renewed attention in the wake of the financial crisis, as part of a larger debate about the role of companies in society. In this article, we discuss three principled arguments for workplace democracy and show that these arguments fail to establish that all workplaces ought to be democratized. We do, however, argue that republican-minded workers must have a fair opportunity to work in a democratic company. Under (...) current conditions, this means that a liberal order must actively promote workplace democracy. (shrink)

Companies will prioritize external corporate social responsibility (CSR) practices over internal ones, a phenomenon known as the corporate social responsibility gap (CSR gap). Previous studies have mostly focused on its consequences, little is known about its antecedents. We argue that such practice is illegitimate because it goes against stakeholder expectation that primary stakeholders' interests should be prioritized, but it also has potential to gain differentiation benefit for intense investment on external CSR. Drawing on compensatory orchestration logic and the three types (...) of firm legitimacy, we argue that firms that have gained high pragmatic legitimacy are more likely to engage in morally illegitimate but differentiation gaining activities such as CSR gap. Using financial distress to indicate low pragmatic legitimacy, we predict that distressed firms are inclined to practice low CSR gap. Considering the competing logics in China, we further argue that this negative relationship will be less pronounced if firms are state-owned or operating in a competitive industry. Using Chinese listed firms from 2010 to 2019 as an empirical sample, the results provide support for our arguments. (shrink)

In four new and nine previously published essays, Joseph Heath provides a compelling new framework for thinking about the moral obligations of economic actors. The "market failures" approach to business ethics that he develops provides the basis for a unified theory of business ethics, corporate law, economic regulation, and the welfare state.

Business Ethics, the Environment & Responsibility, EarlyView.

World’s Internet market is dominated by the companies based in United States, but fast growing Chinese companies try to challenge them, and already took the second position. Their success is based on economies of scale and network effects gained thanks to their operations in the Chinese market. This two strategic advantages enable Chinese companies to successfully compete in the global Internet market. Research presented in this paper positively verifies hypothesis that PRC authorities contribute to the success of (...) its companies through discriminatory practices, that do not allow foreign corporations to expand their operations in the Chinese market. (shrink)

This 2000 text applies modern advances in game theory to the analysis of competition policy and develops some of the theoretical and policy concerns associated with the pioneering work of Louis Phlips. Containing contributions by leading scholars from Europe and North America, this book observes a common theme in the relationship between the regulatory regime and market structure. Since the inception of the new industrial organization, economists have developed a better understanding of how real-world markets operate. These results (...) have particular relevance to the design and application of anti-trust policy. Analyses indicate that picking the most competitive framework in the short run may be detrimental to competition and welfare in the long run, concentrating the attention of policy makers on the impact on the long-run market structure. This book provides essential reading for graduate students of industrial and managerial economics as well as researchers and policy makers. (shrink)

Corporate reputation is an intangible asset that is related to marketing and financial performance. The social, economic, and global environment of the 1990'shas resulted in environmental performance becoming an increasingly important component of a company'sreputation. This paper explores the relationship between reputation, environmental performance, and financial performance, and looks at the contingencies that impact environmental policy making.

Until Joseph Heath came along, philosophical business ethics was in a bad way. To the extent it’s still in a bad way, perhaps it’s because Heath has had insufficient influence. Before Heath, much of the debate in the field was between two major theories—stockholder and stakeholder theory. Both of these theories are either false, or vacuous and empty, depending on the interpretation. Heath has to some degree rescued the field by providing what is perhaps the only good general theory of (...) business ethics, which Heath calls the Market Failures Approach. (To be clear, there is some good casuistical work in business ethics, but the Market Failures Approach is perhaps the only good general theory of.. (shrink)

When the assertion that some agent is exploiting a person connotes that the exploitation is morally wrong, what is this wrong? Some maintain that exploitation need not involve unfair division of advantages, but instead is essentially domination for self-enrichment. This essay denies this claim and upholds the idea that exploitation claims concern unfair distribution. Some maintain that the hypothetical fully competitive market exchange price can serve, at least in some contexts, as the standard for assessing whether voluntary interaction is (...) exploitative. This essay denies that the idea of the fully competitive market price can serve in this role. Nor should we accept a pure luck egalitarian claim that would identify fair distribution with the outcome of ideally competitive markets proceeding from fair initial distribution. (shrink)

The ‘marketplace of ideas’ is an influential metaphor with widespread currency in debates about freedom of speech. We explore a number of ways competition between ideas might be described as occurring in a marketplace and find that none support the use of the metaphor. We suggest that an alternative metaphor, that of the ‘garden of ideas’, may offer more productive insights into issues surrounding the regulation of speech.

This paper explores the theory and illustrates the managerial implications of complete and incomplete markets for corporate strategy and corporate socialresponsibility. Market imperfections including externalities, asymmetric information or compromised competition motivate corporate social responsibility. At the same time, traditional approaches to corporate strategy based on industry analysis may imply exploiting or sustaining market imperfections. Assuming markets are complete complicates finding a theoretical basis for happily uniting CSR and above average profits. Assuming markets are incomplete undermines traditional industry (...) analysis or resource-based approaches to corporate strategy because incomplete markets hinder accurate calculation of the net present value of different resource commitments. Cases illustrate how theories of firm performance based on incomplete markets provide a new managerial framework to guide strategy and improve social welfare. (shrink)

Consequentialist reasoning and neoclassical assumptions about perfectly competitive markets encourage business school faculty and students to overlook the role of ethics in a market system. In a perfectly competitive economy, self-interest suffices to bring about a desirable outcome. However, discrepancies between an economist''s assumptions and the realities of a market economy establish a need for business ethics. This essay, written as a lecture for MBA students, first reviews Pareto optimality as an argument in favor of market allocations. (...) It then uses the discrepancies between actual and hypothetical markets to derive a Rawlsian duty of civility. This neoclassical case for business ethics requires individuals to avoid exploiting the defects that are inevitable in any social structure. (shrink)

In “The Responsibilities and Role of Business in Relation to Society,” Nien-hê Hsieh challenges Joseph Heath’s “market failure” or Paretian approach to business ethics by arguing for a “Back to Basics” approach. Here, I argue that two basics of Hsieh’s three-basics vision are flawed, because a. ordinary morality is in fact not sufficient for the adversarial realm of the market, and b. the ideal of a Pareto-optimal market economy with perfect competition does in fact provide an (...) adequate basis for normative rules against market failures. (shrink)

The E.U. is shortly before implementing the Digital Markets Act (DMA), which aims to regulate digital markets and (ideally) rein in the power of big tech gatekeepers. Several researchers claim that this proposal – and especially its goal to ensure the contestability and fairness of digital markets – is ordoliberal in nature, yet what is missing in the academic literature is a closer look at the parallels (and differences) between the E.U.’s competition policy (and the DMA) and ordoliberalism. This (...) paper tries to close the gap and help answer the question of whether the DMA is indeed standing in an ordoliberal tradition. Furthermore, it evaluates the Act’s institutional strengths and weaknesses – as seen from an ordoliberal perspective – and points out potential ways to strengthen E.U. competition policy (and the DMA) and bring it closer to the ordoliberal ideal. (shrink)

Economic explanations of inequality in liberal economies often appeal to social norms. This article argues that recent economic policies and institutional interventions, in favor of deregulation and away from participatory practices in both the political and economic spheres, have elicited norms that increasingly resemble those of the economic theory that has informed these interventions. This has altered the social ethos in an inegalitarian direction—individuals are more likely to conceive of themselves as acquisitive maximizers in their daily life, and there has (...) been a reduction in the number of institutional settings for people to deliberate on their values, commitments, and other priorities. (shrink)

The debate on the influence of markets on virtues has focused on two opposite hypotheses: the doux commerce thesis and the self-destruction thesis. Whereas the doux commerce hypothesis assumes that capitalism polishes human manners, the self-destruction hypothesis holds that capitalism erodes the moral foundation of society. This paper will develop a more balanced position by using the virtue ethics developed by Aristotle, which distinguishes several virtues. The research will focus on the question for which virtues the doux commerce or self-destruction (...) thesis is likely to hold. An extensive literature survey shows that market competition tends to stimulate diligence, crowd out temperance, generosity, and sociability, and stimulate envy. The effect on other virtues – i.e. courage, high-spiritedness, justice, and prudence – is ambiguous. (shrink)

This essay challenges the view that the provision of health care must take place within a competitive-free system. The author argues that, presuming that there is a requirement to meet the demands of those who cannot pay for health care, a competitive market provides a good way to deal with injustices within the health care system. The author concludes that the demands for justice are best met when indigent individuals use some portion of the funds they receive from the (...) government to purchase one of the many competing forms of health care. This scheme requires a competitive market in the delivery of health care. (shrink)

ABSTRACTThis paper focuses on the representation of the notion of employability and the job-seeking ‘reality’. It is part of a wider research project that looks closely into the careers services se...

This paper addresses Joseph Heath’s attempt to derive moral obligations from the conditions that are specified by the model of the perfectly competitive market. Through his market failures approach to business ethics he argues that firms should behave as if they are operating in a perfectly competitive market. However, I argue that this derivation of moral obligations runs counter to the metaethical principle that moral actions need to be voluntarily chosen from a set of alternatives. To the (...) extent that Milton Friedman’s derivation follows the same lines, my objection is also applicable to his approach to business ethics. I bring out the fact that the conditions required by the model of the perfectly competitive market cannot be realized in the actual world and argue that this causes problems for any moral obligations that might follow. My objection is illustrated by an intuitive example of someone set to an impossible task. I also bring in a way that Heath could work around this objection, but I argue that this would imply the collapse of his approach into another kind of theory that he wishes to distinguish himself from. More deeply, I show that my metaethical objection has epistemological consequences that undermine the very basis of the model of the perfectly competitive market. I conclude by stating that we need a different conception of competition, pointing to the facts that such a perspective would need to take into account, and suggesting that the concept of rivalry is up to the job. (shrink)

We describe a first experiment on whether product complexity affects competition and consumers in retail markets. We are unable to detect a significant effect of product complexity on prices, except insofar as the demand elasticity for complex products is higher. However, there is qualified evidence that complex products have the potential to induce consumers to buy more than they would otherwise. In this sense, consumer exploitability in quantities cannot be ruled out. We also find evidence for shaping effects: consumers’ (...) preferences are shaped by past experience with prices, and firms may in principle exploit this to sell more. (shrink)

Journal Name: SATS Issue: Ahead of print.

While competition has become increasingly fierce in organizations and in the broader market, the research on competition at an individual level is limited. Most existing research focuses on trait competitiveness. We argue that employee competitiveness can be state-like and can be demonstrated as an attitude toward and behavior representative of competition. We therefore propose a dynamic model with two separate components: competitive attitude and competitive behavior. Drawing upon self-determination theory and the person-environment interaction perspective, we examine (...) how employee competitive attitude and competitive behavior can be influenced by both personal characteristics and team climate, which in turn leads to different work outcomes, as demonstrated in two studies. Study 1 developed measures for competitive attitude and competitive behavior. Study 2 collected data from salespeople in a large insurance company in three waves. The results showed that employee competitive attitude and behavior could be predicted by personality. Moreover, employee competitive attitude and behavior were related to sales performance in differential ways via job crafting, and these mediated relationships could be moderated by team climate. These findings support the two-component dynamic model combining competitive attitude and behavior, which helps promote understanding of the dynamics of competition and its consequences at the individual level. Theoretical and practical implications are also discussed. (shrink)

A legal system is any institution or set of institutions in a given society that provides dispute resolution in a systematic and reasonably predictable way. it does so through the exercise of three functions: the judicial, the legislative, and the executive. The judicial function, the adjudication of disputes, is the core of any legal system; the other two are ancillary to this. The legislative function is to determine the rules that will govern the process of adjudication (this function may be (...) merged with the judicial function, as when case law arises through precedents, or it may be exercised separately), while the executive function is to secure submission (through a variety of means, which may or may not include violence) to the adjudicative process and compliance with its verdicts. A government or state (for present purposes i shall use these terms interchangeably) is any organisation that claims, and in large part achieves, a forcibly maintained monopoly, within a given geographical territory, of these legal functions, and in particular of the use of force in the executive function. now the market anarchist objection to government is simply a logical extension of the standard libertarian objection to coercive monopolies in general.1 First, from a moral point of view, among people regarded as equals2 it cannot be legitimate for some to claim a certain line of work as their own privileged preserve from which others are to be forcibly excluded; we no longer believe in the divine right of kings, and on no other basis could such inequality of rights be justified. Second, from an economic point of view, because monopolies are insulated from market competition and hold their customers by force, they lack both the information and the incentive to provide consumers with fair, efficient, and inexpensive service. The anarchist accepts these arguments, and merely asks why they should apply with any less force to the provision of legal services. (shrink)

In defense of his Market Failures Approach to business ethics Joseph Heath relies on an understanding of business as essentially oriented towards competition and profit maximization. In these remarks I defend an alternative understanding of business that is centered on the creation of valuable goods and services. It is preferable because it: (a) creates less pressure to take advantage of vulnerable stakeholders, (b) can readily recognize “beyond compliance” norms that do not relate to efficiency, (c) provides a more (...) meaningful framework for people who work in and with corporations, (d) may mitigate negative moral impacts outside the market, and (e) better captures the range of what actually counts as business activity. (shrink)

Why do marketing managers in the transitional economies of Eastern Europe and China often engage in competitively irrational behavior, choosing pricing strategies that damage competitors’ profits, rather than choosing pricing strategies that improve their firm’s profits? We propose one possible reason, the moral vacuum created by the collapse of communist ideology. We hypothesize and find that managers who experienced formal communist moral ideological indoctrination are less likely to be competitively irrational than the post-communist managers who did not. Implications are discussed.

Neoclassical and Austrian/evolutionary economic paradigms have different implications for integrating corporate social responsibility (corporate citizenship) and competitive strategy. porter's "Five Forces" model implicitly rests on neoclassical theory of the firm and is not easily reconciled with corporate social responsibility. Resource-based models of competitive strategy do not explicitly embrace a particular economic paradigm, but to the extent their conceptualization rests on neoclassical assumptions such as imperfect factor markets and profits as rents, these models also imply a trade-off between competitive advantage and (...) corporate social responsibility. Differences in Austrian/evolutionary economic model's assumptions about equilibrium, profits, and other economic concepts allow this paradigm to embrace alternative views of strategy such as the activities or dynamic capabilities views. These alternative views of strategy focus on learning and adaptation; they align more easily with corporate social responsibility. In practice this alignment comes about because social engagement facilitates the learning and adaptation that are a source of competitive advantage. Among the many business arguments for CSR such as improved employee morale/productivity or brand differentiation, this view prioritizes innovation. (shrink)

I study a market model in which profit-maximizing firms compete in multidimensional pricing strategies over a consumer, who is limited in his ability to grasp such complicated objects and therefore uses a sampling procedure to evaluate them. Firms respond to increased competition with an increased effort to obfuscate, rather than with more competitive pricing. As a result, consumer welfare is not enhanced and may even deteriorate. Specifically, when firms control both the price and the quality of each dimension, (...) and there are diminishing returns to quality, increased competition implies an efficiency loss which is entirely borne by consumers. KEYWORDS. Bounded rationality, industrial organization, multi-dimensional pricing, law of small numbers, market exploitation, obfuscation. (shrink)

ABSTRACT A key discourse underpinning US antitrust law is that it protects competition, not competitors. However, what this means in practice both has changed over time and betrays the politics underlying antitrust enforcement. This article interrogates this discourse and its contradictions in the context of the AT&T-Time Warner merger lawsuit through a critical discourse analysis of legal documents related to the case. The case represents a conflict over incentivizing competition in digital advertising markets at the expense of (...) class='Hi'>competition, particularly smaller competitors, in video markets. The analysis reveals how the discourse obscures the strategic choices made by courts to protect incumbent companies: by approving the merger, the court circumscribed the video programming and distribution market for consolidation to strengthen the competitive position of the merging parties in the digital advertising market dominated by Facebook and Google. Thus, this discourse masks not just the deference to dominant merging companies, but also the role of courts in shaping market competition at their behest. (shrink)

Competition is the most basic force traditionally regarded by Western economists as governing both society's resources allocation and income distribution. No wonder, then, that many legal systems have been concerned with various aspects of competitive activity, and formulated laws and rulings to keep market behavior within limits of ethical conduct. Jewish law has not been an exception. The focus of this paper is on competition in consumption. Its underlying assumption is that lawmakers' decisions approximate optimality in resource (...) allocation. The validity of the ‘optimality’ assumption is assessed in light of the special moral features unique to Jewish law. (shrink)

Feminist literature sometimes posits that competition and cooperation are opposites. This dichotomy is important in that it is often invoked in order to explain why mainstream economics has focused on market activity to the exclusion of non-market activity, and why this fascination or focus is sexist. The purpose of this paper is to demonstrate that the competition/cooperation dichotomy is false. Once the dichotomy is dissolved, those activities which are seen as competitive (masculine) and those which are (...) seen as cooperative (feminine) are no longer mutually exclusive but are, in fact, dependent upon one another. It is shown that the outcome of competition (more and better knowledge) enhances, and in some cases makes possible, cooperation. The function of battle is destruction; of competition, construction. Ludwig von Mises. (shrink)

We attempt to identify and evaluate the association between key characteristics of not-for-profit hospitals and market concentration, as measured by the Herfindahl–Hirschman Index, using data available from the American Hospital Association, the Centers for Medicare and Medicaid Services, and the Internal Revenue Service Form 990. Our goal is to provide decision support to policy makers on factors that contribute to market competitiveness, which has been linked to improvements in efficiency, costs, and access to health care. We find that (...) contributions are positively associated with market concentration. This could indicate that well-run NP hospitals are rewarded both financially as well as with increased market share. We also find that a higher percentage of Medicare patients is positively correlated with market concentration. This could be explained by the fact that Medicare reimbursement rates are generally lower than those paid by private insurers ; thus, hospitals might not necessarily choose to operate in areas with high Medicare populations. Further, median income is negatively associated with market concentration. One explanation for this effect could be the fact that a population with a higher median income is in a better position to pay for services, making them attractive to hospitals as a potential market. Finally, we find that the presence of managers with voting rights on the boards of directors has no significant impact. (shrink)