...industry and explain the general pattern of change of the particular market model Health insurance in the United States providers represent competitive market because they are numerous, variety of choices, and no single entity has much power over prices. The health insurance can be considered as rapid growth industry. Recently, this industry is transforming in a rapid way and evolving into an oligopoly. Insurance markets in many states are eventually controlled and dominated by a few large firms. There were more than five hundred health insurers involved mergers between 1998 and 2008 (Bakhtiari, 2010). Although there are hundreds of small insurance companies operating in the market, the industry Led by WellPoint, 12 health plans cover two-thirds of the enrollment in the U.S. commercial-insurance market (Bloomberg News, 2010). An analyst's report cited in the article predicts there will be 100 insurers with around 200,000 members could be forced out of business. Smaller insurers are increasingly unable to invest in the infrastructure and technology to effectively manage care (Bakhtiari, 2010). However, mergers have been the main power rather than small insurers going out of business. 2. Hypothesize the basic short-run and long-run behaviors of the model in the industry you have chosen in a “market economy” This paper uses Kinked-Demand theory of oligopoly; there is no single theory that explains oligopoly behavior. The kinked demand model assumes that if one firm raises the...
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...Market Model Pattern of Change: Automobile Industry Presented By Name Institution Instructor Course Title Date of Submission Abstract Automobile industry is one of the oligopolistic industries that have experienced a change in its oligopoly market model. The pattern of change is evidently shown in its production, supply chain, pricing, and international trade changes. The paper examines this industry and explains the pattern of change and other aspects within the industry. Industry description Automobile industry is one of the most global oligopolistic industries. Products in this industry have spread throughout the globe, and a few numbers of companies with worldwide recognition have dominated it. However, the industry is facing historical changes that are resulting from changing customer needs in the triad and emerging markets, technological advances, entrance of new competitors, and the ever-tightening emission standards. These changes have affected the demand, margin structures as well as value chains in this industry. As a result, the market is changing to a mobility market, which is more competitive, and the industry structure is changing and more importantly, the market model. This is forcing market players and new entrants to change market framework in order to achieve sustainable success. General pattern of change of the oligopoly market model of automotive industry The current global automobile industry is full of risks and opportunities...
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...Running Head: MARKET MODEL PATTERNS OF CHANGE Market Model Patterns of Change Student Strayer University ECO 550: Managerial Economics and Globalization Dr. Professor June 2, 2013 Market Model Patterns of Change Comcast Corporation is one of the world’s leading media, entertainment, and communications companies. It is principally involved in operating cable systems through Comcast Cable and is the nation’s largest pay-tv provider to residential and business customers with more than 22 million subscribers. Comcast Corporation is the majority owner and manager of NBC Universal, which owns and operates entertainment and news cable networks, the NBC and Telemundo broadcast networks, local television station groups, television production operations, a major motion picture company and theme parks. Though they now work collaboratively with other industries to provide their products and services, this was not always the case. In the past, they were able to enjoy a monopolistic business model in the areas they served because they were the only game in town. . Characteristics of monopoly structure are: profit maximization since there is only one firm that determines the price in the market; only a single seller exists which implies that the market is controlled by one firm; and the firm is the same as the industry. Cable television was not so well received when it was offered to the public for the first time in 1948. Initially it was called Community Antenna TV or CATV and...
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...industry and explain the general pattern of change of the particular market model Health insurance in the United States providers represent competitive market because they are numerous, variety of choices, and no single entity has much power over prices. The health insurance can be considered as rapid growth industry. Recently, this industry is transforming in a rapid way and evolving into an oligopoly. Insurance markets in many states are eventually controlled and dominated by a few large firms. There were more than five hundred health insurers involved mergers between 1998 and 2008 (Bakhtiari, 2010). Although there are hundreds of small insurance companies operating in the market, the industry Led by WellPoint, 12 health plans cover two-thirds of the enrollment in the U.S. commercial-insurance market (Bloomberg News, 2010). An analyst's report cited in the article predicts there will be 100 insurers with around 200,000 members could be forced out of business. Smaller insurers are increasingly unable to invest in the infrastructure and technology to effectively manage care (Bakhtiari, 2010). However, mergers have been the main power rather than small insurers going out of business. 2. Hypothesize the basic short-run and long-run behaviors of the model in the industry you have chosen in a “market economy” This paper uses Kinked-Demand theory of oligopoly; there is no single theory that explains oligopoly behavior. The kinked demand model assumes that if one firm raises the...
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...Tornado Tips and Safety Tornadoes cause major destruction across the nation. Some areas may seem to attract tornadoes more so than others but it doesn’t mean a tornado can’t strike an area just because of the geographical location. There is not a typical or specified season for Tornadoes to occur; however, if weather conditions are conducive, a tornado can possibly form. Tornadoes extend from severe thunderstorms and usually develop from the trailing end of a storm. It is possible and not uncommon for the sun to be visible or skies to be partially clear during a tornado. Some tornadoes are easily seen and detected, while others strike quickly with little or no warning. This is why it is so important to know what to do in case of a tornado occurs in your area. Tornados destruction depends on what categories they may fall into. The categories for tornados fall in categories between F0- F5. F0 means Gale Tornado Category between 40 - 72 mph--Light damage which could cause some damage to chimneys, breaks branches off trees, pushes over shallow-rooted trees, and damages sign boards. Or a tornado can be classified all the way to an F5 which means Incredible Tornado Category between 261 - 318 mph-Incredible damage which could cause strong frame houses lifted off foundations and carried a considerable distance and disintegrated, automobile sized missiles fly through the air in excess of 100 meters, and trees debarked. If strong winds and hail and debris start moving it may be...
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...Corporate fraud can be very difficult to prevent and to catch. Corporate fraud schemes go beyond the scope of an employee’s stated position, and are marked by their complexity and economic impact on other employees and outside parties. By creating a system of checks and balances and physical security, a company may limit the amount of fraud that may be able to take place. This type of crime is considered a white collar crime. Three new ways that I believe will get rid of corporate fraud are: a. Evaluate programs and control When the auditor identifies risks of material misstatements due to fraud, the auditor must consider management’s programs and controls to address those risks. Auditors may want to include broader programs or certain controls designed to prevent, or detect fraud. The auditor would estimate whether these programs have been designed and placed in operation. b. Auditor’s response The auditors can develop a suitable response for every fraud risk recognized and includes more extensive guidance on how to do so. The auditors responses are usually influenced by the nature of the risks recognized, may have an overall effect on how the audit is conducted or might involve changing the nature. The response will usually involve performing certain procedures to address the risk of management override of controls. c. Expanded scope for assessing fraud risks The auditors should obtain a broader range of information to act as the foundation for an assessment that...
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...and national development strategy in a way that brings lasting value to the Mongolian economy, sustainable development of Mongolia in particular. Bringing M•CAM’s innovative suite of financial solutions, including new strategies using trade credit offsets, to the Mongolian market has the potential to accelerate the market engagement strategies of this culturally rich, resource endowed Mongolia. The M-ICP (www.m-icp.com) is a newly established company in Mongolia which provides ethical, innovative business, finance, and policy advisory services to businesses, communities, government and other development stakeholders. A core mission of M-ICP is the promotion and support of global innovation and technologies, innovative financing, global innovation commons and heritable innovation knowledge in a breakthrough ways. The M-ICP founded by four Mongolian professionals and Ms. Nergui Dorj is a Founding Chief Executive Director. She is an economist, banking and finance specialist and development practitioner - graduate of Moscow Financial Academy, Australian National University and University of Wollongong, Australia. Ms. Nergui Dorj had been an active player in Mongolia’s transition from centrally planned to a market oriented economy and worked in senior positions of the Bank of Mongolia, the central bank, Institute of Finance and Economy, Economic Policy Support Project, DAI/USAID, Prime Minister’s Office of Mongolia, UNDP Mongolia and UNDP Samoa. She also...
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...rate to cover the depreciation expense of the equipment. But I don’t want to overcharge either since regulators usually involve if monopoly price out of track. Select a non-monopolized product or service with which you are familiar and determine how the consumption of that product or service would differ if it were controlled by a monopoly. The imagined example of non-monopolized product or service would be car. We have many car makers such as big three, Toyota, Honda, Nissan, Hyundai and Benz etc. Not mention we have thousands of car dealers across the nation, needless to say, car and its service are non-monopolized. These car makers and dealers compete with each other by lowering the price and cost or exhibiting the new model to lure customers. If there is only one car maker, then it become the monopoly. So the only car maker is very likely to hike the price since buyers are the price taker and you don’t have any choice anyway. Be prepare to pay more to get a new car in that case, and you don’t even need to shop around since car becomes the monopoly product....
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...1. Describe the business and explain the general pattern of change of the particular market model indicating how this change is likely to impact business operations. I chose to talk about the music recording industry. The music industry is a complicated system of several different companies and firms that have gone through and adapted to many changes as time went on. The music industry is concerned with the profits gained from the actions of companies that tackle production, distribution, and publication of music worldwide (MarketResearch.com, 2012). In the recording industry, music is made of up of several different genres, styles and or techniques. Recently the industry has experience a wave of new technology with music downloads. Consumers can download songs view the internet using iTunes or an iPod. It benefits everyone involved because you are still purchasing the music in another form. The industry has suffered since napster entered the market with free music sharing amongst users. Lawsuits, piracy protection, and finger pointing have gotten the music industry nowhere as sales has continue to drop drastically. Consumers blame the industry for not developing talent that is in anyway interesting. They are producing music that is manufactured at the least bit interesting at times. 2. Hypothesize the basic short-run and long-run behaviors of the model in the business you have chosen in a “market economy.” Provide support for your assumptions and conclusions. The basic short...
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...Assignment 3 Market Model Patterns of Change Professor Koros Strayer University The Industry and General Pattern of Change Of Market Model The fast paced industry surrounding health insurance in the United States has experienced rapid growth. There are numerous providers representing a competitive marketplace where no single entity rules over prices. However, the industry is undergoing massive transformation processes and slowly evolving into an oligopoly, where only a few large firms will eventually control market dynamics. Throughout the years there has been more than 500 mergers involving health insurers (Bakhtiari, 2010). Although many small insurance companies operate in the market, the industry Led by WellPoint, 12 health plans cover two-thirds of the enrolment in the U.S. commercial-insurance market (Bloomberg News, 2010) . There are reports that predict over 100 insurers with 200,000 members or less could be pushed out of business, because smaller insurers are unable to invest in the infrastructure and technology to effectively manage care (Bakhtiari, 2010). The good news is that small companies are being merged with larger companies rather than going out of business. The Long and Short Run Behaviors in a “Market Economy” We understand there is no single theory to explain oligopoly behavior, however for this comparison; we will use the Kinked-Demand theory of Oligopoly. The kinked demand model assumes that other firms will ignore the increase, if one firm...
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...lead. The internet would promote competition due to a range of alternatives available to prospective clients from all over the world in reasonable time and less cost of reach. 3b. An example is on arbitrage which is the buying and selling of stocks and shares, currency, bills of exchange where different factors from all over the world determine the changes on the price of the above. Another example is that of oil products i.e. the political crises which occurred in Libya affected the output of oil resources to the world which later affected prices around the world. Another is collusion which area of 2 types “Explicit and implicit collusion” A secret agreement among 2 or more competition forms in an industry to dominate the market, control price through informal, independent, actions. 3c) to me, there is little or no way we can eliminate those problems because i. It usually based on no...
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...Forecasting Methods Assignment University of Phoenix MGT 554: Operations Management Steven Williams August 28, 2006 Introduction Forecasting can be defined as Estimating or predicting future events or conditions. Forecasts may be long-term or short-term. The techniques used may be quantitative (often making sue of computers) or qualitative. Quantitative forecasting models may be classified into (a) causal models in which independent variables are used to forecast dependent variables, and (b) time series models, which produce forecasts by extrapolating the historical values of the variables of interest by, e.g., moving averages. Seasonal Model Seasonality is a pattern that repeats for each period. For example annual seasonal pattern has a cycle that is 12 periods long, if the periods are months, or 4 periods long if the periods are quarters. The seasonal index is required to be found for each month, or other periods, such as quarter, week depending on the data availability (Hossein, 1994-2006). Seasonal Index: Seasonal index represents the extent of seasonal influence for a particular segment of the year. The calculation involves a comparison of the expected values of that period to the grand mean. A seasonal index is how much the average for that particular period tends to be above (or below) the grand average. Therefore, to get an accurate estimate for the seasonal index, compute the average of the first period of the cycle, and the second period...
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...with discovery of recurring patterns in financial market time series for the purpose of predicting and profiting from trends and trend reversals the prices of freely traded assets such as stocks, market indexes, exchange traded funds (ETF), commodities, currencies and financial futures and options . Objective TA is restricted to patterns that can be represented numerically and trading systems that produce clear cut buy and sell signals that can be evaluated on historical data. Thus objective TA is concerned with the development of trading systems. Other forms of technical analysis rely upon the visual inspection and subjective interpretation of graphs to detect patterns and predict trends. Objective TA employs indicators, which are new time series derived by applying one or more mathematical transformations to raw market data such as price, volume, open-interest and other data series produced by trading activity. For example, technical analysts apply moving averages to identify price trends. Data mining (DM) is also concerned with patterns and prediction and thus the natural fit between DM and objective TA. Data miners use specialized algorithms to analyze large data multivariate data bases containing thousands or even million of cases with the intent of discovering unobvious patterns that can be used to predict various kinds of outcomes. The end product of a DM effort is a predictive model based the discovered patterns. Ultimately the model is used to make predictions...
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...Relation To Resource Use Planning Definition and Origin of Von Thunen theory The Von Thunen theory use was created by farmer and amateur economist J.H. Von Thunen (1783-1850) in 1826 (but it wasn't translated into English until 1966). Von Thunen's model was created before industrialization and is based on the following limiting assumptions: * The city is located centrally within an "Isolated State" which is self-sufficient and has no external influences. * The Isolated State is surrounded by an unoccupied wilderness. * The land of the State is completely flat and has no rivers or mountains to interrupt the terrain. * The soil quality and climate are consistent throughout the State. * Farmers in the Isolated State transport their own goods to market via oxcart, across land, directly to the central city. Therefore, there are no roads. * Farmers act to maximize profits. In an Isolated State with the foregoing statements being true, Von Thunen hypothesized that a pattern of rings around the city would develop. There are four rings of agricultural activity surrounding the city. Dairying and intensive farming occur in the ring closest to the city. Since vegetables, fruit, milk and other dairy products must get to market quickly, they would be produced close to the city (remember, we didn't have refrigerated oxcarts!). Timber and firewood would be produced for fuel and building materials in the second zone. Before industrialization (and coal power), wood was a...
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...Using Neural Networks to Forecast Stock Market Prices Abstract This paper is a survey on the application of neural networks in forecasting stock market prices. With their ability to discover patterns in nonlinear and chaotic systems, neural networks offer the ability to predict market directions more accurately than current techniques. Common market analysis techniques such as technical analysis, fundamental analysis, and regression are discussed and compared with neural network performance. Also, the Efficient Market Hypothesis (EMH) is presented and contrasted with chaos theory and neural networks. This paper refutes the EMH based on previous neural network work. Finally, future directions for applying neural networks to the financial markets are discussed. 1 Introduction From the beginning of time it has been man’s common goal to make his life easier. The prevailing notion in society is that wealth brings comfort and luxury, so it is not surprising that there has been so much work done on ways to predict the markets. Various technical, fundamental, and statistical indicators have been proposed and used with varying results. However, no one technique or combination of techniques has been successful enough to consistently "beat the market". With the development of neural networks, researchers and investors are hoping that the market mysteries can be unraveled. This paper is a survey of current market forecasting techniques with an emphasis on why they are insufficient...
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