Fragmented Market - Definition
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fragmented market Afragmented marketon the way to harmonisation? EU policy-making on renewable energy promotion, Jansen, J. C., & Uyterlinde, M. A. (2004). Energy for Sustainable Development,8(1), 93-107. This paper is focused on directives from the European Union on the promotion of : (1) production of electricity from renewable energy sources (the RES-E Directive) and; (2) the use of renewable fuels for transportation (the RF directive). This paper first shows an overview of the policy and the political process which lead to this directive. Secondly, these directives are described and assessed for implementation. This leads to the feasibility of executing these directives from the EU. Some near-term priorities for implementation are identified. Union-wide harmonization points to factors of one energy market, improvement of the EU economy in the international market and greatly increasing cost-reduction and innovations in energy renewable-like industries. AfragmentedChina: Measure and determinants of Chinese domesticmarketdisintegration, Poncet, S. (2005).Review of international Economics,13(3), 409-430. This paper investigates inter-provincial trade barriers and its determinants and studies the level of Chinas local market integration within the rubric endogenous trade policy theory. This model is developed by industry-degree trade flows extracted from provincial input-output tables. This is then used to analyze the degree and evolution of the engagement of Chinese provinces in domestic trade. All-inclusive computing indicators of trade barriers do this. The province level and industry level barrier investigation ascertains the importance of applying the endogenous protection framework. This then explains the degree between Chineses impediments to trade. Role hazard between supply chain partners in an institutionallyfragmented market, Dong, M. C., Ju, M., & Fang, Y. (2016). Journal of Operations Management,46, 5-18. The supply chain has a major challenge in emerging markets of the relational coordination problem. This problem is from sub-national institutions that situate partners. This study seeks to research role hazard although critical, yet under-researched problem. By using institutional theories and drawing from the role, role ambiguity and role conflicts are examined. These two, role ambiguity and role conflicts are two facets of role hazards between buyer and supplier, the source of institution, performance outcomes and the alignment of the firms action mechanism as potential remedies. This paper shows how buyers and suppliers can aid their relational coordination in emerging markets. This can be done by a reduction in role hazard that results from a sub-national institutional distance. Optimal order routing in afragmented market, Maglaras, C., Moallemi, C. C., & Zheng, H. (2012). Preprint. Participants in the modern equity market have choices of exchanges to trade with. This exchange operates as an electronic limit and function under the price-time priority rule. Findings show that the equilibrium of this non-central market, shows a certain state space collapse, taking into consideration, the effect of the order of investors decisions across exchanges. Here: (a) the states at various exchanges are coupled in an intuitive manner; (b) the market behavior is captured by one-dimensional process that can be seen as weighted aggregate depth of the market at both best bid and offer across all exchanges, and (c) various exchange behavior is inferred by a set of simple mappings from that of aggregated market depth process. Price formation and equilibrium liquidity infragmentedand centralized markets, Biais, B. (1993). The Journal of Finance,48(1), 157-185. This article seeks a comparison between centralized and fragmented markets, such as floor and telephone markets. Agents of risk-averse compete for one market order. In the central markets, these agents are either market makers or limit order traders as they observe quotes of competitors. This paper also analyzes differences in strategies to bid reflecting difference in market structures. In both markets, the expected spread is shown to be equal, ceteris paribus. Although in the centralized market, the spread is more volatile than in fragmented markets. Consolidation, fragmentation, andmarketperformance, Mendelson, H. (1987). Journal of Financial and Quantitative Analysis,22(2), 189-207. This article researches on the impact of market consolidation or fragmentation on its performance. Four alternatives models of exchange are examined: a consolidated clearing house, a monopoly dealer market, fragmented clearing house, and an interdealer dealer market. Further studies include the quality of market price signals, exchange implementation cost, the effect of the market mechanism on the needed quantity, the expected gains from trade and the price variance faced by individual traders. Ismarket fragmentationharmingmarketquality?, O'Hara, M., & Ye, M. (2011). Journal of Financial Economics,100(3), 459-474. This paper examines how to market quality in the US equity market is affected by fragmentation. Newly available trade reporting facilities are used (TRFs). It is used for the measurement of fragmentation, and the variety of empirical approaches to compare execution quality and efficiency of stocks with some fragmented trading. It is discovered that fragmentation affects all stocks; as stocks with more fragments have lower transaction cost with the faster speed of execution; and fragmentation is associated with higher short term volatility but greater market efficiency, in that prices are closer to be a random walk. A framework forfragmentation, Jones, R. W. (2000).A framework for fragmentation(No. 00-056/2). Tinbergen Institute Discussion Paper. Fragmentation is a splitting up of a production process that is vertically integrated. It is in a way that the separate fragments can be traded on markets. This paper also covers international fragmentation and allows gains from the division of labor which is based on comparative advantage in separate fragments. This paper also shows wage may rise when a country loses a labor-intensive fragment of a process to foreign competition following a reduction in the cost of service links. Marketstructure,fragmentation, andmarketquality, Bennett, P., & Wei, L. (2006). Journal of Financial Markets,9(1), 49-78. The flow of fragmentation on market quality is studied by this paper. Order flow becomes more consolidated due to differences in market structure. This occurs when a stock switch is listing from the market for dealers (NASDAQ) to an exchange (NYSE). It is discovered that theres a relationship between the post-switch improvements of market quality and the level of order flow fragmentation on (NASDAQ) and also the fragmentation change after trading on NYSE. It was further discovered that after the control and correction for potential selection bias arising, order flow fragmentation affects the quality of the market as predicted by finance theories. Non-Europe: the magnitude and causes ofmarket fragmentationin the EU, Head, K., & Mayer, T. (2000). Review of World Economics,136(2), 284-314. Non-Europe: The causes and degree of market fragmentation in the EU. The EU diagnosed member state in 1985 as been affected by excessive market fragmentation. This state was later referred to as Non-Europe. A trading model was used by the authors as the basis for examining the diagnosis. The trade model was derived from monopolistic competition. The links between initial size and the subsequent competition were investigated. This link involves the border effect within the EU. The research shows that consumers in the EU act as if imports members were dependent on high non-tariff barriers. Internationalfragmentationand the new economic geography, Jones, R. W., & Kierzkowski, H. (2005). The North American Journal of Economics and Finance,16(1), 1-10. Fragmentation of vertically integrated production process implies that segments are situated in various geo-areas. This could be in different countries and could be undertaken by different organizations. To coordinate such fragmentation, service links are required. These links comprise of significant economic scales. But this leads to dis-agglomeration of economic activity, most especially at higher levels. Although, this assertion, is contrary to that suggested in the new economic geography literature. This paper researches the effects of increasing returns in service links for fragmentation and the distribution of production. Trading rules,competitionfor order flow andmarket fragmentation, Kwan, A., Masulis, R., & McInish, T. H. (2015). Journal of Financial Economics,115(2), 330-348. This paper researches the investigation between traditional stock exchanges and new dark trading venues. An important difference in regulatory treatment is used. Minimum pricing increments are required by Securities and Exchange Commission. The pricing constraints some stock spreads which results in limit order queues. Traders bypass existing limit order queues with minimal price improvement by using dark tools. It was discovered by using a regression discontinuity design that spread constraints greatly weakens exchanges competitiveness. The probability of subsequent execution increases as more orders migrate to dark tools, and this raises liquidity General technological capabilities, productmarket fragmentation, and markets for technology, Gambardella, A., & Giarratana, M. S. (2013). Research Policy,42(2), 315-325. Licencing in the industry can be encouraged by the combination of firm capability, i.e., the ability to create technologies that are general purpose and a market structure condition, I.e., the fragmentation of downstream submarkets. This also means when products market is fragmented, the probability of licensing should increase. The proof from these assertions is from a 1993 to 2001 panel of 87 organizations which owned at least a U.S. software security patent between the years of 1976 and 2001. The analysis shows some basic characteristic of how external knowledge exploitation functions. Particularly, technology markets succeed when product markets are fragment and companies can manufacture global technologies.