Reflection of the Oligopolistic Market Structure in the Construction of a Financial Model
DOI:
https://doi.org/10.37075/RP.2023.5.07Keywords:
Oligopolistic market structure, Market share, Market concentration ratio (cr), Herfindahl-hirschman index (hhi), Weight of financial indicatorsAbstract
The specific methodology for determining indicator weights is one of the key components in the construction of any financial model. Given the specificities of the oligopolistic market structure, it is necessary to reflect its existence in the construction of financial models that have the task of establishing the financial performance of oligopolistic companies. It is possible to take into account the presence of the oligopolistic market structure by the choice a methodology for determining the weights of indicators in a specific financial model. In this research paper, a specific mathematical model that takes into account the presence of the oligopolistic market structure is presented.References
Akomea, S. Y. & Adusei, M. (2013). Bank Recapitalization and Market Concentration in Ghana's Banking Industry: A Herfindahl-Hirschman Index Analysis. Global Journal of Business Research, 7(3), 31-45.
Beattie, Vivien, Goodacre, Alan, & Fearnley, Stella (2003). And then there were four: A study of UK audit market concentration ‐ causes, consequences and the scope for market adjustment. Journal of Financial Regulation and Compliance, 11(3), 250-265. DOI: https://doi.org/10.1108/13581980310810561
Beck, Jason, Scott, Frank, & Yelowitz, Aaron (2012). Concentration and Market Structure in Local Real Estate Markets. Real Estate Economics, 40, 422-460. DOI: https://doi.org/10.1111/j.1540-6229.2011.00322.x
Bertrand, J. (1883). Review of Théorie Mathématique de la Richesse Sociale and Recherches sur les Principles Mathématique de la Théorie des Richesses. Journal des Savants, 68, 499-508. DOI: https://doi.org/10.1017/CBO9780511528231.006
Bulgurcu, Berna (Kiran) (2012). Application of TOPSIS Technique for Financial Performance Evaluation of Technology Firms in Istanbul Stock Exchange Market. Procedia - Social and Behavioral Sciences, 62, 1033-1040. DOI: https://doi.org/10.1016/j.sbspro.2012.09.176
Collard-Wexler, Allan, Gowrisankaran, Gautam, & Lee, Robin S. (2018). “Nash-in-Nash” Bargaining: A Microfoundation for Applied Work. Journal of Political Economy, 127(1), 163-195. DOI: https://doi.org/10.1086/700729
Cournot, A. (1838). Recherches sur les Principles Mathématique de la Théorie des Richesses. Paris: L. Hachette.
Heidary Dahooie, Jalil, Zavadskas, Edmundas Kazimieras, Vanaki, Amir Salar, Firoozfar, Hamid Reza, Lari, Mahnaz, & Turskis, Zenonas (2019). A new evaluation model for corporate financial performance using integrated CCSD and FCM-ARAS approach. Economic Research-Ekonomska Istraživanja, 32(1), 1088-1113. DOI: https://doi.org/10.1080/1331677X.2019.1613250
Deng, Hepu, Yeh, Chung-Hsing, & Willis, Robert J. (2000). Inter-company comparison using modified TOPSIS with objective weights. Computers & Operations Research, 27(10), 963-973. DOI: https://doi.org/10.1016/S0305-0548(99)00069-6
Diakoulaki, D., Mavrotas, G., & Papayannakis, L. (1995). Determining objective weights in multiple criteria problems: The critic method. Computers & Operations Research, 22(7), 763-770. DOI: https://doi.org/10.1016/0305-0548(94)00059-H
Coggeshall, F. (1886). The Arithmetic, Geometric, and Harmonic Means. The Quarterly Journal of Economics, 1(1), 83-86. DOI: https://doi.org/10.2307/1883111
Handelsreport Lebensmittel. Fakten zum Lebensmitteleinzelhandel. (2018). Handelsverband Deutschland.
Krivka, Algirdas (2016). On the concept of market concentration, the minimum Herfindahl‒Hirschman index, and its practical application. Panoeconomicus, 63(5), 525-540. DOI: https://doi.org/10.2298/PAN140407025K
Martyniuk, Volodymyr, Wolowiec, Tomasz, & Mieszajkina, Elena (2021). Planning and Forecasting Customs Revenues to the State Budget: A Case Study of Ukraine. EUROPEAN RESEARCH STUDIES JOURNAL, XXIV(2), 648-665. DOI: https://doi.org/10.35808/ersj/2301
Moretti, Luigi (2012). Bank Concentration, Private Credit, and Firm Turnover. Evidence from the Enlarged European Union. Aisberg (University of Bergamo), 50(5), 5-22. DOI: https://doi.org/10.2753/EEE0012-8775500501
Ghadikolaei, Abdolhamid Safaei, Esbouei, Saber Khalili, & Antucheviciene, Jurgita (2014). APPLYING FUZZY MCDM FOR FINANCIAL PERFORMANCE EVALUATION OF IRANIAN COMPANIES. Technological and Economic Development of Economy, 20(2), 274-291. DOI: https://doi.org/10.3846/20294913.2014.913274
Wang, Yu-Jie & Lee, Hsuan-Shih (2009). Evaluating financial performance of Taiwan container shipping companies by strength and weakness indices. International Journal of Computer Mathematics, 87(1), 38-52. DOI: https://doi.org/10.1080/00405000701489412
Wu, Zhibin & Chen, Yihua (2007). The maximizing deviation method for group multiple attribute decision making under linguistic environment. Fuzzy Sets and Systems, 158(14), 1608-1617. DOI: https://doi.org/10.1016/j.fss.2007.01.013
Downloads
Published
Issue
Section
License
Copyright (c) 2023 Bozhidar Radkov (Author)

This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright to their works.
All publications are distributed under the terms of the Creative Commons Attribution 4.0 International (CC BY 4.0) license.