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3.4 Análisis del proceso realizado por Aldesa Puesto de Bolsa S.A para la gestión del

3.4.3 Análisis de Emisores

3.4.3.1 Análisis de emisores del sector financiero

Large-scale product market entry refers to a situation in which

the existence of scale economies necessitates entry at a scale such

that the entrant must take account of the fact that its output would,

other things being equal, depress market price. Recent work has shown

that under such conditions there may be an advantage to being first in

the market. This result is of fundamental importance since, as we shall

see, it means that the initial conditions matter in the determination

of organisational form.

The advantage to first-movers is that they may be able to make

commitments such that potential entrants perceive that they cannot do

as well in the post-entry equilibrium as the incumbent achieves pre­

entry. The earliest and most well-known of this class of models assumes

that the potential entrant expects the incumbent's output to remain

fixed (and that the incumbent knows this to be the case). This

particular assumption, the "Sylos Postulate", turns out to be generally

unsatisfactory but given its familiarity it is useful to illustrate

the essence of the argument. Dixit (1979) considers the optimal strategy

of an incumbent CF faced with an equally efficient CF potential

entrant. He demonstrates that in certain curcumstances the incumbent

would choose to accommodate the entrant into the market, but in others

it is optimal to set an output level which deters entry. In the latter

case, which is of particular interest to us, the incumbent continues

to earn positive profits pre-entry even although the entrant perceives

zero post-entry profits. Furthermore, such entry deterrence may

of the model a firm has an advantage simply by virtue of being first.

If the other firm had been first the equilibrium would be different.

Thus, as Dixit points out: "This suggests that we should pay more

attention to historical or even purely accidental factors when economies

of scale are important, since they can effect industrial structure in

a significant way" (1979, p.23). The same holds true if the potential

entrant is a LMF rather than a CF because, as shown by Miyamoto (1980),

the same output which deters a CF would deter a LMF of equal efficiency.

Given that the wage rate is assumed fixed, the organisational input is

ignored for both firms, and there are no differences in job satisfaction

in his model, this is easily seen since combining tt = R - wN - F and

R - F > > (7)

v = --- reveals that n = 0 as y = w. The problem N

with the Sylos postulate is that if entry were to occur the established

firm would find it best to reduce output. Knowing this, the potential

entrant would not regard the threat to maintain the pre-entry level

as credible. However, a number of models have been proposed in which

the incumbent makes a commitment which is binding. The commitment

may take a number of forms, including brand selection, capacity,

innovation and advertising. They operate in the same way as would

a commitment, if it was possible, to a given level of output. Thus

the major implication, as Salop (1979) points out in his short review,

is that an incumbent may be able to deter an entrant which is of equal (8)

or even superior efficiency. Although the models always examine

We have therefore the important possibility that CFs may be able to

deter entry by LMFs even if the latter are more efficient.

This analysis relates to entry into the product market. In the

case of labour-market monopsony power we suggested in Chapter 3 that

LMFs might be less easily deterred by an incumbent CF than would

If workers wish to buy an existing CF the purchase price must

take account of any future stream of profits that the capitalist is

giving up. Conversions will not therefore occur if labour-management

is less efficient than capitalist production; but if it is more efficient

there would appear to be the possibility of a mutually advantageous

trade. However, it is well known in general that, under certain

conditions, potentially advantageous exchanges may not take place

(Gravelle & Rees 1980, pp. 504-7). Two such conditions are pertinent

to our analysis: imperfect information concerning the good to be

traded, and "small numbers".

Certain kinds of information about the firm may be obtained

relatively costlessly by workers contemplating the establishment of a

LMF. Into this category would fall, for example, the prices and

quantities of existing inputs and outputs and the length of time which

contracts have to run. On the other hand, information such as the

possibility of new competitors on the horizon, forthcoming supply

difficulties and the stock of goodwill enjoyed by the firm is much more

difficult to obtain. The costs of acquiring such information could

exceed the gains from trade. Turning now to the second problem, it

is unlikely that negotiations over the sale of firms would involve

large numbers of identical potential buyers and sellers. This is

because, first of all, for any particular CF the existing workforce

are likely to have superior information regarding the sorts of issues

"small numbers" are therefore not necessarily independent. Secondly,

the existing workforce already have the appropriate production skills.

Thirdly, and perhaps most importantly, an outside group of workers

would be faced with the problem of removing the incumbent workforce.

The situation facing the capitalist seller and LMF buyer is therefore

one where there is a multiplicity of terms which could make one or

both parties better off but, because of "small numbers", there is no

exogenous market price at which they must trade. The result may be

a period of lengthy and costly bargaining and there is the possibility

that they may not be able to agree at all. An important point of note

is that if there is no agreement on the sale it does not mean that the

two parties do not trade at all. They would still be faced with the

employment contract to negotiate and this typically involves bargaining.

Recognition of this may make the capitalist reluctant to provide

information which the workforce requires in order to evaluate the

possibility of purchase because, in the event of a failure to agree

terms, that information would weaken his or her bargaining position

concerning the employment contract. The possibility of a continuing

employment relation will therefore add to the difficulties of negotiating

a sale.

Our examination of large-scale entry and of the sale of firms

suggests that there may be advantages to being first. The first-mover

advantage may be sufficient to outweigh some degree of inefficiency

relative to a potential entrant or prospective purchaser. These types

of advantage are not advantages of one particular organisational form

Thus for example a LMF may be able to deter entry by a more efficient

CF and similarly a relatively inefficient CF will not necessarily be (9)

taken over by more efficient owners. However, our interest is

with an initial situation in which all existing firms are CFs and hence

for us the implication is that capitalist production might not be

replaced by labour—managed production, even if the latter were more

efficient. We now turn to another type of first-mover advantage