H.L. van Kranenburg

Exit and Survival in a Concentrating Industry: The Case of Daily Newspapers in the Netherlands

This paper studies the effects of aggregate, industry-, and firm-specific factors on the exit hazard rates in the market for daily newspapers in the Netherlands from 1950 to 1996. We present a brief overview of the exit literature. On the basis of the existing empirical evidence, we decided to specify and estimate exponential and piecewise constant hazard rate models. We find that exit hazard rates of daily newspapers depend on the circulation size, ownership, and number of incumbents. Moreover, the effects are time-dependent. We do not find any significant effect of macroeconomic factors.

NEW AIRLINE ENTRY RATES IN DEREGULATED AIR TRANSPORT MARKETS

This paper studies the influencing factors on entry (certification) of new airlines into the US airline industry over 21 years (1979-1999). These rates exhibit considerable fluctuations over the observed period. We analyze the US airline industry for a period of 21 years to determine the relationship of the observed fluctuations in the entry rates with political and extraordinary events, economic conditions and several industry specific variables. We present maximum likelihood estimates of an entry model on the negative Binomial distribution. This methodology reflects the discrete nature of the dependent variable. The results support the notions of positive macro-economic and industry specific developments on the entry opportunities of new airline companies.

Economic Effects of Consolidations of Publishers and Newspapers in the Netherlands

The aim of this article is to assess, by way of an empirically based analysis, whether or not the price behavior of newspapers, both on reader and advertising markets, is affected by consolidation. Two questions related to consolidation are investigated. The first relates to the extent to which consolidation between regional newspapers in the same area leads to a change in either the subscription price or in the real advertising costs. The second investigates whether a merger between newspaper publishing companies leads to a change in the subscription price of their newspapers or in the real advertising costs. Newspapers that were directly or indirectly involved in consolidations did not show a more detrimental pricing behavior to consumers than the other dailies.The aim of this article is to assess, by way of an empirically based analysis, whether or not the price behavior of newspapers, both on reader and advertising markets, is affected by consolidation. Two questions related to consolidation are investigated. The first relates to the extent to which consolidation between regional newspapers in the same area leads to a change in either the subscription price or in the real advertising costs. The second investigates whether a merger between newspaper publishing companies leads to a change in the subscription price of their newspapers or in the real advertising costs. Newspapers that were directly or indirectly involved in consolidations did not show a more detrimental pricing behavior to consumers than the other dailies.

The life cycle of daily newspapers in the Netherlands: 1848-1997

In 1848 freedom of the press was written into the Constitution of the Kingdom of The Netherlands. This paper investigates the life cycle characteristics of the market for daily newspapers in The Netherlands since then. Life expectancy depends on the cyclical evolution of the number of daily newspapers through time. The life cycle of the competitive newspaper industry in The Netherlands is characterized by a turning period of turmoil during World War II. Models that aim at estimating the expected lifetime of newspapers should acknowledge the cyclical characteristics of the industry.

GOVERNMENT POLICY AND THE EVOLUTION OF THE MARKET FOR DUTCH DAILY NEWSPAPERS

This paper investigates whether governments can change market structures through interventions. We study the effects of four political events over the life cycle of the market for daily newspapers in the Netherlands. We find that policy measures meant to lower entry barriers in an expanding industry created new entry and increased survival chances for potential entrants and incumbent newspapers. Exit barrier enhancing policies to reduce concentration tendencies have not been successful.

Political Strategies of Foreign Firms in the Dutch Chemical Industry

Purpose – This chapter explores the rationale for foreign companies to have a political strategy and how these companies are politically active in a small, open and regionally integrated economy. The reasons why companies are engaged in corporate political activities are tied to the rationales for corporate political actions but are also interrelated with the question of how effective is the selected corporate political approach in the institutional environment of a host country. The approach of political corporate activities is based on the relational and transactional approaches. Design/methodology/approach – This chapter is largely exploratory and focuses on a non-American political context. The evidence is coming from the foreign firms operating in the chemical sector of a small, open and regionally integrated economy, the Netherlands, which is part of the larger economic entity the European Union (EU). In-depth interviews were conducted with general managers of foreign-owned firms because they could provide most insight into the political strategies of their subsidiary. The data collected through the interviews were analysed using content analysis, by using four entities of analysis: analysis on words, sentences, fragments or themes. Findings – Empirical evidence shows a strong transactional predisposition among the political activities of foreign firms as a result of the red tape bureaucratic Dutch system. On a standalone basis, the small foreign firms did not consider that they have the power to influence political decision making in any way. The majority of firms are member of an industry association. These associations interact with political decision makers in the Netherlands on behalf of these firms. Originality/value of chapter – This chapter takes a foreign firm-specific level of analysis on corporate political strategies approach in a host institutional environment, which is generally more researched at multinational enterprises level. The Netherlands, with a small, open and regionally integrated economy, represents a totally different setting than the pluralist country, in particular the American one, and therefore, the existing American based literature on political strategies will be less representative for this corporatist country. The design choice and the effect of the approach of political strategies implemented by the foreign firms are affected by the specific host institutional environment.