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626 Wschodnioeuropejskie Czasopismo Naukowe (East European Scientific JournaI)#4(32), 2018 as;™!
Also we concluded that following are the challenges or problems facing current insurance market.
- Low insurance protection gap
- Reinsurance retention ratio is low
- Incomplete use of underwriting skills
- Slight differentiation between insurance contracts
- High expense ratio in insurers
Here are the some ways to recommend for the regulator and other stakeholders to solve the problems and to expand the market in the med-term.
- To support the development of life insurance
- To increase the number of mandatory insurance products
- To increase the minimum paid up capital of the insurers or to force for M&A
- To create the unified insurance information database for fraud management
- To legislate coinsurance arrangement in related acts and regulations for reducing the reinsurance retention ratio
- To enhance the public insurance awareness
References:
1. Mark S.Dorfman, 2010, "Introductiun to risk management and insurance", Prentice
Hall of India, New Delhi
2. Michael Koller,2010, "Life Insurance Risk ManagamentEssentials",EAA series-Textbook
3. Global Insurance Markets, 2015, "Economic research & Corporate Development", Munich
4. www.Insurace Information Institute,2015,In-ternational_insurancefactbook
5. www. World Insurance,2015, World_Insur-ance_Report
6. www. Europeinsurance,2015, Euro_Insurance_Report
7. www. Frc.mn, frc_imd_15 introduction04
8. www. nso.1212.mn
Inna Honcharuk
Graduate student of Department of Economic Theory of the Faculty of Economics at Taras Shevchenko National University of Kyiv, Ukraine
THE EVOLUTION OF THEORETICAL AND METHODOLOGICAL APPROACHES TO STUDY OF
MULTI-SIDED MARKETS
Abstract. The article highlights the main stages in the evolution research of multi-sided markets; analyzes the impact of the basic economic theories on the formation of the theory of two-and multi-sided markets; examines the latest trends of the research of multi-sided markets in a globalized world; analyzes the contribution of representatives of the industrial organization theory in the study of competition in the two-and multi-sided markets.
Key words: two-sided market, evolution, approaches, theory, multi-sided market.
Staging problems. Innovative achievements in the field of high technologies and digitalation of socioeconomic relations, promote the evolutionary development of market infrastructure, in particular, the formation of a new type of marketplace - a multi-sided market.
Due to the rapid development of multi-sided markets, an urgent task of economic science becomes the disclosure of their entity, features and characteristics. This foresees the research of the evolution of theoretical and methodological approaches to study of multi-sided markets with the aim of forming ideas about the effective functioning of the firms in the market, new ways of meeting needs of end-users, necessity and mechanism of their regulation by the State, the development of measures to prevent unfair competition, etc.
Analysis of recent studies and publications. Subject matter of two- and multi-sided markets is widely covered in foreign scientific literature, a significant amount of scientific publications is devoted to it. General analysis of properties and features of two-sided markets is presented in publications by M. Armstrong, J. Tirol, J. Rochet, D. Evans, etc. Study of competition in two- and multi-sided markets is considered in scientific papers of L. Jeppesen, S. Ansari, K. Boudreau, O. Kovalenko and others. The impact of innovation on the
development of multi-sided markets is explored in the works of N. Rozanova, A. Ignatyuk, A. Gryshchenko, N. Rumyantseva, S. Leibovitz, J. Farrell, C. Snow, A. Smedlund, M. Steves, D. Roberts and others.
The purpose of the research is to identify the main stages in the research evolution of multi-sided markets and the impact of the basic economic theories on the formation of the theory of two-and multi-sided markets; explore the newest directions of research of multi-sided markets in a globalized world, as well as to analyze the contribution of representatives of the industrial organization theory in the study of competition in the multi-sided market.
Research results. In the scientific literature, the notion of "multi-sided market" has started to be applied very recently, due to the complication of the infrastructure of the two-sided market and is characterized by an increase in the number of groups of market participants. That is why, to reveal its essence, it is necessary to analyze approaches to the definition of a two-sided market.
The notion of a " "two-sided market" emerged on the basis of two adjacent areas of research: the theory of networks, network connections and the theory of network effects, but was used to analyze various properties of markets.
Wschodnioeuropejskie Czasopismo Naukowe (East European Scientific Journal) #4(32), 2018 27
For the first time, the term "two-sided market" was used by D. Gale and L. Shepley to define specific spheres of relations, in which two completely unconnected groups of entities interact. A key feature of these markets is that the price is either absent or does not play an important role in the exchange and distribution of the positive effect that arises as a result of the interaction of these entities. However, in our opinion, the basis for the emergence of the two-sided markets theory was the study of networks and network communications in various fields of science. Researchers working within each direction used excellent initial theoretical background, empirical data, which allowed to analyze the essence and features of networks and network connections from different scientific positions [11, p.2-8].
The formation of the theory of multi-sided markets can be conventionally divided into 5 main stages: research of networks and network connections in various branches of science, research of network effects, study of the essence of classical two-sided markets, research of two-sided markets with participation of business platforms, research of multi-sided markets in the conditions of globalization.
Stage 1 - Research of networks and network connections in various fields of science. Representatives: L. Euler, J. Moreno, J. Barnes, S. Milgram, A. Rad-cliffe-Brown, S. Rokkan, M. Granovetter, M. Castells and others. Contribution to the emergence of the multi-sided markets theory: - the emergence of graph theory, which is the basis for research on network connections from the point of view of the natural sciences, - society is defined as a complex network of relations, - network structures are considered as additional channels that combine private and state actors, take into account their interests in the process of making political decisions; -definition of "weak" and "strong" network connections in the social network; - development of protocol of interconnection interaction; - modern society is defined as network (network society) [12].
Stage 2 - Exploring network effects. Representatives: T. Weil, R. Metcalf, M. Kats, K. Shapiro, S. Leibovitz, S. Margolis, A. Ignatyuk, V. Ignatyuk and others. Contribution to the emergence of the multi-sided markets theory: - in the definition of the concept of "network externalities" and its justification on the example of the telephone industry, - R. Metcalf's law, which states that the utility value of a network is half the square of the number of users of this network, - determining the dependence of the importance of expectations consumers on D. Gale, L. Shepley to establish equilibrium in a market where there are network effects, - the effect of external network effects on the change of transaction costs, - the establishment of equilibrium in markets with network effects; - lock-in effects; - formation of a new technology standard and choice in the market with network effects - the overall telephony market trends based on changes in market size over time [13].
Stage 3 - Investigation of the essence of classical two-sided markets. Representatives: D. Gail, L. Shep-ley, E. Roth, M. Sotomayor, H. Sasaki, M. Toda, E. Peranson and others. Contribution to the emergence of the multi-sided markets theory: - definition of the two-
sided market as a specific market type; - Gail-Sheply's algorithm; - theory of generalized combinations; - peculiarities of pricing in two-sided markets; - An analysis of the two-sided nature of the exchange (as a result of interaction, both parties gain some benefit) - the existence of a stable placement of agents in the market [2,11].
Stage 4 - Research of bilateral markets with the participation of business platforms. Representatives: J. Tyrol, J. Rochet, D. Evans, M. Armstrong J. Wright, H. Halaburda, B. Julien, J. Egezkel, A. Heghue, H. Hala-burda, J. Egezkel, J. Parker, A. Shastiko, E. Parshina, O. Kovalenko, A. Ihnatyuk and others. Contribution to the emergence of the multi-sided markets theory: - The role of business platforms in two-sided markets - Analysis of approaches to platform definition - Types of business platforms; - agreement between platforms on two-sided markets - competitive bottlenecks and exclusive contracts in two-sided markets - equilibrium price in the market - profit payed by platforms from multi-platform associations - comparisons of the concept of two-sided markets with the theory of external effects and price discrimination of third degree [4,5,6].
Stage 5 - The study of multi-sided markets in the conditions of the 4 industrial revolution. Representatives: P. Belleflamme, E. Toulemonde, E. Hovenkamp, S. Banerjee, S Gollapudi, K Kollias, C Lacan, P Des-met, C. Mungal, P. Vassilakopoulou, M. Grisot, A. Ig-natyuk and others. Contribution to the emergence of the multi-sided markets theory: - the features of competition in multi-sided markets; - security of data in multi-sided markets - segmentation of the multi-sided market - e-health - features of antitrust policy in multi-sided markets - taxation of platforms - risks of multi-sided markets - crowdsourcing's platforms [3,8,9,10].
With the start of the fourth industrial revolution, which involves the continuous introduction of innovations in all types of economic activity, in our opinion, their began a new stage in the study of multi-sided markets and platforms. The fourth industrial revolution opens up the global economic system with broad opportunities for growth, but at the same time it puts absolutely new challenges. The development of technologies and new production schemes changes economic relations, companies are forced to adapt to the changing demands of the consumer, which causes the transformation of the classical market into the network one all branches of the economy. Today, in order to occupy leading positions in the market, firms are constantly forced to stimulate demand and maintain positions in the market through the constant introduction of innovations. Analyzing the latest research on multi-sided markets, we can conclude that the relevance of this issue is increasing, as more and more classical markets acquire the features of multi-sided's, which sets new research directions for researchers, among which one can distinguish: the study of segmentation of the multi-sided market, the analysis of distribution of taxes on platforms, the need the paradigmatic changes in competition policy in multi-sided markets, the need to improve anti-monopoly policy in multi-sided markets, the characteristics of the provinces crowdsourcing's platforms, research product differentiation in multi-sided markets,
28 Wschodnioeuropejskie Czasopismo Naukowe (East European Scientific Journal)# 4(32), 2018 ssakH
especially the introduction of multi-platforms health care markets, security of personal data on multi-sided markets and others. (see Table 1).
Table 1
New directions of research of multi-sided markets
Latest research on multi-sided markets Subject matter of research
S. Banerjee, S. Gollapudi, K. Kollias "Segmenting two-sided markets" Developing a market segmentation algorithm to maximize the number of transactions on the market (platform profit) and overall welfare.
E. Hovenkamp "Antitrust Policy for Two-Sided Markets" limiting competition on one side can lead to an increase in overall welfare.
P. Belleflamme, E. Toulemonde "Tax incidence on competing two-sided platforms" Developing a model that identifies the effects of 3 types of taxes: individual tax per user, ad valorem revenue taxes generated by users, taxes on transactions of network effects caused by users on the other side of the market on competing multi-sided platforms.
N. Just "Governing online platforms: Competition policy in times of platformization" The need for paradigmatic changes in competition policy in multi-sided markets, focusing on non-price competition.
P.Vassilakopoulou, M. Grisot, T.Jensen, and others "Building National eHealth Platforms: the Challenge of Inclusiveness" Characteristics of the business platforms initiated and implemented by the state in the field of health care, for example by Scandinavian countries: Denmark, Norway and Sweden.
R. Dolzhenko "Some issues of pricing on multi-sided crowdsourcing platforms" Analysis of approaches to the definition of crowdsourcing, effective pricing at crowdsourcing platforms as a special kind of multi-sided platform, isolating pricing factors that can affect the effectiveness of technology.
A. Borovkova "Modeling the behavior of the company, which applies the strategy of product differentiation in the bilateral market, taking into account the uncertainty in the assessment of the quality of goods" Developing a model that includes the ability to create multiple versions of your product through the intermediary company (agent interaction platforms). The value of this strategy lies in the fact that it allows the reseller to efficiently divide one of the groups of buyers into two subgroups, depending on their assessment of the value of the supplyed product.
Source: compiled by the author alone
Ul
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29
Most scholars point out that the theory of multi-sided markets arose on the basis of studies of the theory of networks and network connections, however, after analyzing the evolution of research, it can be argued that the theory of multi-sided markets arose and grows on the basis of the theory of network society, the theory
Multi-sided market theory
Two-sided market the-
I
Generalized matching theory
of transaction costs, the theory of games, behavioral economics theory, theory of adaptive expectations, etc. (see Fig. 1). It is the results of the research of the basic theories of the XX century. gave an opportunity to identify the main features of bilateral markets and analyze their features in contemporary conditions.
Theory of network society
The theory of networks and network connections
Theory of transaction cost
Game theory
Behavioral economics Theory
The theory of adaptive expectations
Fig. 1. The impact of economic theories on the formation of multi-sided markets Source:compiled by the author alone
The theory of adaptive expectations and the game theory was used by scientists to create the basic models for determining the equilibrium price, the function of the profit of the platform on the multi-sided market (J. Tyrol, J. Rochet, M. Armstrong, J. Wright, etc.). S. Leibovitz, S. Margolis identified the impact of technological progress on the increasing importance of network effects and reducing transaction costs.
The theory of network society and network connections is inextricably linked with the development of multi-sided, since it allows us to determine causal relationships that arise between market participants.
The construction of mathematical and computer models for the analysis of multi-sided markets by such scholars as G. Weil, J. Choi, N. Just is based on the standard models of the game theory of that are interpreted according to new conditions.
In our opinion, the most urgent issue regarding the study of multi-sided markets at the present stage of evolution is the definition of the features of competition, since the use of business platforms radically changes competitive relations, which is due to the dynamism and constant development of innovations in modern markets. Competition research is the basis for improving antimonopoly legislation and the formation of an effective mechanism for state regulation of multi-sided markets in Ukraine and in the world.
In the scientific literature, competition research in two- and multi-sided markets started at the beginning of the 21 century, due to the novelty of the scientific direction, but it is worth noting the contribution to the development of the issue by such scholars as: J.Tirol and J. Rochet, M. Armstrong and J. Wright, A. Shas-tiko, E. Parshina, B. Julien, J. Egezkel, H. Khalaburdy, E. Hovenkamp, J. Choi etc.
In the writings, J. Tirol and J. Rochet considered the two-sided market as a monopolistic platform, and noted that the existence of competition on the market could lead to such price structure that provides lower
social welfare than when one platform is operating on the market. Only a monopoly on the platform side ensures the growth of social welfare. However, the authors analyzed two-sided markets with the participation of platforms at an early stage of development, and only in such areas as telecommunications, mobile communications, information technology, but in connection with the development of innovations in the creation of platforms in new industries, there is a need to analyze the situation on the market when there is a high concentration of participants, and also when the state is a monopolist on the market and the price of entrance for participants is equal to 0 [8,9,10].
M. Armstrong and J. Wright were one of the first to study competition in two-sided markets, where competition between platforms is strong enough. Previously, scholars said that the platform was a certain monopoly, which increased social welfare due to its uniqueness, and does not require state regulation. M. Armstrong and J. Wright begin to look at situations in the market where there is competition not only between sellers and buyers, but also between similar platforms. The authors first introduced the concept of "multi-home", which in translation can be interpreted as "multiple addressing". Multihome is a two-way multi-sided market where one party can use different platforms depending on the preferences that create competition between platforms in the same market [2,3,8,9].
Economist J. Choi has developed a model that allows you to identify the main steps that companies use to "tie" the user to their platform and prevent multi-addressing from either side.
An important contribution to the study of platform competition is the publication of Russian scholars, in particular, A. Shastiko, E. Parshina and O. Kovalenko. The researchers substantiate the need to improve the mechanism of state regulation of multi-sided markets in order to provide conditions for the development of competition through the prism of the ratio of research
30 Wschodnioeuropejskie Czasopismo Naukowe (East European Scientific Journal)#4(32), 2018
results in the area of multi-sided markets, product and geographic boundaries of the market, barriers to entry and market power of the participants.
Conclusions:
The formation of the theory of multi-sided markets can be conventionally divided into 5 main stages: research of networks and network connections in various branches of science, research of network effects, study of the essence of classical two-sided markets, research of two-sided markets with participation of business platforms, research of multi-sided markets under globalization.
After analyzing the evolution of the research, it can be stated that the theory of multi-sided market arose and developed based on the theory of network society, transaction costs theory, game theory, behavioral economics theory, the theory of adaptive expectations and others. It is the results of the research of the basic theories of the XX century that gave an opportunity to identify the main features of two- and multi-sided markets and analyze their features in modern conditions.
After analyzing the study of competition in multi-sided markets, one can conclude that the improvement of information and communication technologies makes price competition methods less effective compared to traditional market structures (increasing the price elasticity of demand for the product or service), but the importance of non-price methods is growing.
The nature of competition in multi-sided markets is changing. If earlier, each market participant tried to maximize its own profit, today cooperation between the participants is a key to success, since maximizing the network effect is achieved through joint efforts. Market participants together create value, and subsequently distribute it among themselves. The platform maximizes profits, avoiding the devastating effects of competition, but at the same time supports it between the parties platform.
Literary references.
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УДК 338.46
ture [Electron resource] / N. Rozanova - Mode of access to the resource: http://regconf.hse.ru/up-loads/8e202dbee1da87a7b616ae743ef882a9c439b257. pdf
3. Ignatyuk A. Competitive relations in the markets in the conditions of the 4th industrial revolution / A. Ignatyuk. // Modern mechanisms of realization of competitive policy of Ukraine in the conditions of globalization: International scientific and practical conference. - 2016 - №1. - P. 52-54.
4. Evans P., Gawer A. The Rise of the Platform Enterprise: A Global Survey. 2016. The Center for Global Enterprise. URL: http://thec ge.net/archived-pa-pers/the-rise-of-the-platform-enterprisea-global-sur-vey/
5. Rysman, M. The economics of two-sided markets. The Journal of Economic Perspectives, 23(3), P. 125-143.
6. Rochet J.-C., Tirole J. 2003. Platform competition in two-sided markets. Journal of European Economic Association 1 (4): 990-1029.
7. Rochet J.-C., Tirole J. 2006. Two-sided markets: An overview. RAND Journal of Economics 35 (3): P. 645-667.
8. Newman, J. M. (2015). Antitrust in zero-price markets: Foundations. University of Pennsylvania Law Review, 164, P. 149-206.
9. Just, N. (2015). Competition/Antitrust/Anti-monopoly Law. In R. Mansell, & P. H. Ang (Eds.). The International Encyclopedia of Digital Communication and Society P. 1-14.
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13. Ignatyuk, A. Model of network effects and their practical application / A. Ignatyuk, V. Ignatyuk // Letter of Inventions to the Institute of Traditional and Applied Economics. Emotional sciences. - 2012. - Exp. I (45) .- P. 405-418.
Е.Н. Лейман
Московский энергетический институт Научный руководитель: В.К. Лозенко
ФОРМИРОВАНИЕ ЦЕЛЕЙ И ЗАДАЧ УПРАВЛЕНИЯ СТОИМОСТЬЮ ИМУЩЕСТВЕННОГО
КОМПЛЕКСА ВУЗА
Аннотация: В статье приведены предпосылки, определяющие необходимость совершенствовать имущественный комплекс вуза. Разработан механизм оценки задач по совершенствованию имущественного комплекса для обеспечения развития вуза и повышения его конкурентоспособности. Даны рекомендации формирования целей и задач управления стоимостью имущественного комплекса вуза.
Ключевые слова: имущественный комплекс, управление стоимостью, стратегический менеджмент.
