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Artificial monopolies and their main forms. Oligopoly and monopoly: essence, characteristics, advantages and disadvantages

Under this conventional name (which separates these organizations from natural monopolies) refers to associations of enterprises created for the sake of obtaining monopolistic benefits. These monopolies deliberately change the structure of the market:

a) create barriers to entry of new firms into the industry market;
b) limit outsiders (enterprises that are not included in monopolistic associations) access to sources of raw materials and energy resources;
c) create a very high (compared to new firms) level of technology;
d) use larger capital (giving a greater effect on the growth of scale of production);
d) “swamp” new companies with well-placed advertising.

Artificial monopolies take a number of specific forms. The simplest forms are cartels and syndicates.

There are several reasons why a monopoly exists.

First reason:"natural monopoly". If it costs less to produce any volume of output by one firm than to produce it by two or more firms, then the industry is said to be a natural monopoly. And the reason here is economies of scale - the more products produced, the lower their cost.

The second reason: A single firm has control over some rare and extremely important resource, either in the form of raw materials or knowledge, protected by patent or kept secret. Example: the De Beers diamond monopoly rests on control over raw materials; Xerox controlled the process of making copies, called xerography, because it had knowledge of the technology, in some cases protected by patents.

Third reason: government restriction. Monopolies exist because they buy or are given the exclusive right to sell a certain good. In some cases, the state reserves the right to monopoly: in some countries, only state monopolies can sell tobacco.

Since monopolism in the 20th century appeared as a very “capacious” phenomenon in structure and content, several approaches to its classification have already emerged.

The most famous is the classification of the type of monopolism in economics by A. Livshits. Based on the analysis of modern world economic theory and practice, Livshits considers it legitimate to identify at least 6 main varieties of this phenomenon:

monopolism, growing out of competition, based on the concentration of production and capital;

technological (or natural) monopolies and oligopolies, characteristic of public utilities, as well as the metallurgy, electric power, railway transport, etc. industries;

monopolism caused by differentiation of similar products produced;

monopolism of enterprises leading in certain areas of modern scientific and technological progress;

natural state monopolies (such as the state monopoly on the issue of money, on the sale of certain types of consumer goods of inelastic demand, etc.);

monopoly, characteristic of the administrative-command type of economy.

Probably, each of us has come across the concept of monopolization in certain areas of the economy at least once in our lives. We know that in almost every state there is an antimonopoly body designed to tirelessly monitor economic trends towards the emergence of monopolistic enterprises on the market. We also heard that natural and artificial monopolies are the subject of study by economists. In general, most of us have a fairly strong attitude towards the topic of monopolization of anything as a negative phenomenon. So what is a monopoly - natural and artificial, and what is it used for?

Signs of monopolization

From the point of view of economic theory, a monopoly market is characterized by the following features:

the presence within one industry of a single producer of any product or service;
the products of a monopolist enterprise have unique properties and do not have similar analogues or substitutes;
the presence of barriers (artificial or natural character), preventing new producers from entering the market;
determination of the cost of products and the volume of their output by only one manufacturer.

In theory, it is quite possible to build such a model of economic relations, but to find it in practice is almost impossible. That is why forms of natural and artificial monopoly are considered conditional market structures.

What is the difference between an artificial monopoly and a natural one?

There are two main types of artificial monopolies:

the former are based on an increase in the concentration of production;
the latter are based on the grant of various patents, licenses and other intellectual property rights.

An artificial monopoly that has grown on a production base is distinguished by the high efficiency of the process of production of goods and services. This occurs due to the fact that, having overcome competition, enterprises equipped with the most advanced technical base and low operating costs enter the market. Examples of artificial monopoly of this type are found in real life, but not very often. Here we can talk about companies that have reached a level of material, technical base and management that allows them to reduce the cost of manufacturing products. Accordingly, its cost for the end buyer is reduced so much that it simply makes no sense for other enterprises in the industry to produce similar products.

An artificial monopoly of the second type arises due to the granting of patents and permits to only one enterprise to produce any product. This may concern various types of inventions, know-how, or limited access to a certain resource. Such artificial monopolies have forms based on preferences, including those from the state, and exist in most countries of the world.

For example, let's look at this situation. In Moscow, as everyone knows, one of the The type of urban transport is the metro. This is a variant of a natural monopoly, since it is simply impossible to create competition in this segment. Even if we ignore the enormous costs of building a second metro, it is almost impossible to do this due to the lack of such technical capabilities. On the other hand, the capital's ground transport is provided by the Mosgortrans company, and this is purely an artificial monopoly. After all, it is quite possible to launch other competing carriers onto the market, but the authorities do not give such permission. This is how artificial monopolies are born today in Russia and other countries of the world. And, you see, some of them have an objective meaning.

Based on their origin, there are two main types of monopoly: natural and artificial monopoly. A natural monopoly arises and exists naturally, according to objective conditions. For example, sh- in industries (automotive, gas, aluminum), where large-scale production is economically justified, providing greater efficiency, lower costs, and therefore the ability to buy products at lower prices. Or ("where it is more expedient to have single economic complex (city metro, water supply), because the division of these complexes into separate competing enterprises would lead to unjustified duplication of capital structures and increased costs. Finally, ("monopoly is natural in the extraction rare minerals, production rare varieties of tea, grapes, in the field of original artistic trades, etc.

Another thing - artificial monopoly . This is a man-made monopoly specially created by concentrations in someone's hands of a certain economic activity. At the same time, in order to obtain market power and super-profits, strong companies, or (A) suppress their competitors (through, say, boycott or dumping); or (b) carry out the so-called hostile takeover rivals (by buying their shares, sometimes anonymously); or (V)voluntarily unite with each other (usually through mutual exchange of shares) in different unions, so as not to compete, but to own the market together in an orderly and profitable manner; or finally (G) create their own branches- so-called affiliated (subsidiary) companies. Historically, there have been three main forms monopolistic unions: cartels, syndicates and trusts. The main differences between them are the breadth of agreements between the participants and the density of their association. So, the simplest one is cartel. Its participants (producing homogeneous products - oil, sugar, coffee, etc.) agree on the division of markets, trade quotas and price levels (who, where, how much and how much they sell). At the same time, they are completely maintain their economic independence- both industrial and commercial. A striking example is OPEC.

However, the civilized world limits cartel agreements. Under these conditions, monopolists can resort, for example, to collusion(tacit agreement with each other) or use the so-called price leadership(collusion without collusion: the leading firm in a given industry sets the desired price level, and other companies follow it “by default”).

Others are also used to increase income price tricks . Thus, for related products that complement each other (say, a printer and paint for it) SCH-"linked price system": the price for the main product (printer) is relatively low (to stimulate sales), and for the accompanying product (paint) it is overpriced (to obtain compensating excess profits). Another example: monopolists first sell new products at increased prices." skimming prices"(for the “selected”, rich and money-wasting public), and then reduced ones are used" penetration prices"- to win the wallets of wide layers of prudent buyers who live by the German proverb: “he who works like a horse does not spend money like a donkey.”

The second, closer form of union is syndicate. It, like a cartel, also usually unites producers of homogeneous products. But in addition to his cartel agreement(about quotas and prices) they organize joint sales of products and purchase of raw materials through general distribution network(the commercial independence of the participants, therefore, is lost here).

So, those who created syndicate yoghurt manufacturers can (A) reduce mutual competition, (b) reduce the price of milk purchased from farmers and at the same time (V) it costs more to sell your products. As a result, they redistribute the income of both suppliers and consumers in their favor.

Finally, the third and closest union - trust. Enterprises included in it unite completely under unified management. It is these giant super-monopolies that dominated over consumers, were typical for the USSR economy. Today, trusts are recognized as the most powerful and antisocial manifestation of monopolism and are prohibited in most countries of the world.

Sometimes they sin with monopolism concerns - large diversified economic complexes, which include industrial, trading, banking and other enterprises. Their unification around itself provides a special institution - holding (from English, hold - to hold, to own) is the parent (holding) company that owns the shares of the group members and thereby influences their activities. Many concerns rely on a dense network of small and medium-sized enterprises and are highly efficient primarily due to the flexible maneuvering of capital and directing it to the most profitable sectors of the economy. At the same time, a monopoly may develop in certain areas of the concern's activities.

In conclusion, it is important to mention this special form economic unions, How consortium(from Latin consortium - participation, community). This temporary association of industrial, banking and other companies to implement joint large business projects (construction of a tunnel, railway, creation of a new airliner, space station, etc.).

Dumping (from English, dumping - dumping) is a massive release of goods onto the market or securities onto the stock exchange at reduced prices with the aim of ruining and ousting competitors and conquering the market.

MINISTRY OF EDUCATION OF THE RUSSIAN FEDERATION

TATAR INSTITUTE FOR BUSINESS PROMOTION

COURSE WORK

Course: "Economic Theory"

on the topic of: “Features of monopolism and antimonopoly regulation

in Russia"

Performed:

group student

Shumilova Natalya Vladimirovna

Checked:

Ph.D. Associate Professor Shamaeva N.P.

Delivery date:

Defense date:

Izhevsk, 2003

Introduction........................................................ ........................................................ .......... 3

1. History of the emergence and development of monopolies.................................................... 6

2. The essence of monopoly.................................................... ....................................... 8

2.1. Types of monopolies................................................... ............................................... eleven

2.2. International monopolies................................................... ............................................... 13

2.3. Monopolistic competition................................................... ............................................ 14

3. Antimonopoly regulation in Russia.................................................... .... 18

3.1. System of state regulation of natural monopolies in Russia 24

Conclusion................................................. ........................................................ ..... thirty

References................................................ ........................... 31

Introduction

A monopoly is the exclusive right to production, fishing, trade and other activities, owned by one person, a certain group of persons or the state. This means that by its nature, a monopoly is a force that undermines competition and the spontaneous market. An absolute monopoly covering the entire economy completely excludes the mechanism of free market competition. In different countries and in different historical periods, different types of monopolies arise in the economy: natural, legal and artificial.

There are five main forms of monopolistic associations. Monopolies monopolize all areas social reproduction: direct production, exchange, distribution and consumption. Based on the monopolization of the sphere of circulation, the simplest forms of monopolistic associations arose: cartels and syndicates. More complex forms of monopolistic associations arose when the process of monopolization extended to the sphere of direct production. On this basis, such a higher form of monopolistic associations as a trust appears.

Monopolies, having an exceptional position, eliminate competitors everywhere, thereby destroying the normal market, reduce the quality of products, ignoring the achievements of scientific and technological progress, and cause a decrease in the overall efficiency of production.

The monopoly of the economy is a serious obstacle to the development of the market, for which monopolistic competition is more typical. It involves a mixture of monopoly and competition. Monopolistic competition represents a market situation in which a significant number of small producers offer similar, but not identical products. Each enterprise has a relatively small market share and therefore has limited control over the market price. The presence of a large number of enterprises guarantees that secret collusion, concerted actions of enterprises with the aim of limiting production and raising prices is almost impossible.

The general form of monopolies develops when an association of entrepreneurs comprehensively, with the help of the state, subjugates the national economy and finds itself in most markets as both the main sellers and the main buyers. At the same time, the state itself acts as the largest monopolist, concentrating in its hands entire industries and productive complexes, such as, for example, the military-industrial complex.

The attitude of the public and the state towards various forms monopolies are always ambivalent due to the contradictory role of monopolies in the economy. Monopolies limit output and charge higher prices due to their monopoly position in the market, which causes misallocation of resources and causes increased income inequality. Monopoly reduces the standard of living of the population. Monopolistic firms do not always make full use of their capabilities to ensure scientific and technological progress (scientific and technological progress). Monopolies do not have sufficient incentives to increase efficiency through scientific and technical progress, since there is no competition.

The most important economic functions of a modern state include the development and implementation of antimonopoly policy. Even in the last century, in many countries monopoly was qualified as an economic crime against society. Accordingly, special laws have been adopted, are being adopted and are being regulated, aimed at preventing or mitigating the negative consequences of market monopolization.

Trying to compensate for the imperfections of the market, the state, resorting to various methods and methods, selects the most adequate for a particular task. The most important of these tasks is to eliminate the consequences generated by market imperfections.

To counter the monopolization of markets and protect competition, the state:

– develops laws on the basis of which it is possible to identify and punish firms caught in monopolization;

– creates organizations that monitor developments in markets and identify cases of monopolization (this activity is carried out by the state antimonopoly committee);

– helps create new firms that can counteract or destroy the monopolization of markets (this is what the Small Business Support Committee does in our country).

In the economic and legal literature on antitrust regulation, it is customary to distinguish two main models: American and European. Russian practice of antimonopoly regulation gravitates more towards the European model. This is reflected in the content of Russian antimonopoly legislation, as well as in the powers and practical activities of federal antimonopoly authorities.

Government regulation plays an important role in maintaining the necessary level of competition in the economy. Three main directions can be distinguished:

– measures aimed at preventing and prohibiting monopolies:

– state regulation of natural monopoly;

– protecting companies from “excessive competition”.

The essence of antitrust policy is a system of laws that restrict the actions of companies, leading to a decrease in competition and the elimination of monopoly. The effectiveness of such a policy depends on three critical elements:

– the nature of the laws themselves;

– interpretation of laws by courts;

– the consistency with which court decisions are implemented.

All three elements change over time and, accordingly, the essence of antimonopoly policy changes.

Of course, my course work is purely theoretical in nature, but this topic is of the most interest to me. In my work I study issues that are critical to our economy. For a long time We had a command economy in our country. They did not pay attention to such concepts as competition, monopoly, natural monopoly, because monopoly was, one might say, the goal of the then economy.

All of the above determines the relevance of the topic chosen for research.

The purpose of this course work is the study of monopolization and antimonopoly regulation in Russia.

1. Find out the essence of monopolization and the reasons for its occurrence.

2. Determine the role of government regulation in Russia and the features of antimonopoly legislation.

In connection with the above objectives, the first chapter examines the history of the development of monopolism, the second chapter discusses the essence of monopolization of the economy, and the third discusses the system of antimonopoly regulation.

1. History of the emergence and development of monopolies

The history of monopolies reaches back to ancient times. Monopolistic tendencies in different forms and to varying degrees appear at all stages of development of market processes and accompany them. But their modern history begins in the last third of the 19th century (especially during the economic crisis of 1873). The interconnectedness of the phenomena - crisis and monopolies - indicates one of the reasons for monopolization, namely: the attempt of many firms to find salvation from crisis shocks in monopolistic practice. It is no coincidence that monopolies in the economic literature of that time were called “children of the crisis.”

Representatives of the German historical school were the first to draw attention to the process of increasing monopolization of the economy, and this is not accidental, since it was they who, in their research, focused on describing individual economic processes and collecting factual material. They called this stage of development of capitalism imperialism (imperium - Latin - power) by analogy with the process of formation of past empires - Roman, Persian, etc.

There are two ways to form monopolies: through capitalization of profits or through mergers and acquisitions. Recently, there has been a significant predominance of the latter method.

The methods of concentration and centralization of capital used in the 19th century did not provide sufficient concentration of capital for efficient mass production. The concentration of production and the creation of new large plants and factories required a sharp expansion of the scope of capitalist property. The method of such a rapid expansion of the size of capitalist property under single control existed for a long time, but only under the influence rapid growth productive forces they have become widespread and decisive. This is, first of all, a joint-stock form of organization of capitalist companies.

Monopolies also appeared in Russia, but their development was unique. The first monopolies were formed in the 80s of the 19th century (Union of Rail Manufacturers, etc.). The uniqueness of the development lay in the direct intervention of government bodies in the creation and operation of monopolies in industries that meet the needs of the state economy, or were of particular importance in its system (metallurgy, transport, mechanical engineering, oil and sugar industries). This led to the early emergence of state-monopoly tendencies. In the 80s and 90s of the 19th century, at least 50 different unions and agreements operated in industry and water transport. Monopolistic concentration also occurred in banking. Foreign capital had an accelerating effect on the process of monopolization. Until the beginning of the 20th century, the role of monopoly in the economy was small. The economic crisis of 1900–1903 had a decisive influence on their development. Monopolies gradually covered the most important industries and most often formed in the form of cartels and syndicates in which sales were monopolized while their participants retained production and financial independence. Associations of the trust type also arose (the Br Nobel partnership, the imprecise trust, etc.). The absence of legislative and administrative norms regulating the activities of monopolies made it possible for the state to use legislation against them that formally prohibited the activities of monopolies. This led to the proliferation of officially unregistered monopolies, some of which, however, operated with the consent and direct support of the government (Prodparovoz, military-industrial monopolies). The illegal situation created inconveniences (restrictions on commercial and legal activity) and therefore they sought legalization using permitted forms of industrial associations. Many large syndicates - Prodmed, Produgol, Prodvagon, Krovlya, Lsed, Provolka, ROST, etc. - were joint-stock enterprises in form, the actual goals and activities of which were determined by special, unspoken counterparty agreements. During the period of industrial boom “1910 – 1914.” monopolies continued to grow. The number of commercial and industrial cartels and syndicates was 150-200. There were several dozen of them on transport. IN banking monopolies many of the largest banks have become, whose penetration into industry, along with processes and the combination of production, contributed to the strengthening and development of trusts, concerns, etc.

Monopolies were eliminated as a result of the October Revolution, during the nationalization of industry and banks. The Soviet state partially used the accounting and distribution bodies of monopolies when creating bodies for managing the national economy.

During Russia's transition to a market, monopolies and problems associated with them arose again.

2. The essence of monopoly

Monopoly (from mono - one and Greek poleo - sale) exclusive right in a certain area, state, organization, company.

Monopoly - large business associations (cartels, syndicates, trusts, concerns, etc.) that are privately owned (individual, group or joint stock) and exercise control over industries, markets and the economy based on a high degree of concentration of production and capital in order to establish monopoly prices and extraction of monopoly profits. Dominance in the economy serves as the basis for the influence that monopolies have on all spheres of life in the country.

If we paid attention to monopolistic formations in industrial production, then these are individual large enterprises, associations of enterprises, business partnerships that produce a significant amount of a certain type of product, due to which they occupy a dominant position in the market; get the opportunity to influence the pricing process, achieving the most favorable prices for themselves; receive higher (monopoly) profits.

Consequently, the main feature of a monopoly formation (monopoly) is the occupation of a monopoly position. The latter is defined as the dominant position of an entrepreneur, which gives him the opportunity, independently or together with other entrepreneurs, to limit competition in the market for a certain product.

The characteristic features of a monopoly are the following:

1. An industry consists of one firm, which is the sole producer of a given product or provider of a service.

2. From the first sign it follows that the buyer must purchase the product from the monopolist or do without it. The fact that there are no close substitutes for the monopolized product is of great importance for advertising. However, a monopolist often does not need to use advertising.

3. In conditions of monopolized production, the manufacturer dictates the price and has the ability to manipulate the quantity of the product offered.

4. The existence of a monopoly presupposes the presence of barriers to the entry into the industry of similar industries created by other manufacturers. These barriers may be economic, technical or legal.

When analyzing a monopoly, it is important to take into account the ambiguity of the term “monopoly” itself. First of all, one cannot deduce the essence of this phenomenon from the etymology of the word “mono” - one, “polio” - I sell. In reality, it is almost impossible to find a situation where there would be one single company operating on the market producing goods that do not have substitutes. Consequently, the use of the term “monopoly”, and even more so “pure monopoly”, is an abstraction. Even the complete absence of competitors within the country does not exclude their presence abroad. Therefore, one can imagine a pure, absolute monopoly rather theoretically. A pure monopoly is characterized by the presence of only one firm producing a product for which there are no close substitutes, i.e. unique product. The firm exercises significant control over the price of its product. By adjusting the price by changing the supply of the product, the firm does everything to prevent a new firm from entering its industry, i.e. blocks its industry. There is almost no commercial advertising of the product.

One should not equate pure monopoly with monopoly (market) power. The latter means the firm can influence price and increase economic profit by limiting the volume of production and sales. When people talk about the degrees of market monopoly, they usually mean the strength of the market power of individual firms present in this market.

How does a monopolist behave in the market? He has complete control over the entire volume of product output; if he decides to increase the price, he is not afraid of losing part of the market, giving it to competitors who set lower prices. But this does not mean that he will endlessly increase the price of his products.

Since a monopolist firm, like any other firm, strives to obtain high profits, when deciding on the selling price, it takes into account market demand and its costs. Since the monopolist is the only producer of a given product, the demand curve for its product will coincide with the market demand curve, and the marginal revenue curve lies below it. This happens because the monopolist is the only manufacturer of products on the market and a representative of the entire industry; when he reduces the price of products to increase sales, he is forced to reduce it for all units of goods sold, and not just for the next one (Fig. 1).

Rice. 1. Price and marginal revenue of a monopolist firm: D - demand; M.R. – marginal income.

The difference between price and marginal revenue depends on the elasticity of demand for the firm's products: the more elastic the demand, the less opportunities for additional profit, and the less the firm's market power.

The structure of the market and the degree of its monopolization must be taken into account by the company when choosing an operating strategy. The emerging Russian market is characterized by a highly monopolized structure, supported by the creation in recent years of various kinds of concerns, associations and other associations, one of the goals of which is to maintain high prices and ensuring a “quiet existence”. At the same time, the expected increase in the openness of the Russian economy to the world economy will lead to competition with foreign firms and will significantly complicate the position of domestic monopolists.

The higher the profit of a monopolist enterprise, the more people want to enter the industry, for example, by expanding production and sales of substitute goods. The entry of new firms into the market with products that can effectively replace the monopolist's products leads to a switch in consumer demand. In such conditions, the monopolist will be forced to reduce the price and give up part of the profit in order to maintain its position in the market.

Legislative barriers to entry into the industry also do not last forever. To support government officials who express their interests, monopolists spend significant funds, which are included in costs, increasing them. Therefore, in a developed market economy, the position of monopolistic firms is not as “cloudless” as it seems at first glance.

Many economists have argued that large firms with significant power are a desirable phenomenon in economics because they accelerate technological change, since firms with monopoly power can spend their monopoly profits on research to protect or enhance their monopoly power. By engaging in research, they provide benefits to both themselves and society as a whole. But there is no convincing evidence that monopolies play a particularly important role in accelerating technological progress, since monopolies can delay the development of technological progress if it threatens their profits. Possessing an exceptional position, monopolies eliminate competitors everywhere, thereby destroying the normal market, reduce the quality of products, ignoring the achievements of scientific and technical progress, inflate prices, ensuring their own excess profits, and cause a decrease in the overall efficiency of production. The disadvantages of monopolism are everywhere stronger than their advantages.

2.1. Types of monopolies

The type of monopoly depends on the market structure and the form of competition. There are different types of monopoly, which can be classified into three main ones: natural, legal, artificial.

Natural monopoly.

It is owned by the owners and economic organizations, having at their disposal rare and non-freely reproduced elements of production (for example, rare metals, special land plots for vineyards). This also includes infrastructure sectors that are of particularly important and strategic importance for the entire society (railway transport, military-industrial complex, etc.). The existence of natural monopolies is justified by the fact that they provide enormous economic benefits from large scale production. Here they create goods at lower costs compared to the resource costs that would be incurred by many similar firms.

Legal (from Latin legalis - legal) monopolies are formed on a legal basis. These include the following forms of monopolistic organizations:

a) patent system. A patent is a certificate issued by the government of a country to a citizen for the exclusive use of an invention. A patent is also a document that gives the right to engage in fishing or trade.

c) trademarks - special designs, names, symbols that allow you to identify (identify) a product, service or company (competitors are prohibited from using registered trademarks).

Artificial monopolies.

This conventional name (which separates these organizations from natural monopolies) refers to associations of enterprises created to obtain monopolistic benefits. These monopolies deliberately change the structure of the market:

a) create barriers to entry of new firms into the industry market;

b) limit outsiders (enterprises that are not included in monopolistic associations) access to sources of raw materials and energy resources;

c) create a very high (compared to new firms) level of technology;

d) use larger capital (giving a greater effect on the growth of scale of production);

d) “swamp” new companies with well-placed advertising.

Artificial monopolies take a number of specific forms. The simplest forms are cartels and syndicates.

Cartel- a union of several enterprises of the same industry, in which its participants retain their ownership of the means and products of production, and the created products themselves sell on the market, agreeing on a quota - the share of each in the total output of products, sales prices, distribution of markets, etc.

Syndicate– merger of a number of enterprises producing homogeneous products; here, ownership of the material conditions of business is retained by the members of the association, and the finished products are sold as common property through an office created for this purpose.

More complex forms of monopolistic associations arise when the process of monopolization extends to the sphere of production. On this basis, such a higher form of monopolistic associations as a trust appears.

Trust- this is an association of a number of enterprises in one or more industries, the participants of which lose ownership of the means of production and the manufactured product (production and commercial independence). That is, production, sales, finance, management are combined, and for the amount of invested capital, the owners of individual enterprises receive trust shares, which give them the right to take part in management and appropriate a corresponding part of the trust’s profits.

Diversified concern- this is an association of dozens and even hundreds of enterprises in various sectors of industry, transport, trade, the participants of which lose ownership of the means of production and the product produced, and the main company exercises financial control over the other participants of the association.

In the 60s, conglomerates appeared and began to develop in the United States and some capital countries, that is, monopolistic associations formed by absorbing the profits of diversified enterprises that did not have technical and production unity.

The essence and characteristics of all types of monopolistic associations are clearly manifested in the goals and nature of their behavior.

There are several reasons why a monopoly exists.

Since monopolism in the 20th century appeared as a very “capacious” phenomenon in structure and content, several approaches to its classification have already emerged.

Of the domestic classifications, the most famous is the classification of the type of monopolism in economics by A. Livshits. Based on the analysis of modern world economic theory and practice, Livshits considers it legitimate to identify at least 6 main varieties of this phenomenon:

1) monopolism, growing out of competition, based on the concentration of production and capital;

2) technological (or natural) monopolies and oligopolies, characteristic of public utilities, as well as the metallurgy, electric power, railway transport, etc. industries;

3) monopolism caused by differentiation of similar products produced;

4) monopolism of enterprises leading in certain areas of modern scientific and technological progress;

5) natural state monopolies (such as the state monopoly on the issue of money, on the sale of certain types of consumer goods of inelastic demand, etc.);

6) monopolism, characteristic of the administrative-command type of economy.

Monopolies can also be classified by type:

1) closed monopoly. It is protected from competition by legal restrictions. An example is the US Postal Service's monopoly on first class mail. Other options for the emergence of a closed monopoly are patent protection, the institution of copyright;

2) open monopoly. In this case, the company becomes the sole supplier of a product for some time, without having any special protection from competition. Companies that enter the market with new products for the first time often find themselves in situations of open monopoly.

2.2. International monopolies

A special type of monopoly is international monopolies . The economic basis for the emergence and development of international monopolies is the high degree of socialization of capitalist production and the internationalization of economic life. There are two types of international monopolies.

The first is transnational monopolies. They are national in capital and control, but international in their scope of activity. For example: the American concern Standard Oil of New Jersey, which has enterprises in more than 40 countries, assets abroad account for 56% of their total amount, sales volume 68%, profits 52%. The overwhelming majority of the production facilities and sales organizations of the Swiss food concern Nestlé are located in other countries. Only 2-3% of total turnover comes from Switzerland.

The second type is actually international monopolies. A feature of international trusts and concerns is the international dispersion of share capital and the multinational composition of the core of the trust or concern. For example: the Anglo-Dutch chemical and food concern Unilever. Their number is not significantly large, since combining capital of different nationalities is associated with great difficulties: differences in the laws of countries, double taxation, opposition from any government, etc. The main forms of association: the establishment of a joint company by monopolies from different countries in the form of an independently existing trust or concern; acquisition by one monopoly of a controlling stake in a foreign monopoly; direct merger of assets of firms from different countries (de jure merger); unification of companies of different nationalities through “quasi-mergers”. The latter is carried out through the exchange of shares between firms that retain legal independence, either through the mutual appointment of administrators, or through the collective ownership of shares in joint venture companies. A merger of this type is the most common form of formation of international trusts and concerns. They help multinational firms that combine operating activities not only avoid double taxation, but also maintain formal independence, corporate structure, individual characteristics of production and sales, their own trademarks, the former location of the headquarters of the parent companies and affiliation with the national legislation of their countries.

2.3. Monopolistic competition

Monopolistic competition is a common type of market that is closest to perfect competition. The ability for an individual firm to control price (market power) is negligible (Fig. 2).

Fig.2. Strengthening market power.

Signs of monopolistic competition:

1) There are enough firms that the share of each in the total market volume is small, and accordingly, the control of each firm over the price is small.

2) It is almost impossible for firms to collude to limit production volumes and regulate prices.

3) As a rule, a company builds its policy without taking into account the reaction of competitors, since competing firms are quite numerous.

There is differentiation in the market of the product produced by firms. Each given product can have varieties. Product differentiation comes in the following forms:

1) differences in quality, i.e. according to functional parameters and features, materials, individual parts, design, quality of overall work and production of some parts, assemblies, degree of wear and durability, reliability of operation;

2) differences in terms of sale and services provided: quality of service, speed of service, service programs;

3) differences in the placement of the product and the degree of its accessibility to customers; are these differences based on the location of the store or shopping center(small street, central square, busy highway intersection, business part of the city), by opening hours (round the clock, with or without lunch breaks, weekends, seasonal sales);

4) imaginary product differences created through the use of original packaging, sales promotion through advertising, the use of well-known trademarks and signs.

The degree of price control is relatively limited a large number firms participating in monopolistic competition.

Entering an industry with monopolistic competition is usually quite easy. There is no need for relatively large capital. However, the financial costs are higher than with pure competition, since investments are required in developing your own variety of product and in advertising.

Price and non-price competition accompany each other. In price competition, a special place is occupied by the search and subsequent advertising of one’s trademark, brand, or brand.

Signs of monopolistic competition in their purest form are observed in retail trade and light industry.

The demand for the products of firms operating in conditions of monopolistic competition is not completely elastic, but its elasticity is high. For example, monopolistic competition includes a market sportswear. Adherents of Reebok sneakers are willing to pay a higher price for its products compared to other companies, but if the price difference turns out to be too significant, the buyer will always find analogues from lesser-known companies at a low price. The same applies to products from the cosmetics industry, clothing, medicines, etc.

The competitiveness of such markets is also very high, which is largely due to the ease of access of new firms to the market. Let us compare, for example, the market for steel pipes and the market for washing powders. The first is an example of oligopoly, the second is monopolistic competition.

Entering the steel pipe market is difficult due to large economies of scale and large initial capital investments, while the production of new varieties of washing powders does not require the creation large enterprise. Therefore, if firms producing powders earn large economic profits, this will lead to an influx of new firms into the industry. New companies will offer consumers new brands of washing powders, sometimes not much different from those already produced (in new packaging, a different color, etc.).

In monopolistic competitive markets, economic profits and losses cannot last long. In the long run, firms suffering losses will prefer to leave the industry, and high economic profits will stimulate new firms to enter it. New firms, producing products of a similar nature, will gain their market share, and the demand for the firm's goods will decrease.

A reduction in demand will reduce the firm's economic profit to zero. In other words, the long-term goal of firms operating under monopolistic competition is to break even.

The long-term equilibrium situation is shown in Fig. 3.

Rice. 3. Long-term equilibrium of a company under conditions of monopolistic competition: D – demand; M.R. marginal cost; ATC – average gross costs.

The lack of economic profit deprives new firms of an incentive to enter the industry, and old ones of the incentive to leave it. However, in conditions of monopolistic competition, the desire to break even is more of a tendency. In real life, firms can earn economic profits for a fairly long period. This is due to product differentiation. Some types of products produced by firms are difficult to reproduce. At the same time, barriers to entry into the industry, although not high, still exist. For example, to open a hairdresser or engage in private medical practice, you must have the appropriate education confirmed by a diploma.

Is the market mechanism of monopolistic competition effective?

From the point of view of resource use, no, since production is not carried out at minimum costs: production Q 0 reaches a value where the firm’s average gross costs are minimal, i.e. make up the value of Q 1 . However, if we evaluate efficiency from the point of view of satisfying interests, then a variety of goods that reflect the individual needs of people is more preferable to them than monotonous products at lower prices and in large volumes.

The oligopoly market is more loyal, which can be divided into two types: the first type of oligopoly is an industry with exactly the same products and a large enterprise size. The second type of oligopoly is a situation where there are several sellers selling differentiated products. In this case, there is partial control over prices. the market of monopolistic competition with product differentiation assumes that the buyer prefers a certain type of product: he is attracted by this particular variety, quality, packaging, brand, etc. Signs of such a market: many producers, many real or imagined differences in products, very weak control over prices.

3. Antimonopoly regulation in Russia

The negative aspects of monopolism in the economy force modern states to develop and implement antimonopoly policy - a set of measures state power, aimed at preventing, limiting and suppressing monopolistic activities, ensuring equal conditions of competition for all business entities and preventing unfair competition.

State antimonopoly regulation of the economy includes two interrelated areas:

1. Development and adoption of special antimonopoly legislation;

2. Formation of a system of bodies carrying out antimonopoly regulation and monitoring compliance with antimonopoly legislation.

The roots of antitrust regulation go back centuries. The first anti-monopoly law of a general nature, where the term “monopoly” was first used, is considered to be the constitution on prices of Emperor Zeno (483). It said: “We order that no one person should dare to presume to exercise a monopoly on any kind of clothing, or on fish, or on any thing serving as food or intended for other uses.” The Sherman Antitrust Act has been in force in the United States since 1890. It outlaws “every contract and every association, whether in the form of a trust or otherwise, or any secret agreement intended to restrain interstate or foreign commerce.”

In 1914, the Clayton Act was passed, the main provisions of which are:

a) prohibited almost all forms of discrimination in pricing policy;

b) imposed restrictions on the sale and sale of goods with a forced assortment;

c) prohibited the merger of firms through the acquisition of shares of competitors if such actions reduced competition;

d) prohibited the combination of positions on the boards of directors of different firms and business enterprises.

The adopted laws regulate the following key issues: price fixing, mergers of firms and enterprises and restrictions in this area, price discrimination.

In the economic and legal literature on antimonopoly regulation of the economy, it is customary to distinguish between two main models: American and European.

The American model is based on the principle of prohibiting a monopoly as a structural unit, regardless of the socio-economic consequences of its activities. Proponents of this approach, which is called structuralist, argue that an industry that has a monopolistic structure will behave like a monopolist. Consequently, the economic actions of industries with a monopolistic structure will necessarily be negative from a public point of view and should be subject to antitrust laws. This model of antimonopoly regulation mainly assumes a form of enforcement process and prosecution of violators.

The European model, unlike the American one, emphasizes the principle of control over abuse. This approach, called behavioral, focuses not on the structure of the industry, but on the behavior of individual economic entities. This model uses the rule of reason, which declares not every monopoly illegal, but only one whose socio-economic consequences are negative for society. This approach requires the creation of a special system of administrative bodies designed to constantly analyze and monitor the state of competition in various markets. If necessary, these bodies use corrective, regulatory and prohibitive measures of a predominantly administrative nature.

In the last decade, the differences between these two models have been decreasing. At the same time, their convergence is moving towards the European model, when antimonopoly regulation of the activities of business entities is carried out not only on the basis of their relative and absolute sizes, but also taking into account the socio-economic consequences of their activities for society.

Russian practice of antimonopoly regulation gravitates more towards the European model. This is reflected in the content of Russian antimonopoly legislation, as well as in the powers and practical activities of federal antimonopoly authorities. The latter are included in the system in Russia executive power and use mainly administrative and organizational methods for implementing antimonopoly policy.

Antimonopoly regulation in Russia began with the adoption of the RSFSR Law “On Competition and Restriction of Monopolistic Activities in Commodity Markets” on March 22, 1991. This law, which underwent significant revision in 1995, has become a clearly expressed market act in the Russian legal system. In general, antimonopoly legislation consists of the Constitution of the Russian Federation, the said Law, federal laws issued in accordance with it, presidential decrees, decrees and orders of the government.

The system of antimonopoly regulation of the economy includes the following elements:

a) the concept of a monopolist, its qualitative and quantitative characteristics;

b) types of monopolistic activities subject to state regulation;

c) a list of forms of unfair competition that are subject to prohibition;

d) determination of the system of antimonopoly authorities, their tasks, functions and powers;

e) measures of liability for violation of antimonopoly legislation.

The most important element in the system of antimonopoly regulation of the economy in each country is the very concept of a monopolist as a subject whose activities are subject to regulation. In Russian antimonopoly legislation, the content and quantitative criteria of a monopolist are determined through the concept of “dominant position” - central to the Competition Law. According to this Law, a dominant position is the exclusive position of an economic entity or several economic entities in the market for a certain product, giving it the opportunity to exert a decisive influence on the general conditions of circulation of the product in the relevant market or to impede access to it by other economic entities. Currently in Russia, the position of an economic entity whose market share for a particular product is 65% or more is recognized as dominant. In some cases, as determined by the antimonopoly authority, the position of an economic entity whose market share is less than 65% may be recognized as dominant. However, the position of an economic entity whose market share of a particular product does not exceed 35% cannot be recognized as dominant. All of the above-mentioned quantitative characteristics of an economic entity as a monopolist relate to markets for goods that do not have substitutes or interchangeable goods. In relation to markets for other goods, determining the quantitative boundaries of a monopolist does not have a strict and unambiguous solution.

Improvement in the practice of antitrust regulation in developed countries has recently manifested itself in determining the monopolist and its economic power in accounting for the so-called affiliates. Russian antimonopoly legislation also requires the identification and registration of such persons. In particular, the Federal Law “On joint stock companies akh" of December 28, 1995 obliges joint stock companies to keep records of affiliated persons and annually publish in the open press their lists indicating the number and category of shares owned by them (Articles 92, 93).

Affiliated (interdependent) persons are any individuals and legal entities, the relationship between which may have a direct impact on the conditions and economic results of their activities or the activities of the persons they represent.

Another important element in the antimonopoly regulation system is the definition of types of monopolistic activities that represent abuse by an economic entity (or group of individuals) of a dominant position in the market. These include all actions that have or may result in a restriction of competition:

– withdrawal of goods from circulation to create shortages and increase prices;

– imposing contract terms that are unacceptable to the counterparty;

– coercion to conclude “tied contracts”;

– violation of the established pricing procedure;

– creating obstacles to market access for other economic entities;

– establishment of monopolistic high (low) prices;

– unjustified refusal to conclude a contract with individual buyers if there is the possibility of producing the corresponding product, etc.

As one of the types of monopolistic activities subject to prohibition in Russia, agreements of competing economic entities that may have a total market share of a certain product of more than 35% are considered, if such agreements lead to restriction of competition in the form of establishing agreed prices, division of markets, restricting access to market of other sellers. In some cases, agreements that overcome the 35% barrier are permitted if business entities prove that the positive effect of such an agreement exceeds its possible negative consequences for the market.

One of the elements in any system of antimonopoly regulation is a list of forms of unfair competition that are not allowed. In Russia these include:

– dissemination of false information that could cause losses to another business entity or damage its business reputation;

- false information about consumer properties and the place of manufacture of the goods;

– incorrect comparison by an economic entity of its goods with the goods of other economic entities;

– sale of goods with illegal use of the results of intellectual activity, trademarks, brand names;

– receipt, use, disclosure of scientific, technical, production or trade information without the consent of its owner.

An indispensable element of any system of antimonopoly regulation is the totality of antimonopoly authorities, their tasks, functions and powers. In Russia, the main antimonopoly body is the Ministry of the Russian Federation for Antimonopoly Policy and Entrepreneurship Support (MAP), which creates territorial offices in the regions. Its main tasks include:

– assistance in the formation market relations based on competition and entrepreneurship;

– prevention, limitation and suppression of monopolistic activities and unfair competition;

– state control over compliance with antimonopoly legislation.

This body has the right to give binding orders to business entities to stop violations of antimonopoly legislation and to eliminate their consequences, to force their division or segregate structural units from their composition, to terminate or amend contracts that contradict antimonopoly legislation, to conclude an agreement with another business entity. subject, transferring to the federal budget profits received as a result of violation of antimonopoly legislation.

In Western countries, there are known cases of forced dissolution of associations and forced sale of assets to limit the activities of monopolies. But such measures should not be applied thoughtlessly. Not every large-scale production is subject to division. It is harmful to destroy an integrated enterprise, the components of which are tightly connected technologically.

MAP exercises state control over the creation, reorganization, liquidation of commercial organizations and their associations for their compliance with the requirements of antimonopoly legislation. In addition, this body is obliged to monitor compliance with antimonopoly legislation when acquiring shares or interests in the authorized capital of commercial organizations.

The antimonopoly regulation system also includes liability measures for violations of antimonopoly legislation. In Russia, these are mainly administrative and organizational measures, although in some cases more stringent measures are provided.

In the economy of modern states, there are always areas in which preserving and maintaining market competition is inappropriate due to its economic inefficiency or other reasons, including ensuring the system national security countries. Antimonopoly policy, therefore, does not mean the elimination of monopolism altogether. It must be based on a thorough inventory of markets, on their delimitation, on competitive markets and, in principle, non-competitive ones, i.e. those where maintaining monopolies is economically justified. Spheres of the economy excluded from market competition are the so-called natural and state monopolies.

Natural monopolies - a state of the commodity market in which satisfying demand is more effective than the absence of competition due to technological features of production (due to a significant reduction in production costs per unit of goods as production volume increases). Goods produced by subjects of a natural monopoly cannot be replaced in consumption by other goods, and therefore demand in a given product market is less dependent on changes in the price of this product than demand for goods of other types. World experience shows that such production conditions are typical for so-called public utility enterprises, which, in particular, include electricity, water and gas supply enterprises, telephone services, etc. According to the Federal Law of the Russian Federation “On Natural Monopolies” dated August 17, 1995, these include:

– transportation of oil and petroleum products through main pipelines;

– services for the transmission of electrical and thermal energy;

- rail transportation;

– services of transport terminals, ports, airports;

– public electric and postal communication services.

A natural monopoly, like any monopoly, carries with it the possibility of abuse of monopoly power by its subjects. These abuses are possible when setting prices and tariffs for goods and services of industries - natural monopolists, when determining production volumes, distributing products between individual consumers, etc. To prevent abuse, the state must regulate the activities of natural monopolies, developing a special legal regime such regulation.

State regulation of natural monopolies is based on maintaining a balance of interests of consumers and subjects of natural monopolies.

There is an idea that price increases for the products of natural monopolies can be avoided if they are reformed. The essence of the reforms seems to be similar in principle in all industries: separation of the competitive sphere and reduction of costs and prices through competition. Analysis shows that this kind of opportunity exists only in the electric power industry.

In the chronology of Russian reforms of the last decade in the field of natural monopolies, two successive periods can be distinguished: the first half of the 90s, when infrastructure subsystems (which are mainly associated with the problems of natural monopoly industry structures, natural monopolies) were mainly reformed “on general principles,” and the second half of the decade, when special measures regarding natural monopolies began to be developed and implemented.

In general terms, we can name the following important factors that determine the course of Russian reforms in natural monopoly industry structures:

– the manifestation of a number of retrospective trends that have developed outside the period under review, including negative ones, which determine long-term and sustainable imbalances in the development of production infrastructure;

– the presence of a general macroeconomic background of Russian reforms, the implementation of which determined the measures to reform the infrastructure sectors;

– the genesis of Russian monopoly (any, natural and “unnatural”) – as administrative, initiated “from above”, and not as one that emerged in the process of developing market relations, which introduces additional difficulties into the reform processes;

– the “lagging” nature of reforms in infrastructure sectors in the overall package of measures to reform sectors of the national economy, which in some cases slows down the progressive progress of socio-economic transformations in the country;

– the backbone nature of the country’s transport and energy networks, features of the formation of their structure and topology, affecting the possibility of developing competitive environments (both within the framework of intra-industry and inter-industry competition);

– a variety of forms and methods (not always completely legitimate) of carrying out, through line ministries, a set of industry-specific measures aimed at the survival of the industry in new economic conditions;

– features of measures for state regulation of infrastructure industries in the sphere of their natural monopoly, aimed at overcoming the merging of the functions of public administration and management within a single entity and aimed at ensuring the efficiency of the activities of natural monopoly industry structures in the interests of society.

Along with natural monopolies, other areas of activity, called state monopolies, can also be excluded from the sphere of market competition. Maintaining competition in these industries is inappropriate not only because of its economic inefficiency, but also because of the special role of these industries in shaping the general conditions for the economic and social development of the country, ensuring national security, as well as the special social significance of the goods and services produced. As a rule, the subjects of the state monopoly of Russia are state unitary enterprises that have licenses to carry out certain types activities. Types of state monopoly: monetary emission activities carried out by the Central Bank of the country, some types of foreign economic activity (export and import of certain goods), often the production and sale of alcoholic products, etc. The state monopoly regime is exceptional, its types and boundaries are determined by special laws.

Thus, the state's antimonopoly policy does not mean the total destruction of monopoly. It involves the preservation of certain types of monopolies, ensuring their state regulation. The essence and meaning of any antimonopoly policy is to use the benefits of a large-scale economy and neutralize its possible negative consequences associated with weakening competition. It is the combination of these two approaches that constitutes the most intractable legal and economic problem, which varies depending on the situation.

3.1. State regulation system

natural monopolies in Russia

Commodity markets, where there is only one economic entity supplying goods (services), in accordance with the legislation of the Russian Federation, are classified as natural monopolies and are subject to state regulation. It is necessary to protect the interests of consumers of goods and services of natural monopolies, as well as to increase economic efficiency their activities. Currently, in our country there is a tendency to strengthen the regulatory function of the state in this area. This gave rise to a number of economic and legal problems.

World practice knows several approaches to solving them: 1) use of the institution of state ownership in relevant areas; 2) privatization; 3) government regulation. Federal Law No. 147-FZ of August 17, 1995 “On Natural Monopolies” is based on the concept of state regulation in the interests of society. Based on the fundamental provisions of this economic theory, based on the need to provide consumers with quality products in sufficient volume and affordable prices, The Law on Natural Monopolies provides an exhaustive list of methods of influence:

a) price regulation;

b) determination by the consumer of those subject to mandatory maintenance, and (or) establishment of a minimum level of their provision.

These methods (each individually or both at the same time) are not applied automatically, but depending on the specific situation on the product market and based on decisions of government regulatory bodies.

What are the reasons for the development of the Law of the Russian Federation “On Natural Monopolies”?

An analysis of cases that were considered in connection with violations of antimonopoly legislation showed that 30-40, or even all 50 percent of cases in different periods and in different regions accounted for precisely those entities whose divisions are now classified as natural monopolies: transport, communications, energy.

These violations boiled down to two: abuse of their monopoly position in the form of setting high prices for their products or services and violations related to the conclusion and execution of contracts. There are many other options for violating antimonopoly laws, but a significant part of them occurred in the above-mentioned industries.

Since 1992, when prices were liberalized, prices in this sector began to rise faster than in others. The government became concerned with the problem of regulating these sectors and began to introduce measures such as limiting the level of profitability, establishing certain ceiling prices, that is, government regulation measures. But in the form in which this regulation was carried out, as practice has shown, it was ineffective.

What does it mean to “set a maximum level of profitability”, what does it mean “an enterprise cannot receive more than 25% profit from costs”? It's simple: in order to make more profit, a company will increase costs. That’s what everyone did, that is, they included in the cost of production everything that the current legislation allowed and did not allow, and added 25% to this amount of costs.

This was the reason why the Antimonopoly Committee developed the draft Federal Law “On Natural Monopolies”. It was quite difficult for the Government and the State Duma. The interests of those industries collided, which, in accordance with this Law, should be controlled by the state itself. And yet, as a result of complex preparatory work In 1995, the Federal Law “On Natural Monopolies” was adopted.

Federal Law defines a monopoly as a state of a commodity market in which satisfying demand in this market is more effective in the absence of competition. That is, these are those areas where the state itself has recognized that competition cannot be the basis for the development of these sectors due to the technological features of production. And second: inter-industry competition cannot exist in an area where there are no substitutes and demand is inelastic. For example, an enterprise needs electricity; it cannot replace it with transport services or food products. You can only get electricity from a natural monopolist.

The sphere of natural monopolies includes a fairly narrow list of activities. Here you need to avoid such mistakes as the statement: Gazprom is a natural monopoly. The only natural monopoly is the transportation of gas through pipelines. Gas production, wholesale and retail sales are not a natural monopoly. It is not the oil complex that is a natural monopoly, but only the transportation of oil and petroleum products through pipelines.

Bodies have been created to control monopolies. This is, in particular, the Federal Energy Commission. Everything related to the transportation of oil and gas is assigned to it. Federal services in the field of communications and transport.

Methods for regulating natural monopolies are established by law. For example, pricing. Article 6 of the Law states that for this type of activity a fixed price or a maximum price level can be established. Now different sectors do this differently. There is a maximum level for electricity; in other industries they set fairly strict tariffs.

In accordance with the Law, these norms can be applied to those organizations that are included in the registers of natural monopolies.

That is, each of the bodies of natural monopolies maintains a register, includes in it those organizations that are truly natural monopolies in accordance with the definition given in the Law, and it is to them that it has the right to apply control and regulatory measures. The regulations on the register are approved by the Government, and the registers themselves are maintained by these bodies.

Some issues of natural monopolies have not yet been resolved. For example, it is very difficult to separate the competitive sector from the monopolistic one. Let’s take the same RAO Gazprom. There is a large competitive sector there - gas production, sales, repairs, maintenance, restoration of wells, production of certain types of equipment for gas production, transportation and sale. But within this group there is a type of activity called gas transportation through a gas pipeline, and this is a natural monopoly.

There have been many speeches in the media about how to deal with Gazprom. One side believed that everything should be left as it is, that he could handle everything himself, the other said that it was necessary to divide him organizationally, create several legal entities, including an independent company that would transport gas, and this company should be controlled by side of the state. But the truth already lies somewhere in the middle. And this is confirmed by the decrees of the President and the decisions of the Government that have now been adopted to regulate natural monopolies. This is Presidential Decree No. 426 of April 28, 1997 “On the main provisions of structural reform in the areas of natural monopolies.” It represents a program of measures to reform natural monopolies until the year 2000. It clearly describes the sectors: electricity, gas industry, railway transport and communications.

Certain industries were not included in this Decree. For example, such a monopoly activity as oil transportation; nothing is said about airports. Oil transportation is organizationally separated from oil production and its sales, and therefore it is much more convenient to control this area than in the electric power or gas industries.

After the Presidential Decree was issued, on August 7, 1997, the Government of the Russian Federation adopted Resolution No. 987 “On approval of a program of measures for structural restructuring, privatization and strengthening control in the areas of natural monopolies.” It approved a program of measures for structural restructuring and specified the provisions contained in the Presidential Decree.

Second, very important problem. Each of the spheres of natural monopolies has a network nature, that is, a certain object that someone from the outside uses. When transporting gas, a gas production organization pumps its gas into a gas pipeline so that someone can receive it several thousand kilometers away. It's the same in the electric power industry. In communications, the situation is exactly the same - there are those who upload information into the communication channel, and those who receive this information. Oil and railroads are the same. Therefore, the so-called non-discriminatory access to the network is a very important issue in these sectors. We need to make sure that signalmen, gas transport workers and railway workers do not say: “this client is ours, we serve him first, and you are a stranger, stand in line and wait until we get our hands on you.” This is the most important task. How is it being resolved now? If we take the electric power industry, it is being solved by the formation of a federal wholesale electricity market. Ideally, it is very good when there is a single market due to flows within a single network.

In the electric power industry, FOREN is the Federal Wholesale Electricity Market. Electricity producers supply energy there at a certain price, which is determined in this market. Electricity consumers buy it. The delivery price is based on the normal stock exchange quote. If we take the transportation of oil and gas, then the situation there is resolved by creating social commissions.

On September 30, 1997, the Government of the Russian Federation adopted Resolution No. 1269 “On the interdepartmental commission to consider issues related to the access of independent organizations to the gas transportation system of RAO Gazprom” (such a commission has been working in the oil industry for a long time). The commission includes representatives of the Ministry of Fuel and Energy of the Russian Federation, the Federal Energy Commission, the Ministry of Economy of the Russian Federation and the Antimonopoly Committee. Its tasks are to consider on an interdepartmental basis those controversial issues that arise among independent gas producers.

Gas is produced not only by Gazprom, and it is necessary to ensure that any gas producer has the opportunity to use the networks owned by Gazprom on a non-discriminatory basis, at clearly established and controlled tariffs, under a unified access procedure, because the network has a certain resource , you may have to stand in line. But so that the manufacturer knows when his turn comes, why he was put in this place, and not four places ahead. So that he finds out why he was refused: because he paid little or because his gas is not suitable for transportation through this gas pipeline due to its quality - it is not purified, there are many impurities in it. This is why such a commission is being created.

Any organization can appeal to this commission, and it makes a decision. The participation of the Federal Energy Commission in this interdepartmental commission suggests that all the sanctions that are provided for by the law on natural monopolies can be applied to Gazprom: it can be fined or punished in other ways.

The third question is what level of concentration of production and capital is acceptable. This is an old debate between proponents of government intervention and proponents of free markets. In different historical conditions, in different industries, with different technological structures, with different conditions on the world market, the answers could be exactly the opposite.

The position of the Antimonopoly Committee is that concentration in itself cannot be considered harmful or beneficial. It exists objectively. If the market is formed in such a way that there is a large company in it, then it should be so. If only under these conditions it is possible to ensure normal economic development, normal technical and scientific progress and normal international competition, then concentration is needed.

Unfortunately, one very important area remains outside of market regulation. This is the sphere of natural monopolies associated with housing and communal services: water supply, gas supply, heat supply, electricity supply, sewerage, some communication services, etc.

But the Constitution places them within the competence of the bodies of the Federation or local self-government.

Conclusion

Having studied the chosen topic, it should be noted that the main negative side of economic monopolization is the excessive power of monopolistic firms. Market power is the ability to influence the price of a product.

In any monopoly structure, excess profits are made, and consumers are forced to pay too much for their goods and services. As a result, the efficiency of the entire economic system sharply decreases.

Monopoly is bad because it makes it difficult or almost impossible for new companies to enter the market, which destroys the very institution of entrepreneurship. The insufficient influx of new companies into the market prevents the development of healthy competition - as a result, companies that have a foothold in the market have no incentive to increase efficiency and productivity, which in many industries leads to the creation of oligopolistic structures.

Negative aspects in the economy force modern states to develop antitrust legislation and pursue antitrust policies.

The development of antimonopoly legislation and the mechanism for its implementation is based on the conclusion that society suffers economic and other losses from the displacement of market competition by a monopoly. Consequently, society will receive economic benefits by preventing the development of a monopoly or stopping its activities where it already exists.

The experience of Western countries in antimonopoly legislation is large and varied. The emergence of such legislation is due to historical reasons. Due to the peculiarities of economic development various countries have developed different systems antimonopoly regulation. On a global scale, there are two approaches: American and European.

In Russia at this stage, the problem of monopolization ceases to be purely economic, and is increasingly becoming political. However, it is well known that economics, first of all, should not have political affiliation. And only then can the state fully replace the decades-old monopolies with a free and self-organizing market.

The ultimate goal is that only those enterprises that will provide more high quality goods, relatively lower prices and rapid assortment changes.

References

1. K. Totyev. “Regulation of the activities of natural monopolies”

A. Tsyganov. “Monopolies in a Free Market.”

2. N.I. Belousova, E.N. Vasilyeva, V.N. Livshits “Reforming natural monopolies in Russia”

IVF 1999 No. 4

3. E. Yasin “Prospects for the Russian economy... reforming natural monopolies”

Society and Economy 2002 No. 2

4. I.I. Agatova “History of economic doctrines”

Moscow 2001 “Lawyer”

5. hole ed. I.I. Stolyarov “State regulation of a market economy”

Moscow State University named after M.V. Lomnonosova. Moscow 2001 “Business”

6. L.I. Abalkin. “General economic foundations of market management”

Moscow 2002 “The Path of Russia”

7. A.S. Pelikh “Fundamentals of Entrepreneurship”

Rostov-on-Don 2001 “Phoenix”

8. N.M. Korshunov “Business Law”. Textbook.

Moscow 2001 “Law and Law”

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Moscow 1997 “Finance and Statistics”

10. A. Reznikovich “The monopolistic fatherland is in danger.”

Kommersant Money No. 13 1999

11. Brief economic dictionary.

Oligopoly is a market dominated by a few large firms, i.e. A few sellers compete with many buyers, offering both standardized (similar) and differentiated products.

Oligopoly characterizes an economic situation in which a small number of producers-sellers (from three to seven firms) remain on the market. The largest of the remaining ones get the opportunity to influence the market price.

The main characteristics of an oligopoly are the following:

1) there are several participating sellers in the market (from three to seven);

2) the share of each participant is significant, and they exert mutual influence;

3) products are both differentiated and identical (identical, similar);

4) a conspiracy may occur;

5) the conditions for new participants entering and exiting the market are limited;

6) this market is subject to greater control and influence from government authorities.

Characteristic feature An oligopolistic market is the interconnection of firms - any of the oligopolists is significantly influenced by the behavior of other firms and is forced to take this dependence into account.

In an oligopoly, both price and non-price competition are possible. But price competition methods are usually less effective. There is close interdependence between enterprises. If one of the competitors has reduced prices, others will be forced to respond adequately, otherwise there will be too great a loss of customers and profits. By making a counter move, they will simultaneously nullify the efforts of the price leader. Therefore, price methods here can bring a short-term effect.

Since products are produced by large enterprises, production costs are reduced due to economies of scale. Price changes by one of the competitors that dominates production or sales determine the pricing policy in the industry. Others “submit” to her. At the same time, price competition weakens. This situation is called leadership in prices, characteristic of an oligopoly.

In an oligopoly, non-price methods of competition - from advertising to economic espionage - turn out to be more effective, and therefore are used more often.

Entry into an oligopolistic market is limited. Significant capital investment is needed to create an enterprise that can compete with the firms that already control the market.

In oligopolistic competition, a firm is able to control two main parameters of its activities - price and volume of production or provision of services; it is beneficial for it to produce less and inflate prices to a greater extent.

The highest level of imperfect competition is pure monopoly when an entire industry is represented by one company. Those. the concepts of “firm” and “industry” are quantitatively the same. On a national scale, such a situation is extremely rare, but on the scale of a small city or region, district, such a situation is quite real and even typical: a city can have one railway, one airport, one bank, one power plant, etc.

Pure monopoly(from the Greek monos - one, polio - I sell) is a market in which one seller confronts many buyers. Monopoly assumes that one company is the only manufacturer of any product that has no analogues. Therefore, buyers have no choice and are forced to purchase these products from a monopolist company.

The concept of “monopoly” has a double meaning: Firstly, a monopoly is understood as a large enterprise that occupies a leading position in a certain industry; Secondly, a monopoly refers to the position of a firm in a market that allows it to dominate it.

The purpose of a monopoly– obtaining excess profits through control over price and production volume in a monopolized market by creating the most favorable conditions.

Main features of a pure monopoly:

a) the sole seller is the manufacturer;

b) there is no product differentiation, therefore, there is no substitute goods;

c) the seller exercises almost complete control over prices;

d) very difficult conditions for new enterprises to enter the industry - entry is blocked by finance, technological, resource, and legal conditions;

e) the process of leaving the industry is also difficult;

f) the presence of economic and legal barriers to entry into and exit from the industry.

Distinguish two types of monopolies according to the method of formation (emergence) - natural and artificial.

1. Natural monopoly – represented in the form of private owners and organizations that include rare and freely non-reproducible economic resources (rare metals, special land plots, etc.).

The reasons for the emergence of natural monopolies are:

Limited, non-reproducible and variable quality natural resources(differentiation of their quality);

The absence of close substitutes (substitutes) despite the uniqueness of the product being manufactured.

A natural monopoly is formed on the basis of the technological needs of the development of productive forces with high level concentration of production.

2. Artificial monopolies - These are associations created for the sake of obtaining monopolistic benefits. Artificial monopolies appear in the form of various monopolistic associations. An artificial monopoly arises from collusion or suppression of competitors.

Also distinguished types of monopoly in terms of the possibility of penetration into the industry (the possibility of the emergence of new rivals) due to the presence of protection from the state (government bodies) :

1. Open monopoly - a monopoly in which one of the firms (at least for some time) becomes the sole supplier of a product, but does not have special protection from competition. Companies that enter the market with new products for the first time often find themselves in situations of open monopoly. Options for the optimal behavior of a monopolistic firm in this case can vary from a policy of maximizing short-term profits to limiting pricing.

2. Closed monopoly - a monopoly protected by legal norms that limit competition: patents, licenses, copyrights, etc. In practice, only a few monopolies are truly completely closed. In a real economy, there is always the possibility of the emergence of substitute goods, as well as the possibility of eliminating legal barriers that ensure the appropriation of net economic profit. As a result, a closed monopoly may find itself in a situation of break-even production in the long-term time interval. The firm earns enough income to recover all costs, including the opportunity cost of capital, but does not pocket economic profit.

Horizontal and vertical integration, diversification - as ways to form monopolies. Forms and characteristics of monopoly associations. Monopoly power: essence and forms of manifestation. The essence of monopoly price

Monopoly means power over the market, especially over price. If a pure monopoly operates in a society, then we can talk about its absolute power in a given industry. Indicators of the share of firms' turnover on the market are widely used: share of 4 firms, share of 8 firms, share of 10 firms, etc. More accurate indicators are those that take into account both the number of firms in the industry and the market share of each of them. The general direction of increasing market power in different markets is reflected in Figure 7.2.

Monopoly power– the degree of control exercised by monopolists in their markets.

To measure the “strength” of monopoly power, it is also used index English economist Abbey P. Lerner (1905 – 1982):

where M is the index of monopoly power;

Р m – monopoly price;

MC – marginal costs (optimal)

Economic meaning of the Lerner index is as follows: the greater the gap between the monopoly price and marginal cost, the greater the strength of monopoly power.

Under perfect competition, prices (P) are equal to marginal costs (MC). Consequently, under conditions of perfect competition, the strength of monopoly power is zero, because P – MC = 0. Under conditions of imperfect competition, the monopoly price (P m) is higher than marginal costs (MC). Consequently, the interval between 0 and 1 precisely characterizes the strength of monopoly power. The higher this indicator, the higher the monopoly power of the company.

Marginal costs (MC) in Russia are not taken into account at all in the accounting system.

If the numerator and denominator of this formula are multiplied by the quantity of goods sold (Q), then the mass of gross profit will be obtained in the numerator, and the volume of sales, gross (total) income will be obtained in the denominator. The relationship between them will answer the question: what is the share of profit in the total volume of products sold. And then the formula of A.P. Lerner will take the form:

Conclusion: high profits are a sign of the strength of monopoly power.

A monopoly price is established in the market, which exceeds marginal costs, i.e. P m > MS (abroad), P m > ATS (in Russia). The power of an absolute monopoly leads to an increase in the profits of the monopoly itself and at the same time to a loss of income for consumers. Monopoly prices are always higher than competitive prices.

Monopoly price is a special type of market price, established under the influence of not only supply and demand, but also the dominance of monopolists in the market for a given product. Such a price is usually a consequence of an agreement between monopolists who dominate the market for a given product, and is set based on the calculation of obtaining the greatest possible profit from the sale of goods available to sellers. The monopoly price is most often much higher than the price set for competitive market. (Raizberg B.A., Lozovsky L.Sh., Starodubtseva E.B..Modern economic dictionary. - 2nd ed., rev. M.: INFRA-M. 479 pp..1999.)

Production concentration – main reason emergence of monopolies. The increase in the scale of production in the process of concentration and centralization is carried out in the following directions (Fig. 7.3):

The process of emergence of monopolistic unions is due to the following factors, presented in Figure 7.4.

Figure 7.4 – The process of creating monopolies

As a result of the concentration of production, different organizational forms of monopoly - monopoly associations (oligopolistic associations) :

1. Cartel – the simplest form of association; This is an agreement on production quotas and division of sales markets. The objects of the agreement may be: pricing, spheres of influence, sales conditions, use of patents. Cartels usually operate within the same industry and are subject to antitrust laws. Cartel participants retain legal and economic independence and carry out their activities in accordance with the cartel agreement (agreement). Agreement on prices, sales market, production volumes, exchange of patents, etc.

2. Syndicates – an organizational form of association in which the participants who join it lose commercial marketing independence and retain legal and production freedom of action. In a syndicate, product sales and order distribution are carried out centrally. These are associations for the purpose of organizing joint sales of products. They were widespread in pre-revolutionary Russia. International syndicates arose, for example, the De Beers diamond syndicate concentrated in its hands the sale of almost all rough diamonds mined in the world. Russia, like many countries in the world, is forced to cooperate with this syndicate.

3. Trust - this is a form of association in which the enterprises included in it lose both production and commercial independence. This is an association based on joint ownership and common management of production and sales of goods. The trust is managed from a “single center”. The trust's profits are distributed according to the business participation of individual enterprises.

4. Concern – an organizational form of unification of an enterprise from various industries under a single management and financial control. Usually part of the concern, in addition to production, transport and trading enterprises, include banks or some other financial institutions– insurance, pension funds, credit institutions, etc. The participants of the concern remain formally independent, but their activities are controlled and managed from a single center of the company. This structure makes it possible to increase the competitiveness of the company through internal financing, sales of products of the concern's divisions at internal tariff prices, transfer of know-how, etc.

Initially, concerns were common in the USA and Japan; currently, this organizational form has become predominant among large firms in various countries.

5. Pool - an association that has become widespread in the field of using projects. Pool participants seek mutually beneficial agreements on the form of transfer of patents and licenses. Profits are distributed in accordance with the quota determined upon joining the pool.

6. Holding - a joint stock company that owns a controlling stake in legally independent enterprises to exercise control over their operations. A holding is a parent company, a company created by large monopolies to manage subsidiaries through a participation system. Having “absorbed” a controlling stake in dozens and hundreds of enterprises, the holding directs their development, and growing income allows large holdings to turn to their own entrepreneurial activities. Legally, there are joint stock companies, LLCs, and sole proprietorships. A holding company (or “holding company”) is an organization whose main function is to manage the activities of several joint-stock companies through the ownership of their controlling stake.

7. Conglomerates – associations based on the penetration of large corporations into industries that do not have production and technological connections with the traditional areas of activity of the parent company.

8. Legal forms of pure monopoly are also patents, copyrights, trademarks. Patent is a document issued by the government to a person granting the exclusive right to make, use or sell goods. It gives the inventor of a new product or technology the exclusive right to control its production for a specified period of time. The state provides protection for the inventor's ideas. Copyright give authors of works exclusive rights to sell or reproduce their works. Trademarks - this is a symbol used by enterprises, by registering which the state makes it illegal for others to use it.

Antimonopoly regulation of the economy: essence, goals and methods. Antimonopoly legislation and its role in the economic system. Antimonopoly policy in the Russian Federation. Functions of the Federal Antimonopoly Service of the Russian Federation.

The state uses economic and administrative measures in the fight against monopolies.

Administrative measures provide for the introduction of direct restrictions.

Economic measures to maintain competition and combat monopoly include:

ü encouraging the creation of substitute goods;

ü support for new firms, medium and small businesses;

ü attraction foreign investment, establishment of joint ventures, free trade zones;

ü financing of measures to expand the production of scarce goods in order to eliminate the dominant position of individual economic entities.

Antimonopoly regulation is a system of regulatory legal acts aimed at overcoming negative aspects monopolies associated with power, allowing them to suppress aggregate competition and control prices.

Methods of antimonopoly regulation:

Monopolization of the market is limited;

Constant state monitoring;

Setting monopolistic prices is prohibited;

Preservation and maintenance of competition.

Antimonopoly legislation– legislatively enshrined fundamental rules of activity in the market of economic participants, government bodies and management.

Objectives of antimonopoly legislation:

Providing favorable conditions and incentives for the development of perfect competition in the national economy,

Removal of all obstacles to its activation on a legal basis, which makes it possible to exclude monopolistic actions of central authorities and management, the dictates of participants in economic turnover, and also to determine the legal regime for regulating liability for monopolistic actions and for violation of the rules of fair competition.

Since the activities of monopolies are antisocial in nature, protecting free competition and limiting the activities of monopolies is one of essential functions states.

At the end of 1991, Russia adopted the “Law on Competition and Restriction of Monopolistic Activities in Commodity (Markets)”, which defines the organizational and legal framework for preventing, limiting and intersecting monopolistic activities and unfair competition and is aimed at ensuring conditions for the creation and effective functioning of commodity markets. markets.

Came into force on October 26, 2006 the federal law"On the protection of competition." This law combined two previously existing laws - the Federal Law “On the Protection of Competition in the Financial Services Market” and the RSFSR Law “On Competition and Restriction of Monopolistic Activities in Commodity Markets”. At the same time, the Federal Law “On the Protection of Competition” not only formally includes the provisions of two laws, but also introduced many fundamentally new institutions for Russian antimonopoly legislation, and conceptually changed the approaches to certain key concepts, procedural and procedural instruments that were in force earlier.

In order to implement state policy to limit monopolistic activities, the State Committee on Antimonopoly Policy (Antimonopoly Committee) was created, later transformed into the Federal Antimonopoly Service (FAS).

FAS conducts public policy on developing commodity markets and competition, limiting monopolistic activities and suppressing unfair competition.

Antimonopoly policy is a set of government measures (relevant legislation, taxation system, denationalization, denationalization and privatization of property, encouraging the creation of small enterprises, etc.) aimed against the mobilization of production and the development of competition among commodity producers.

By decision of the FAS, the share of an economic entity may be limited to 35% of sales volume in the relevant market.

The main directions of antimonopoly policy in Russia:

ü control over compliance with antimonopoly requirements during the creation, reorganization and liquidation of business entities;

ü control over large sales and purchases of shares that can lead to a dominant position of economic entities (the position of an economic entity whose market share of a certain product does not exceed 35% cannot be recognized as dominant);

ü providing preferential loans, as well as reducing taxes or exempting from them business entities entering this product market for the first time;

ü financing of measures to expand the production of scarce goods in order to eliminate the dominant position of individual economic entities;

ü attracting foreign investment, establishing joint ventures, creating and developing free economic zones.

Public regulation of the activities of natural monopolies can be carried out through the use of various forms.

In countries with mixed economies, one can distinguish four main forms of government regulation of the economy, which also carry out antimonopoly policy (Fig. 7.5).

Figure 7.5 - Forms of state regulation of the economy

In modern conditions, the main function of the state becomes the organization of economic, legal and socio-political space for a market economy, the creation of equal conditions for all forms of entrepreneurship. The main attention is paid to the qualitative parameters of economic development: improving the quality of life, protecting environment and etc.

State regulation of a market economy pursues three goals:

o creation of legal, financial and social prerequisites for the effective functioning of a market economy;

o ensuring social protection of population groups whose situation in market economy becomes the most vulnerable;

o minimization negative consequences market relations.

To achieve these goals, the modern state has powerful regulatory means of influencing the market economy.

Additional questions for seminar lesson on topic 7:

1. What are the advantages and disadvantages of each type of competition: intra-industry, inter-industry, price, non-price, perfect, monopolistic, oligopoly, monopoly.

2. What is the essence of the concepts “oligopsony” and “monopsony”, as well as how these phenomena are characterized.

3. What are the functions of the Federal Antimonopoly Service (FAS).

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