Definition of monopolization and its impact on the economy. What is a monopoly? What is monopolization of power
Introduction
This course work examines the topic “Patterns of monopolization of the economy. Antimonopoly policy". The relevance of this topic is that monopolists act according to certain rules and laws, as a result of which it is possible to deduce the pattern of development of monopolies and prevent the development of monopolization of markets.
Monopolists limit production and set higher prices due to their monopoly position in the market, thereby reducing the standard of living of the population, and antimonopoly legislation cannot always stop attempts to monopolize the market.
A perfectly competitive market has a beneficial effect on the country's economy. The price of goods is determined by market rules of supply and demand, while companies cannot influence the price, thereby accepting it as given.
The purpose of my work is to outline in as much detail as possible the essence and forms of such a phenomenon as monopolization, both negative and positive features, to show the monopolization of Russian markets using a real example, to characterize the antimonopoly policy of the Russian Federation, and also to identify the main problems of antimonopoly regulation in our country and justify your own opinion on this issue.
monopolization antitrust policy
Monopolization
The essence of monopolization, goals and mechanisms of functioning
To understand what monopolization of the economy is, let’s consider who monopolists are and what a monopoly is.
Monopoly (from the Greek monopolium - one sell or the only seller) means the exclusive right to carry out any activity (production, trade, fishing), owned by one person, group of persons, organization or state, allowing one to impose one’s own interests and receive monopoly profits .
Monopolists have lower costs and, selling their products at market prices, receive from such sales not the usual average profit, but excess profit. And their rate of profit is consistently higher than the average market rate of return. This fact reflects their real market dominance.
Monopoly as a type of market structure has the following features:
There is only one company on the market and many buyers of its products;
There are no products that can serve as competitors to those offered by this company;
Full control of the monopolist over the price of goods and sales volume;
The presence of certain barriers to entry of other companies into the market.
The essence of a monopoly is characterized by the following points:
1. Monopoly arises from dominance in production;
2. By dominating production, the monopoly dominates the market;
3. Thanks to monopoly prices, the monopoly receives monopoly high profits.
Monopolization is when a small number of producers control a large part of the market for a particular product, and therefore have the ability to exert some influence on the price of the product.
Certain forms and signs of monopolism are observed even in those economic systems where monopolies do not occupy a dominant position. Let's look at the signs of creating a monopoly. With the advent of new technical inventions, new industries arise, and there is a rapid development of production, mainly in light industry. Changes in the technological method of production lead to the concentration of production, along with which the process of concentration of capital developed intensively.
Concentration of production expresses the internally necessary, stable and essential connections between the development of productive forces and the process of concentration, as a result of which there is a growing concentration of factors of production (material and personal) in large enterprises. The action of this law manifests itself with varying degrees of intensity at all stages of the development of capitalism, the driving force of which is competitive struggle. In order to survive in this struggle and make greater profits, entrepreneurs are forced to introduce new technology and expand the scale of production. At the same time, from the mass of small and medium-sized enterprises, several larger ones are gradually emerging. Sooner or later, competitors face an alternative: either continue the exhausting struggle among themselves, or reach agreement on the scale of production, product prices, sales markets, etc. As a rule, they choose the second path, concluding open and unspoken agreements among themselves, which is one of the most characteristic features of a monopolized economy. Thus, the emergence of monopolistic enterprises is a natural result of the development of productive forces, the evolution of the market, and the operation of the laws of competition.
Monopolies arise not only as a result of the concentration of production and capital, but also on the basis of their centralization. Centralization of production is an increase in the scale of production as a result of the merger of several separate enterprises into one with the establishment of a single management. Centralization of capital is an increase in the size of capital due to the combination or merger of previously independent capitals. A typical example of such an association is joint stock companies. Today, in developed countries of the world, almost all large, the vast majority of medium-sized and even some small enterprises exist in the form of joint-stock companies. True, shares of small and medium-sized companies, as a rule, are sold not on the securities market, but on the over-the-counter market. Such companies are closed joint stock companies.
The functions of a monopoly are determined by their qualitative and quantitative characteristics, organizational forms, the nature of relations with outsider competitors, market conditions, the relationship between supply and demand, the needs and interests of sellers and buyers, the availability of resources and government economic policy. The functions of monopolies are influenced by the amount of capital, the scientific and technical potential of the company, the state of the market infrastructure, access to information, competition and public opinion.
The most important function of monopolization is regulation of one’s own business activity and strategy, choice of development priorities, control over resources and products that compete with one’s own.
To quantitatively characterize monopoly power, the following are used:
1) Lerner’s indicator of monopoly power L = (P-MC)/P, which shows the degree to which the price of a product exceeds the marginal cost of its production.0 2) index of monopoly power (M), which shows the degree to which prices exceed long-term average costs (LAC): M = (P-LAC)/P; 3) Herfindahl-Fishman index, which determines the degree of market concentration: H = P21 + P22 + ... + P2n, where H is the concentration indicator, Pn is the firm’s percentage share in the market or share in the industry supply. The maximum value of H = 10000. If H is less than 1000, then the market is considered unconcentrated. Such a market requires at least 10 companies, the share of the largest is 31%, the two largest - no more than 44%, three - 54%, four - no more than 63%. If H is 1800, then the industry is considered highly monopolized. Sources or factors of monopoly power: 1. The company's share in market supply; 2. The absence of analogues of goods produced by a company with monopoly power; 3. Elasticity of market demand. The lower the elasticity of demand for a firm's product, the greater the monopoly power of that firm in the market. And, well. monopolization f. Establishment of a monopoly. In this action there is monopolization, but there is no production. Butovsky 1847 2 86. Monopolization of capital. OZ 1877 11 2 17. We support the monopolization of the grain trade. Lenin 27 114. Russian platinum… Historical Dictionary of Gallicisms of the Russian Language Concentration Dictionary of Russian synonyms. monopolization noun, number of synonyms: 2 concentration (23) ... Dictionary of synonyms MONOPOLYZE, I ruin, I ruin; anna; owls and nesov., that. Do (do) what n. subject of monopoly (in 1 and 3 values). M. industry. M. foreign trade. Ozhegov's explanatory dictionary. S.I. Ozhegov, N.Yu. Shvedova. 1949 1992 … Ozhegov's Explanatory Dictionary And, plural no, w. (German: Monopolisation, French: monopolisation... Dictionary of foreign words of the Russian language monopolization- MONOPOLIZATION1, i, g The process of establishing a monopoly and eliminating competition. The process of monopolization is actively underway in the oil industry. MONOPOLIZATION2, and, g Actions aimed at establishing a monopoly of the exclusive right of the state... ... Explanatory dictionary of Russian nouns G. Establishment of a monopoly [monopoly I 1.], elimination of competition; assignment of an exclusive right to do something. Ephraim's explanatory dictionary. T. F. Efremova. 2000... Modern explanatory dictionary of the Russian language by Efremova Monopolization, monopolization, monopolization, monopolization, monopolization, monopolization, monopolization, monopolization, monopolization, monopolization, monopolization, monopolization, monopolization (Source: “Full accentuated paradigm... ... Forms of words monopolization- monopolization, and... Russian spelling dictionary monopolization- (1 g), R., D., Ave. monopolises… Spelling dictionary of the Russian language AND; and. to Monopolize and Monopolize. M. trade. M. production of buses... Encyclopedic Dictionary There are quite a large number of different processes in the economy that affect its development and course. One of them is monopolization. This phenomenon has both positive and negative features, and must be controlled and regulated in order to avoid significant negative consequences. So what is monopolization, what is its essence and what is its impact? To understand the question “what is monopolization”, it is necessary to understand that the market of perfect competition is characterized by the homogeneity of the goods offered, a large number of producers, freedom of trade and information. This situation is theoretically ideal and is taken as a model, but does not occur in reality. Its complete opposite is the establishment of a monopoly. That is, the market (or a separate area of it) is occupied by one or several large companies that set pricing policies, regulate production volumes, etc. This is the process of monopolization. As a rule, it covers one sector of the economy. For example, in the countries of the post-Soviet space there is a monopoly in the housing and communal services almost everywhere. Monopolization of the industry in this case is characterized by the fact that services for the provision of electricity to the population and enterprises are provided exclusively by one company, gas - by a second, water - by a third, etc. The consumer does not have the opportunity to choose a supplier, there is no price competition, etc. The problems of market monopolization directly follow from the definition of the concept itself. These include the following: What is monopolization in terms of its impact on the economy? It cannot be said that this process has an exclusively negative impact, since there are several arguments in its favor. For example: When there is monopolization, there is usually a net loss to society. This is expressed in the fact that producers can almost unlimitedly increase prices for goods and services, regardless of changes in costs, and the consumer is forced to purchase them under established conditions. Since the buyer's income does not increase, the volume of purchased products decreases, which means the level of productivity of the entire industry decreases. Despite the fact that the monopolist receives unreasonably high profits, society as a whole loses from this process. In addition, the consequences stem from the negative aspects listed above. What is monopolization from a practical point of view? In different countries and industries, the value by which the level of competition is determined differs significantly. Theoretically, it is believed that if a third of the industry is occupied by the products of one manufacturer, half by three companies (manufacturers or service providers), and five cover more than 60%, then there is a low level of competition. A market is recognized as monopolized if the total number of enterprises is no more than ten. The calculation usually uses the Harfindel-Hirschman index, based on the total number of firms and their shares in the industry in percentage terms. The task of determining the level of monopolization and the degree of competition usually falls on the state, since this process significantly affects the economy and development of not only an individual industry, but the entire country as a whole, and as a result, the standard of living of the population. The presence and level of monopolization in the country's economy is regulated at the legislative level. Economic measures used to maintain competition and prevent monopoly and its negative effects include: Administrative government measures include: The most complex and sophisticated control system is considered to be that implemented in the United States. However, in recent years, Russia has also come to grips with the issue of market monopolization, including the adoption of the Competition Law, and the creation of a special committee to work in this direction. Hello, dear readers of the blog site. Monopoly is an economic situation in the market when the entire industry controls the only one manufacturer (or seller). The production and trade of goods or the provision of services belongs to one firm, which is also called a monopoly or monopolist. The subject has no competitors, as a result the company has a certain power and can dictate terms to customers. The word “monopoly” originated in Ancient Greece and translated means “I sell one.” The definition of monopoly implies the existence of a business niche where one manufacturer dominates, which regulates the quantity of goods and their prices. Pure monopoly companies are very rare. This is due to the fact that for almost any product or service a substitute can be found. For example, the natural monopoly is the metro. If the subway infrastructure is divided between two or three competing firms, real chaos will begin. But when the metro services are no longer suitable for the population, people will be able to get to their destinations by buses, trams, cars, and trains. That is, the metro is a monopolist among underground, high-speed transport, but in the field of passenger transportation it is not such. The state of the economy in which one subject dominates, typical for housing and communal services, the public sector, and production of products that require careful control. When considering what a monopoly is, one cannot ignore another related concept - “oligopoly”. This condition is much more common in economics. Oligopoly market divided between several companies. With the collusion of the main players, the market’s characteristics approach a monopoly (for example, mobile operators). Classic - aircraft and shipbuilding, weapons production. Here it happens between two or three suppliers. The following forms of monopolies are distinguished: There are other classification options, for example, they are divided into two types by type of ownership: Or according to territorial based on 4 types: If we consider an artificial monopoly, when a number of enterprises (companies) unite, then they say about various forms of such mergers: People noticed the benefits of monopoly almost immediately with the advent of exchange and the emergence of market relations. In the absence of competition, product prices can be raised. Ancient Greek philosopher Aristotle believed in the creation of a monopoly and farming. In one of his works, as an example, the sage talks about a subject who received money “at interest.” To make a profit, an enterprising man bought up all the iron in the workshops, and then resold it at a premium to merchants who arrived from other places. The thinker also mentions attempts by the state to regulate the monopoly. The cunning seller was expelled from Sicily by the government. In European countries in the Middle Ages, monopolism developed in two directions - as a result of the creation of guilds and through the issuance of royal privileges: In the 19th century, as a result of the rapid development of production, competition between manufacturers intensified. Cost reductions have led to the consolidation of factories and plants. Remaining players united into various communities( , pools), which acted as monopolists. Monopolies in the history of Russia are a repetition of global trends. But most of the processes in our country took place late and were often brought from outside. Thus, in tsarist Russia, the production of alcoholic beverages was exclusively a state function. And the first industrial syndicate arose in St. Petersburg in 1886 with the participation of German partners. He united 6 companies producing nails and wire. Later, a sugar syndicate was born, then Prodamet, Produgol, Krovlya, Med, Prodvagon, etc. The desire to monopolize the market is normal for any business. It is inherent in the very nature of entrepreneurial activity, the main goal of which is to obtain maximum profit. Monopolies are created both naturally and artificially. Additional factors, contributing to the development of monopolism, can be: Lack of competition leads to negative consequences in society: Therefore, governments are trying limit the emergence of monopolies. Special government bodies monitor the level of competition in the market, control prices, and prevent small firms from becoming dependent on large players. Antitrust laws exist in most countries of the world. It protects the interests of consumers and promotes economic prosperity. Good luck to you! See you soon on the pages of the blog site You might be interested What is a syndicate What is competition - its functions, types (perfect, imperfect, monopolistic) and the law on the protection of competition What is stagnation in simple terms Oligopoly: what it is, its signs and properties What is a concern What is a cartel Conjuncture is a multifaceted term with a market focus What is a conglomerate Affiliates - who are they in simple words? What is a market - what are its functions in the economy and what types of markets are distinguished Marketing is the engine of trade Introduction Monopoly(Greek “monos” - one, “poleo” - sell) - the exclusive right of 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. The modern development of the Russian economy is associated with the formation of state-controlled market structures and the creation of conditions for industrial growth in the conditions of developing competition. Monopolization of production directly affects the process of distribution of the social product, and therefore the mechanism of state regulation of monopolism acquires special significance. Problems of analysis of management activities related to the peculiarities of market regulation at the level of regions of the Russian Federation are becoming relevant. Decision-making on state regulation of the development of monopoly and competition in the market is associated with the analysis of monopolization of production. In the process of structural restructuring of the economy, government authorities face problems of coordinating competitive activities in markets with different levels of monopoly influence. Sound conceptual approaches are required to the formation of markets with a low level of monopolization in medium and small production and an increased level in industries where the consolidation of enterprises is due to cost savings and technological uniqueness of production. In this regard, a mechanism for analyzing the monopolization of production becomes relevant, allowing one to determine the effectiveness of the development of monopoly and competition, taking into account the scale of production. 1. Monopolization of production in Russia In our country, until recently, the prevailing trend was towards consolidation and centralization of production, although the advantages of large-scale production over small-scale production can increase to certain limits, after which they are lost. Starting from the stage of industrialization, the development of the national economy proceeded through the creation of giant enterprises, to which the state provided the best business conditions. Small plants and factories were given a secondary role. States, departments and ministries that manage individual sectors of the national economy, giant industrial enterprises, due to natural economic conditions or due to the extraordinary concentration of production, have become monopolists with no competitors in the domestic market. For example: in the late 80s, the world's largest air transport company was Aeroflot of the USSR. There were 0.5 million people in it. The company served 3,600 cities and 1 million sq. km of airways. The monopolistic structure of the Russian economy, which in scientific literature is often referred to as “state monopoly,” was formed under the influence of the following main factors: 1. The presence of an administrative-command management system, which was manifested in directive management, in the centralized redistribution of a large share of income, in the appointment of economic managers “from above.” 2. Concentration and specialization of production. At the end of the 80s. About 85% of the main means of production were concentrated in the hands of the state. More than 90% of mechanical engineering products were produced by enterprises, each of which employed over 1,000 workers. An extremely high degree of concentration of production is still observed in almost all sectors of the Russian economy. The concentration of production is complemented by a narrow subject specialization of production, which is simply incompatible with competition (since the likelihood of the existence of several giant factories producing goods needed in small quantities is low). A typical example is the Soviet aviation industry, which is practically inoperable in market conditions, consisting of design bureaus and factories independent from each other, and capable of operating only under a certain general management system. In addition, after the collapse of the USSR, the OKB named after them remained in Ukraine. Antonov without large aircraft manufacturing plants, and in Uzbekistan - a plant without a design bureau. The dismantling of the totalitarian nationalization of the economy being carried out in the country presupposes the destruction of all types of absolute monopoly. This is achieved by eliminating the command-administrative system, disaggregating large enterprises, increasing the role of small and medium-sized enterprises, creating competitive industries, including collective enterprises and industrial farms, organizing consumer societies, and adopting various acts of antimonopoly legislation providing for the development of normal competition. The industrial system of both Asian and European countries has a monopoly, or rather oligopoly, structure for the most part. Moreover, as a rule, market competition in the classical sense of the word does not exist anywhere. The markets of the countries of the United Exporters of Raw Materials (OECD) are segmented into micro-industries for the production of specialized goods. The production of each such product is usually oligopolistic, less often - monopolistic. Competition occurs not within a given market sector, but between sectors, due to the mechanism of cross competition, which generates a degenerate demand curve in each sector. This puts limits on monopoly dictatorship. Further, this phenomenon is weakened by foreign competitors. Moreover, the conditions created for them in the market of a particular country are by no means equal. The classic example here is Japan. Monopolization of production, as a rule, turns out to be in the interests of the consumer, since the equilibrium price of the monopoly, which ensures its profit, is much lower than the price that would be formed on the free market, due to the increased costs of entry and exit of firms into the sector in the process of competition. The age-old maxims of neoconservatives that the monopoly price is higher than the market price “all other things being equal” are inadequate to reality simply because “other conditions” in a monopoly and competitive market cannot be equal. In a competitive environment, costs are higher, and therefore the “market equilibrium” price is higher. In addition to profitability for the consumer, monopolization today is dictated by the scale of production: factors of minimizing transaction costs, etc. The existing multi-sector, “cellular” market ensures monopolistic competition and protects consumers from the arbitrariness of monopolies. However, this self-regulation very often turns out to be insufficient and requires government regulation. Because of this, Western states began to introduce elements of state regulation into their economies already in the 1930s. To date, in France, Scandinavia, and partly in Germany, these elements have taken the form of state paternalism of large industry, albeit very limited. Asian states (Japan, Korea, Taiwan, etc.) initially built their industrial systems within the framework of state paternalism. The effectiveness of this path is quite obvious to an unbiased analyst. The Japanese industrial system seems to be the most acceptable for Russia. After adaptation, it can take the following forms: · The basic elements of the system are linear monopolies, financial and industrial groups, as a rule, joint-stock ownership. · Additional elements of the system - small and medium-sized enterprises of various forms of ownership (municipal and private). The closing elements of the system are small private firms that provide services and carry out risky, innovative projects, working on behalf of large corporations. This system is closed on the corresponding structures of the state, which have different names, but have common features. The regulatory structure is the Ministry of Antimonopoly Policy (MAP), Consumer Protection, which implements antimonopoly legislation and regulates monopoly prices, measures for demonopolization where this is possible. In the USA, such a system has a quasi-judicial nature - supervisory authorities consisting of representatives of consumers and producers establish a fair price level. The formation of financial-industrial groups (FIGs) in our country is expected to be able to influence the stabilization of production, strengthening the competitive nature of economic relations, accelerating scientific and technological development, and financial stabilization. However, despite the usefulness and necessity for our economy of both holdings and financial industrial groups, they belong to monopoly structures. And when creating them, it is necessary to establish their compliance with antimonopoly legislation, and in particular the State Program for the Demonopolization of the Economy and the Development of Competition in the Markets of the Russian Federation. In accordance with this program, the entire group of enterprises and organizations included in the financial industrial group is considered as a single economic entity. The process of demonopolizing the economy and developing competition in the markets of the Russian Federation involves taking into account the following general requirements: Focus on creating a competitive market, protecting the rights and interests of consumers; Comprehensive solution to the problems of demonopolization, privatization and structural restructuring of the economy; A differentiated approach to objects of demonopolization, taking into account social interests, industry (product) and regional characteristics; The interconnectedness of solving the problems of demonopolization and the development of competition at the federal, industry and regional levels; Taking into account the factors of integration of the Russian economy into the global economic system, the openness of commodity markets to international competition in combination with measures to protect domestic producers; Monitoring changes in market structure and compliance of the program and implementation mechanism for demonopolization and development of competition with its structure; Ensuring publicity of ongoing activities and their results. 2. Positive aspects of economic monopolization 2.1. Production efficiency. The attitude of society and the state towards various forms of imperfect competition is always ambivalent due to the contradictory role of monopolies in the country's economy. On the one hand, monopolies can limit output and set higher prices due to their monopoly position in the market, which causes irrational allocation of resources and increases income inequality. A monopoly, of course, reduces the standard of living of the population due to higher prices. Monopolistic firms do not always take full advantage of the opportunities to ensure scientific and technological progress. The fact is that monopolies do not have sufficient incentives to increase efficiency through scientific and technical progress, because no competition. On the other hand, there are very compelling arguments in favor of monopolies. The products of monopolistic companies are of high quality, which allowed them to gain a dominant position in the market (except, however, for “natural monopolies”, which do not always rightfully gain access to this or that activity in the market). Monopolization has the effect of increasing production efficiency: only a large firm in a protected market has sufficient funds to successfully conduct research and development. At the same time, the role of monopolies in ensuring scientific research and experimental development should not be exaggerated. Practice shows that many major discoveries in science and technology are carried out by relatively small, so-called venture (English venture - take a risk) companies. Large firms can emerge from this basis (a great example is Microsoft, which in 1981 had 100 employees in the US, now has 16,400 employees in 49 countries, a market value of about $40 billion and an annual turnover of $5 billion). In addition, large-scale production makes it possible to reduce costs and generally save resources. Thus, the increase in oil prices as a result of the actions of the OPEC countries had an extremely negative impact on costs in many sectors of American industry. Only the use of scientific research results by large companies made it possible to switch to fuel-saving technologies and reduce costs. We should also not forget that large monopolistic associations (especially inter-industry ones, such as a metallurgical plant, the instantly famous Stinol refrigerator plant, an assembly plant for consumer electronics) in the event of an economic crisis last the longest and begin to emerge from the crisis earlier than anyone else. thereby curbing the decline in production and unemployment. Given the dual nature of monopolistic associations, the governments of all countries with capitalist-oriented economies are trying to resist monopolism to some extent by supporting and encouraging competition. 2.2. Impact on competition. It may seem that monopoly and competition are completely incompatible with each other. After all, a monopoly can eliminate free competition, and competition undermines someone's dominance in the market. Monopoly is in a complex contradictory relationship with competition. The very fact that the production and sale of any product is captured by a monopolistic group of large entrepreneurs, who receive great benefits from it, causes intense rivalry - the desire of other businessmen to get the same gain. On the other hand, if an entrepreneur strives to defeat his rivals, then, having achieved his goal, he begins to dominate the market. Conclusion: monopoly breeds competition, and competition breeds monopoly. In modern conditions, large capitalist associations have not destroyed competition, they exist together with it, this intensifies rivalry. There are a significant number of enterprises that are not part of monopolistic associations and are engaged in a difficult struggle with them. In every country, monopolies are met among their competitors by foreign companies entering the domestic market. Competition (Latin “konkurro” - to collide) is rivalry between participants in a market economy for the best conditions for the production, purchase and sale of goods. Such a clash is inevitable and is generated by objective conditions: the complete economic isolation of each manufacturer, its complete dependence on market conditions, and confrontation with all other commodity owners in the struggle for consumer demand. The market struggle for survival and economic prosperity is the economic law of the commodity economy. 2.3. Price reduction. The high prices at which the bulk of products produced by monopolies are sold in the monopoly industry also allow non-monopolized enterprises to often sell their products at such favorable prices. As a result, rivalry between monopolies and competition between the latter and non-monopolized enterprises lead to a slight reduction in industry prices. 2.4. Development of small and medium-sized businesses. In the United States, small and medium-sized firms produce about half of the gross national product (GNP) and create more than half of the jobs. Their products are purchased by large monopolies who prefer not to take risks in mastering new science and technology. Thus, monopolies promote the development of small enterprises. 3. Negative factors of monopolization Impact on market relations. Without eliminating the monopoly in the sphere of production and circulation, there can be no talk of any market, since monopolism and the market are mutually exclusive. Under conditions of pure monopoly, all market measures taken are hypertrophied, and sometimes bring results that are completely opposite to those expected. Thus, in the recent past, price liberalization came down to a simple increase in prices, strengthening the position of monopolistic enterprises, which, even with a reduction in production volumes, solve their problems at the expense of end consumers. In a monopolized economy, there is no correct competition, self-regulation, and therefore no market environment. Monopolization slows down structural restructuring, since there is no motivation for work, accumulation, expansion, renewal, or technical reconstruction of production, which ultimately leads to the physical and moral aging of funds and their “eating away.” Monopoly slows down scientific and technological progress, leads to stagnation in all areas of society, and to complete defenselessness of the consumer. 4. Antimonopoly regulation Antimonopoly regulation is a set of economic, administrative and legislative measures carried out by the state and aimed at ensuring conditions for market competition and preventing excessive monopolization of the market, which threatens the normal functioning of the market mechanism. Antimonopoly regulation involves regulating the degree of concentration and monopolization of production, foreign economic activity, price and tax regulation, and influencing the strategies of enterprises. Monopoly power can pose a danger associated with unjustifiably inflated prices for monopoly products and excessive understatement of prices for raw materials for the monopolist firm. Most monopolies are characterized by a tendency toward bureaucratization and inefficiency (when actual costs for any volume of production are higher than average total costs). A monopolistic market is characterized by inefficiency in resource allocation. The influence of monopolies can increase income differentiation, which in turn has a negative impact on society and is fraught with social conflicts. Due to all of the above, in developed countries there is antimonopoly regulation of the economy. In Western countries, the state actively regulates the economic activities of monopolies and oligopolies. It seeks to prevent the undue influence of monopolies and oligopolies in the economy, as well as to reduce the negative impact on society. The basis for such regulation is antimonopoly (antitrust) legislation. Antitrust law is a complex and extensive network of laws, court decisions and legal norms. All these measures are aimed at regulating the actions of firms and corporations in the market of goods and services, in the capital market, cutting off those that are recognized as unfair, of poor quality in relation to the rights of producers and consumers, and also simply harmful to society. Antimonopoly legislation can be understood in the narrow and broad sense of the word. In the first case, it is aimed against pure monopolies and large oligopolies with excessive monopoly power, as well as at preventing “dishonest” actions that violate generally accepted norms of business communication. In a broad sense, antimonopoly legislation is directed against all forms of accumulation of monopoly power (including by small firms), and any forms of monopoly behavior. 4.1 First antitrust laws The first laws prohibiting monopoly agreements were adopted in Canada (1889) and the USA (1890) - the famous Sherman Act, which gained wide popularity as the “charter of economic freedom.” The law sounded very menacing. Any agreements or associations aimed at limiting freedom of fishing or monopolizing any sector of the economy were declared illegal. The creation of monopolies entailed a fine of up to $5 thousand (later it was increased to $50 thousand) and imprisonment for up to one year. The same law was passed in Austria and New Zealand. Sherman Act later supplemented (in 1914, 1939, 1950), it extended to new types of activities and new forms of associations and agreements. The Clayton Act (1914) prohibited agreements to limit the number of counterparties, the purchase or takeover of firms if this could destroy competition, the creation of holding companies and other agreements. Horizontal mergers (combinations of firms in the same industry) were prohibited. In 1914, the Federal Trade Commission was formed to combat “unfair” competitive practices and anticompetitive mergers. In Western Europe (Belgium - 1935; Netherlands - 1935; Denmark - 1937) there were attempts to legislatively control cartel agreements. Here, cartels were seen as a means of combating “excessive competition,” but laws were intended to prevent this form of monopoly from being abused. The Keller-Kefauver Act (1950) supplemented the Clayton Act with a ban on mergers by acquisition of assets. Not only horizontal mergers were prohibited, but also vertical ones (the merger of companies that were consecutive participants in the same production process). Thus, all these laws were aimed at ensuring a free market, fair competition, and established control over various types of agreements. However, few cases on charges of violating free competition, considered, for example, by American courts, resulted in the punishment of violators of the laws. Very often the courts were on the side of the monopolies. Even the Russian economist I. Yanzhul drew attention in his book about syndicates to the prosperity of associations that, according to the Sherman Act, were declared illegal three years after the adoption of this law. 4.2 Modern antimonopoly regulation Modern antimonopoly regulation by government agencies can be reduced to three groups of measures: First group of measures - administrative and legal impact in the form of: · prohibition of monopoly in any sector of the economy; · dissolution of existing monopolistic associations; · division of monopolies into a number of independent productions. Second group of measures - administrative and economic impact aimed at · persecution by the state of traders who engage in price discrimination (inflated prices not due to production costs); · prosecution of traders who falsify goods through the use of advertising; · prohibition of non-economic influence on counterparties through conspiracy with the aim of exerting a joint influence on changes in the market situation. Third group of measures - economic impact carried out by the state: · the use of different methods of tax policy that force the monopoly to set prices for products close to the conditions of free competition; · encouraging the release of substitute products. The variety of goods for personal and productive consumption reduces the demand for goods of monopoly production; · expansion of the market through the establishment of international economic relations and increased imports; dissemination of scientific and technological knowledge. American legislation is aimed at ensuring equal starting opportunities for entrepreneurship and slowing down the process of competition developing into a monopoly. As for the antimonopoly policy of the Russian state, the situation here is as follows. Russia is characterized by a high level of monopolization (state, departmental and industry). This is also manifested in the monopolistic behavior of the majority of enterprises, especially after the liberalization of prices in January 1992. An expression of this behavior is the desire to inflate prices while reducing production volumes and product quality, reluctance to carry out structural restructuring, the transition to the development of new equipment and new technology, etc. .d. The modern prosperity of various kinds of monopolies and the emergence of transnational corporations indicate that the formation of monopolies is a natural process, and this is explained by the fact that competition itself - an important element of the market mechanism - gives rise to them, because every competitor in the market dreams of becoming a monopolist. Conclusion The modern methodological basis for analyzing competition in commodity markets has a fairly narrow system of criteria for proving monopoly power. When forming a product group, competition between industries with similar technology is not taken into account. Methods for determining the geographical boundaries of the relevant market, which unites the markets of competing manufacturers (suppliers) of goods, require clarification. In the context of the formation of domestic markets, the development and justification of criteria for assessing the effectiveness of the market structure from the standpoint of the development of production (consumption) and competition becomes relevant. A clear definition of the types of emerging markets, realistic assessments of the state of development of the market environment, and a mechanism for active regulation of commodity markets are required. The problems of analyzing the monopolization of Russian production raise the need to study the experience accumulated in countries with developed market economies and study the possibilities of its practical application in domestic conditions of competitive development. Of particular importance are methods for analyzing the availability of consumption of goods when determining the geographical boundaries of the market, as well as assessing the effectiveness of the dimensional structure of production and consumption in the market. The problem of analyzing the monopolization of production is qualitatively new for our country and, as a result, is not sufficiently covered in the domestic economic literature. Foreign developments require serious reflection in relation to the Russian specifics of market development. REFERENCES 1. Babaeva L. Small businesses in Russia are threatened by... monopolism // Man and Labor. - 1993. - N 8. - P.101-104. 2. State antimonopoly policy: practical experience and tasks of improving legislation // Ros. econ. magazine. - 2000. - N 3. - P.28-33 3. Zhuravleva G.P. Economics: Textbook. M.: Yurist, 2001. 505 pp.; 4. State regulation of the economy: Textbook. manual / Under the general editorship of G.N. Vlasov and A.M. Zheltova. Nizhny Novgorod, 1998; 5. Electronic resourcesBooks
Definition of the concept
Negative facts
Positive aspects
Consequences
How to recognize?
State intervention
Examples of monopolies
Types and forms of monopolies
Monopoly in the history of social development
Reasons for monopoly
Antimonopoly legislation