Abstract

Abstract

This paper studies the prerequisites for the emergence of a firm’s market power using basic models of oligopoly. The significance of the study is related to identifying theoretical prerequisites that are essential for modifying the collective dominance institution, which can be considered a legal analogue of the economic concept of oligopoly. The objective of the paper is to identify the elements associated with the emergence of market power under the oligopoly model, allowing to shape theoretical basis for the collective dominance concept application. Multiple objectives have to be met before the said objective can be achieved: 1) highlighting the relevant signs of interaction between oligopolistic firms; 2) identifying limitations for the application of collective dominance concept in practice. The scientific novelty of the research lies in the formation of theoretical basis for the legal concept of collective dominance in Russia. The subject of the paper is the relationship between the concept of collective dominance in Russia and the basic oligopoly models. The study is part of a complex project which represents a RANEPA state research assignment and aims at exploring the effects of the collective dominance concept application in Russia. The study is based on industrial organization methods. The main findings of the study consist of the following: highlighting the aspects associated with market power emergence in oligopoly models (small number of participants, high entry costs, significant goods differentiation, high switching costs, full information for competitors and low availability of information for consumers); reflecting the prerequisites for the market power emergence under oligopoly in the Russian version of the collective dominance concept; stating the importance of a comprehensive application of the prerequisites under consideration through the analysis of oligopoly models. The conclusions of the research will used to design the roadmap for further reforms of the Russian collective dominance concept

Abstract

Studying the existence and type of barriers to entry is an integral part of competition analysis conducted by antitrust authorities in different countries. As a result, competition authorities in different countries have accumulated a lot of knowledge on this matter, which can be shared between regulators to define best practices and identify the weaknesses of the approaches used. This preprint compares the approaches to defining and measuring barriers to entry used by the antitrust authorities in Russia, USA, EU, Germany, Spain and Australia, which makes it possible to identify the shortcomings of the approach used by FAS of Russia and foreign antitrust regulators. Among the shortcomings of the studied approaches, the author highlights lack of consistency in identifying entry barriers, which is exceptionally noticeable in terms of barrier level analysis. Also, the cases reviewed by competition authorities lack quantitative assessment of entry barriers, which shows the gap between the ongoing academic research and law enforcement practice. The Federal Antimonopoly Service of Russia stands out in comparison to foreign competition authorities, because it often conducts only a formal definition of the entry barriers, limiting the description to a simple enumeration of market barriers or even completely skipping this part of the analysis. As a result, the Russian antitrust authority often draws unsubstantiated conclusions when assessing market entry barriers.

Abstract

The aim of the work is to test approaches to the analysis of the characteristics of local labor markets in Russia using big micro-level data. The first chapter deals with modern theoretical and empirical approaches to the study of local labor markets, the concept of market power and concentration of the labor market. The second chapter presents a model of the connection between the market power of employers and the wages of employees, and formulates the theoretical hypotheses of the study. The third chapter reveals approaches to the development of a database on local labor markets, highlights patterns that are characteristic of the Russian labor market. The fourth chapter provides an empirical analysis of the influence of the characteristics of Russian local labor markets on the level of wages of workers. The fifth chapter summarizes the results and formulates recommendations based on the results of the study.