The theory and practice of antimonopoly regulation

. Organizational and legal support for antitrust policyare two methods of antitrust regulation: direct and indirect. The direct method of

The theory and practice of antimonopoly regulation



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Federal Government Educative Budgetary Establishment of the Higher Professional Education

«Financial University under the Government of the Russia Federation»«International Finance»of Microeconomics








on Microeconomics

The theory and practice of antimonopoly regulation


by student of the group IFF 1-3 Erofeeva: PhD Victor Slobodyanik












Introduction1. Concept of antitrust regulation

.1 The necessity of antitrust regulation

.2 Antitrust regulation of monopolies

Chapter 2. Antitrust regulation in Russia

.1 The formation and methods of antitrust policy in Russia

.2 The system of state regulation and antitrust law





This work is devoted to one of the economic issues of modern times - antitrust regulation, its theory and practice. The main topic of the work is the concept of antimonopoly system, particularly considered in Russia, but also I would like to investigate monopolies and their features as the necessity of antitrust legislation is directly connected to the role of monopolies.

I would like to mark out the urgency of the problem, as the antitrust policy and antitrust regulation are 2 important areas of the government economy. Effects of market competition, free market inevitably generates a monopoly, which changes the conditions of competition, making the functioning mechanisms of the market system vulnerable. Due to the high concentration of economic resources monopoly creates opportunities to accelerate technological progress. However, these features are implemented in cases where this acceleration helps to extract monopoly profits. Joseph Schumpeter and other economists have argued that large firms have considerable power - a desirable effect in the economy, because they accelerate the technical changes, as firms have monopoly power, can spend their monopoly profits on research to protect or enhance its monopoly power. Doing research, they provide benefits both to themselves and society as a whole. But there is no convincing evidence that monopolies play a particularly important role in accelerating technical progress, because monopolies can delay the development of technical progress, if it threatens their profits. Antitrust policy is certainly a urgent topic today, as it is very important to the economy of the state. Well thought-out ways of regulating monopolies promote competition, market stabilization and improvement of the economy as a whole. The development of antitrust regulation is very important for the development of Russian economy, where the degree of monopolization of the market is higher than in states with historically established market economies. The Russian economy inherited from the Soviet economy a high level of concentration of production in many sectors of the economy. A natural monopoly has in Russia a great market power. Antitrust regulation combined with the support of the national organization of business and consumer protection is one of the essential conditions for successful economic and social development of Russia. The success of economic reforms largely depends on a weighted, balanced system of regulation by the state monopoly of processes and competitive relations. In Russia the process of establishing state control to prevent unfair competition actually started from scratch, as there is still more recently in the management of the economy command-administrative system is inherently exclude the presence of free competition in business. Therefore, at this stage it is crucial to create and improve the legal framework regarding the regulation of monopoly and competition processes, understanding the need for a population of Russian economic reforms in this area. The study of monopoly markets is important for economic decision-making on various issues.

The aim of this work is analyzing the necessity of antitrust regulation; understanding the reason why we need it and how it can simplify or, on the other hand, complicate the business area, its main concept; comparing the availability of advantages and disadvantages of such regulation. Another aim is to look on the recent situation in Russia concerning this topic as well: what kind of actions our government has undertaken in last years, what impact it had on the economic life, trade, business and other areas. Also I would like to investigate the antitrust legislation in Russia, the quality and the results of its work. In other words, to look, how good theory and practice work together in Russia.are some figures in Russia I would like to mention. First of all, it is Igor Artemiev, who occupies the post of the head of Federal Antimonopoly Service in Russia. Other important people are A. Tsarikovsky, who is responsible for control over the placement of state orders, the fight against cartels, control of market housing, construction and natural resources; A. Golomolzin - control of the energy, information technology, transport and communications markets; A. Kashevarov - control of social services and commerce, industry and defense industry, financial markets and advertising; P. Subbotin - control over authorities and the coordination of regional offices of FAS Russia; P. Tsiganov - control over agriculture and chemical industries, control of foreign investment, international economic cooperation. There are few authors whom I would like to distinguish from other: Gryaznova A.G., Yudanov A.U., Nikiforov important to divide 2 concepts: object of research and subject of research. Object of research is a large, relatively independent part of the object area in which the subject of study is located. Subject of research is particular part of the object. In other words, the object of study is a broader concept than the subject. Here, the object of research is the monopoly and their regulation, which results in antitrust policy of the state. The subject of research is consideration of issues of competition law and possible solutions, identifying sources of antitrust issues, the main trends of the antimonopoly legislation by analyzing existing legislation taking into account the peculiarities of the Russian economy.essay includes front page, content, introduction, main body, conclusion and bibliography. In the introduction I clearly and concisely describe the main aspects of the work. There are 2 chapters in the main body; the first chapter contains 2 paragraphs and is devoted to the theoretical part. In the chapter 1 I consider antitrust regulation, looking at it from the theoretical side of the question. Chapter 2 is devoted to the practical approach to the antitrust regulation in Russia: methods, legislation, and tendencies. In conclusion I summarize information from the whole essay and briefly explain the recent situation in Russia. Bibliography contains list of books I used in this essay, there are both textbooks and articles.


1. Concept of antitrust regulation


.1 The necessity of antitrust regulation

economy cannot be effective without the active role of the state. For the state the classic features always retained such as: freedom of entrepreneurship, stimulating business activity and the fight against monopolistic tendencies. The scope of state regulation of its specific forms and methods vary considerably across countries. They reflect the history and tradition, the size of the country, and many other factors. The tasks of the state are connected not only with the creation of conditions for the functioning of the market, but also with the struggle against the monopolization of the market. Determining the direction of state regulation, we are talking about the economy being in a state of transition, which happened in a protracted crisis, largely bearing the non-classical, unconventional character. It is associated with rupture of the deep relations of reproduction in the economy, with the development of production decline in the destruction of the economic structures. The central issue of state regulation is a problem of development of socio-economic transformation in a country with a clear definition of the ultimate goals, priorities, and milestones. The system of state regulation of the economy that has developed in all industrialized countries, as a mandatory element provides the creation of favorable conditions for the development of competitive environment in the market of goods and services. Antitrust regulation is the most important part of state economic policy in all countries with developed market economies. Antitrust regulation is a purposeful state activity carried out on the ground and to the extent permitted by applicable law, to establish and implement rules of economic activity in the commodity markets in order to protect fair competition and ensuring the effectiveness of market relations.involves a number of negative consequences for the economy. Underproduction, overpriced, inefficient production are only tip of the iceberg of monopolistic abuse. The same reasons make clients of firms-monopolies to put up with high prices, forcing them to agree with the poor quality of the product, its obsolescence, lack of service and other forms of neglecting of the interests of consumers. Anyway, they have no choice. The monopoly blocks the market mechanism of self-regulating, which is another danger. Poor and expensive products may appear in non-monopolized industry, but there such excesses are only a temporary episode. The competition quickly puts everything in i

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