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

An 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:

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

2) the share of each of the participants is significant, and they have mutual influence;

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

4) the occurrence of a secret collusion is possible;

5) the conditions for entry into the market of new participants and exit from it are limited;

6) data market is subject to greater control and influence from the authorities state power.

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

In an oligopoly, both price and non-price competition is possible. But competitive pricing methods tend to be less effective. There is a strong interdependence between enterprises. If one of the competitors cut prices, the others will have to respond adequately, otherwise there will be too much loss of customers and profits. By making a retaliatory move, they will simultaneously nullify the efforts of the price leader. Therefore, price methods here can bring a short-term effect.

Since the products are produced by large enterprises, the cost of production due to economies of scale is reduced. Price changes by one of the competitors dominating in production or sales determine pricing policy in branch. Others "obey" her. At the same time, price competition is weakening. This situation is called leadership in prices characteristic of an oligopoly.

In an oligopoly, non-price methods of competition - from advertising to economic espionage - are more effective, so they are used more often.

Entry into oligopolistic market limited. Significant capital investments are needed to create an enterprise that can withstand firms that already control this market.

Under oligopolistic competition, a firm is able to control two main parameters of its activity - the price and volume of output of products or services, it is beneficial for it to produce less and to a greater extent overestimate the price.

The highest level is not perfect competition is an pure monopoly when an entire industry is represented by a single firm. Those. the concepts of "firm" and "industry" quantitatively coincide. 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: one Railway, the only airport, one bank, one power plant, etc.

Pure monopoly(from the Greek monos - one, polio - sell) - this is a market in which one seller confronts many buyers. Monopoly assumes that one firm 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 monopoly firm.

The concept of "monopoly" has two meanings: First of all, by monopoly we mean large enterprise, which occupies a leading position in a particular industry; Secondly Monopoly refers to the position of a firm in a market that allows it to dominate it.

Purpose of Monopoly- obtaining excess profits by controlling the price and volume of production in a monopolized market by creating the most favorable conditions.

Main Features of Pure Monopoly:

a) the sole seller of the manufacturer;

b) there is no product differentiation, therefore, the absence of substitute products;

c) the seller carries out practically full control over prices;

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

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

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

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

1. Natural monopoly – presented 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, irreproducible and different quality of natural resources (differentiation of their quality);

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

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

2. Artificial monopolies - These are associations created for the sake of obtaining monopolistic benefits. Artificial monopolies act as various monopolistic associations. An artificial monopoly arises on the basis of collusion or suppression of competitors.

Allocate also 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 (authorities government controlled) :

1. Open monopoly - a monopoly in which one of the firms (at least for a while) becomes the sole supplier of the product, but has no special protection from competition. In a situation of open monopoly often find themselves firms that first entered the market with new products. Options for the optimal behavior of a monopoly 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 restrict competition: patents, licenses, copyright, etc. In practice, only a few monopolies are truly completely closed. In the real economy, there is always the possibility of the emergence of substitute goods, as well as the possibility of removing 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 run. The firm earns enough income to recover all costs, including the opportunity cost of capital, but does not appropriate economic profit.

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

monopoly power- the degree of control exercised by monopolists in their markets.

To measure the "strength" of monopoly power, one also uses index English economist Abby P. Lerner (1905 – 1982):

where M is the index of monopoly power;

P m - monopoly price;

MC - marginal cost (optimal)

economic sense Lerner index is as follows: the greater the gap between monopoly price and marginal cost, the greater more power monopoly power.

Under perfect competition, prices (P) are equal to marginal cost (MC). Therefore, under conditions of perfect competition, the strength of monopoly power is zero, because P - MC = 0. In conditions of imperfect competition, the monopoly price (P m) is higher than marginal cost (MC). Therefore, the interval between 0 and 1 just characterizes the strength of monopoly power. The higher this indicator, the higher the monopoly power of the firm.

=

Marginal cost (MC) in Russia is generally not taken into account 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 ratio between them will answer the question: what is the share of profit in the total volume 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 set on the market, which exceeds the marginal cost, 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 in consumer income. Monopoly prices are always higher than the competitive price.

Monopoly price is a special type of market price, which is 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 the result of an agreement between the monopolists that dominate the market for a given product, and is set based on the calculation of obtaining the largest possible profit from the sale of goods available to sellers. The monopoly price is often much higher than that established in a competitive market. ( Raizberg B.A., Lozovsky L.Sh., Starodubtseva E.B.Modern economic dictionary. - 2nd ed., corrected. Moscow: INFRA-M. 479 p..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 areas (Fig. 7.3):

Origin process monopoly unions 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 quotas for manufactured products and the division of sales markets. The objects of the agreement can be: pricing, spheres of influence, terms of sale, use of patents. Cartels operate, as a rule, within the same industry, 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, patent exchange, etc.

2. Syndicates – organizational form an association, in which the participants in it lose their commercial marketing independence, retain legal and industrial freedom of action. In the syndicate marketing of products, the distribution of the order is carried out centrally. These are associations with the aim 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 of 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 association is based on joint ownership and general management production and sale of goods. The management of the trust is carried out from a "single center". The profit of the trust is distributed in accordance with the business participation of individual enterprises.

4. Concern - organizational form of the enterprise association various industries under the same management and financial control. Usually in the group, except for production, transport and trade enterprises, includes banks or some other financial institutions- insurance, pension funds, credit institutions, etc. The members of the concern remain formally independent, but their activities are controlled and managed from a single center of the company. This structure improves the competitiveness of the firm by domestic financing, sales of products of the group's divisions at internal tariff prices, transfer of know-how, etc.

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

5. Pool - an association that has become widespread in the field of project use. Pool members seek mutually beneficial agreements on the form of transfer of patents and licenses. Profit is distributed in accordance with the quota determined when joining the pool.

6. Holding - joint-stock company, which owns a controlling stake in legally independent enterprises to exercise control over their operations. Holding - the parent company, a company created by large monopolies to manage subsidiaries through the participation system. Having “absorbed” a controlling stake in tens and hundreds of enterprises, the holding directs their development, and growing incomes allow large holdings to turn to their own entrepreneurial activity. Legally, there are joint-stock companies, LLC, 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 their controlling stake.

7. Conglomerates - associations based on penetration large corporations in industries that have no production and technological connection with traditional areas activities of the parent company.

8. Legal forms of pure monopoly are also patents, copyrights, trademarks. Patent - This is a document issued by the government to a person granting the exclusive right to manufacture, 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 ensures the protection of the ideas of the inventor. 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. Antitrust law and its role in economic system. Antimonopoly policy in the Russian Federation. Functions of the Federal Antimonopoly Service of the Russian Federation.

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

Administrative measures provide for the introduction of direct restrictions.

Economic measures to maintain competition and fight monopoly include:

Encouraging the creation of substitute products;

ü support for new firms, medium and small businesses;

ü attraction of foreign investments, 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.

Antitrust regulation is a system of regulations aimed at overcoming the negative sides of the monopoly associated with power, allowing them to suppress consolidated competition and control prices.

Methods of antimonopoly regulation:

The monopolization of the market is limited;

Constant state monitoring;

The establishment of monopolistic prices is prohibited;

Preservation and maintenance of competition.

Antitrust Law- legally fixed fundamental rules for the activity in the market of participants in economic turnover, public authorities and administration.

Objectives of antitrust law:

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

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

Since the activities of monopolies are anti-social in nature, the protection of free competition and the restriction of the activities of monopolies is one of the most important functions of the state.

At the end of 1991, Russia adopted the "Law on Competition and Restriction of Monopoly Activities in Commodity (Markets)", which defines the organizational and legal framework prevention, restriction and intersection of monopolistic activities and unfair competition and is aimed at providing conditions for the creation and effective functioning of commodity markets.

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

In order to implement the state policy to limit monopolistic activity, a state committee on Antimonopoly Policy (Antimonopoly Committee), later transformed into the Federal Antimonopoly Service (FAS).

FAS holds public policy on the development of commodity markets and competition, the restriction of monopolistic activities and the suppression of unfair competition.

Antitrust policy is a complex government measures(relevant legislation, taxation system, denationalization, denationalization and privatization of property, encouragement of the creation of small businesses, etc.), directed against the mobilization of production and the development of competition among producers.

By decision of the Federal Antimonopoly Service, the share of an economic entity may be limited to 35% of sales 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 (an economic entity whose share in the market of a certain product does not exceed 35% cannot be recognized as dominant);

ü provision of preferential loans, as well as reduction of taxes or exemption from them for economic entities entering this commodity 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 attraction of foreign investments, establishment of joint ventures, creation and development of 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 economy There are four main forms state regulation economies that also implement antitrust policy (Figure 7.5).

Figure 7.5 - Forms of state regulation of the economy

AT modern conditions main function state becomes the organization of economic, legal and socio-political space for a market economy, the creation level playing field for all forms of business. The focus is on quality parameters economic development: improve the quality of life, protect environment and etc.

State regulation of the market economy has three goals:

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

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

o minimizing the negative consequences of market relations.

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

Additional questions for the seminar session 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 of "oligopsony" and "monopsony", as well as how these phenomena are characterized.

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

Modern economics is quite an interesting and broad area that combines many concepts and terms, laws and factors. One of these concepts is monopoly. It is about her that will be discussed in the article.

The concept and essence of monopoly

Explanation of the term monopoly enough. If we consider the etymology of the word "monopoly", then it consists of two Greek words: "mono"- one and "poleo"- I sell, in fact meaning - one seller.

Definition 1

If to speak in simple words, then monopoly It is the sole right to possess something or to produce something. As a rule, a monopoly enterprise is big company, an organization or entity that is the sole provider of products, goods or services. A monopoly organization is characterized by tight control and overpricing. It is worth noting that in addition to the concept of "monopoly", there is also "absolute monopoly".

So, what is the difference between the two concepts: monopoly and absolute monopoly? In the case of a monopoly enterprise, there is an option for another player to enter the market, which will sell a similar product, provide the same services. Absolute monopoly excludes this fact, since it implies the fact that the enterprise solely and completely owns the resources for the production of goods or the provision of services.

For a more detailed understanding of the differences, consider examples of ordinary monopoly from absolute, on the territory of Russia. So, the Russian Post can be called a monopoly enterprise. This one large organization, which provides a range of services for the delivery of goods throughout the territory Russian Federation. There are small and insignificant competitors, for example, those who organize transportation within the same region. However, this clearly does not cause significant competition.

Example 1

Gazprom can be called an absolute monopoly enterprise. This company does not just have sole right to sell natural gas. Gazprom fully owns gas production, that is, all gas in Russia actually belongs to this organization. There is absolutely no competition.

Three types of monopoly. Explanations and gist

There are three main types of monopolies:

1. closed monopoly.
2. natural monopoly.
3. open monopoly.

closed monopoly

It implies that the company's monopoly right is protected legally, namely by laws, for example, a patent or copyright.

An example of a closed monopoly is − operating system IOS, which is used on Apple smartphones, and its rights and patents belong to the same company of the same name.

natural monopoly

A natural monopoly arises as a result of the fact that the demand for a particular product or service is satisfied by one enterprise. Goods or services that are produced within a natural monopoly cannot be replaced by others.

Examples of a natural monopoly include services for the transmission of electricity and heating, telephone, rail transportation.

open monopoly

In the field of open monopoly, there are companies that are the only producers or sellers of goods, but are not legally protected from competition. As a rule, these are companies that entered the market with new products or companies that are fundamentally different from competitors, for example, in terms of quality.

Example 2

In the table we give the reasons for the emergence of monopolies and their characteristics.

Picture 1.

Pros and cons of monopoly in the economy

If we talk about the advantages of a monopoly in the economy, then there are practically none. To be honest, except for the monopolist himself, there is practically no benefit from the monopoly.

Monopoly inefficiency driven by two simple factors:

1. Resource allocation. All resources (goods, services) are owned by one monopoly company. Thus, prices are set not in relation to the demand for goods, but "arbitrarily" by the monopoly company. An example is the supply of electricity. Demand is almost one hundred percent, but the price is set regardless of the desires of consumers.
2. Lack of competition. Due to the fact that the monopoly company has no competitors, it is less stimulated for development. World economic practice has shown that the competitive market is more efficient and achieves better results in development.
3. Lack of incentives. All the same lack of competition causes the inefficiency of a monopoly enterprise, due to the fact that there are no incentives and prerequisites to make a product, service or product better. The principle of "one seller - one quality" applies.

Remark 1

In the end, it is worth noting that there is practically no absolute world monopoly. As a rule, monopoly companies operate within the same country or region, region or city.

If a society wants to control monopolies, at least those that have not been created by its own government, it has three options. First It's an American-style antitrust policy; second- state regulation; and third - public property and operation. As for a monopoly, none of them are ideal.

Antitrust policy is expensive to enforce: the Justice Department's antitrust division had a budget of $133 million in 2004, and the Federal Trade Commission's budget was $183 million. The defendants (who also face a hundred private antitrust cases each year) probably spent ten or twenty times as much. In addition, antitrust regulation is slow moving.

A CLOSED MONOPOLY is a monopoly protected by legal prohibitions on competition. CLOSING OF THE EXCHANGE - the end of the trading day, the time when the last orders of clients are executed. CLOSED JOINT STOCK COMPANY - a joint stock company whose shares are sold only to its employees and are not sold to the outside. Pledge - property or other valuables that serve as collateral for a loan (sometimes on

CLOSED MONOPOLY - an official legally protected monopoly operating in those areas of the economy where competition is subject to prohibitions.

A closed monopoly is protected from competition by legal restrictions. An example is a monopoly postal service United States for 1st class mail delivery. Other options for the emergence of a closed monopoly are patent protection, the institution of copyright.

Virtually all monopolies can be considered open. Legal barriers that protect closed monopolies from competitors can be overturned by the courts. The cost advantages of natural monopolies can be offset by changes in technology. All monopolies are subject to competition from substitute products.

Such a classification of monopoly into three categories is conditional. Some firms may belong to more than one type of monopoly. These include, for example, firms that maintain the telephone system, as well as electric and gas companies, which can be classified as both a natural monopoly (because there are economies of scale) and closed monopoly (because there are barriers to competition). A classification based on time intervals can also be made. For example, a patent certificate gives a firm a short-term closed monopoly. The latter is not only due to the limited duration of the patent, but also due to the fact that competitors can invent new products.

MONOPOLY CLOSED - see. CLOSED MONOPOLY

On the whole, the rules governing the activity of FIGs are primarily aimed at mitigating the threat of the formation of large closed monopolies in the markets. But at the same time, these restrictions hinder the improvement of the ownership structure and corporate governance. And the creation of conditions for deepening the integration of enterprises is no less important criterion for evaluating the state economic policy in relation to FIGs than antimonopoly regulation. In this regard, it is necessary to touch on at least three interrelated issues related to the development of integration - property restructuring, tax consolidation and financing of FIGs.

The WB provided Russia with new structural and investment loans. So, on December 18, 1997, two loans of $ 800 million each were approved, one for structural restructuring of the economy, restructuring natural monopolies in the electric power industry, gas industry and railway transport, the second - for transforming coal mining - liquidating the Rosugol company, privatizing viable coal enterprises and closing unprofitable mines.

The crisis situation of recent years has exacerbated the existing contradictions. There were attempts to actually close the regions, introduce administrative regulation of prices for essentials, establish their own rules for the sale of goods, create their own gold and foreign exchange reserves, establish control over the tariffs of natural monopolies, conduct their own tax policy, etc.

In fact, all M. can be considered open. Legal barriers that protect closed M. from competitors can be canceled by the court. The cost advantages of natural M. can be reduced to nothing by changes in technology. All monopolies are subject to

Overproduction of uranium products has led to the closure of many uranium mines and hydrometallurgical plants producing concentrates. The overproduction of uranium is explained by the fact that it continues to be used for military purposes and only 3-5% is spent for the needs of the national economy. The monopolies hamper the use of atomic energy in non-military industries, since this brings them less profit than if they received it from the use of atomic energy in the production of atomic weapons.

Marxist-Leninist doctrine of the role of banks in the construction of socialism. Study of the role of credit and bankroll under capitalist conditions. way of production led Marx to the conclusion about the dual nature of the capitalist. credit and the need to use credit in the transition period from capitalism to socialism. The Communist Manifesto noted that the proletariat, which carried out the revolution, along with other important measures, should centralize credit by creating a national bank with state capital and an exclusive monopoly in the field of banking. In his work Principles of Communism, Engels also emphasized the need to centralize credit and concentrate money trade in the hands of the proletarian state, while he pointed out that all private banking and banking offices should be closed, and banking operations should be carried out only by state credit institutions. On the need to replace all private B. capitalist. about-va state B. Marx and Engels indicated in the Demands of the Communist Party of Germany.

When the leader sets a price below the minimum average cost of a typical firm from a competitive environment, outsider firms leave the market, and the dominant firm takes a monopoly position, it no longer faces residual demand, but all demand in the industry D(P), and behaves like a typical monopoly. Here, however, its marginal revenue curve is steeper than in the previous region, so that the aggregate marginal revenue curve breaks at the point corresponding to the PI closing price of outsider A. (In Fig. 4.1 this point

The degree of monopolization of the national economy (the concentration of pure monopoly markets) and the severity of the power of monopolies over the market depend on the level of openness of the economy. The closed nature of the market, associated with the impossibility of foreign and regional competition, preserves the monopoly position of the manufacturer and his monopoly power.

Monopolies that are protected from competition in the form of patents, licenses, etc., are called CLOSED. Those monopolies that do not have such protection are called OPEN.

In 1946 there were only 16 uranium mines in the USA. Subsequently, their number began to grow and in 1956 reached 1000. After 1959, when market conditions became less favorable, the American monopolies operating in the uranium mining industry obtained from the US Atomic Energy Commission a ban on buying uranium ore from small producers, if their mines had an annual output of less than. 9.1 tons of uranium oxide. At the same time, the purchase of uranium mined at deposits discovered before November 1958 was stopped. This decision by the US Atomic Energy Commission led to the closure of half of the uranium mines. According to the US Bureau of Mines, in 1960 only 538 mines were being developed in the country, 28 of them were the largest. The latter were distributed among the states of Utah - 11, Wyoming - 7, New Mexico - 6, Colorado - 2, Arizona - 2, Washington - 1. In 1959, over 60% of all US uranium production was produced at the above large mines Table 8). In June 1962, due to the fact that the US Atomic Energy Commission relaxed the existing restriction on the purchase of uranium ore from small producers, the number of active mines again reached the 1956 level. Subsequently, the number of mines began to decrease again and by 1965 there were no more than 700, and by 1967 - no more than 200.

CLOSED MARKET (losed market) - a sector of world commodity markets, access to which is limited to a certain circle of sellers (buyers), and trade and pricing have certain specifics. Depending on the nature and degree of "closeness", four types of Z.r. can be distinguished. The first type is the turnover within international monopolies between their

MONOMETALLISM (from the Greek to-nos - one, only and metal), monetary system, in which one metal serves as a universal equivalent and bimetallism replaced the basis of monetary circulation. Under monometallism, functioning coins and tokens of value are exchanged for precious metals. At first, as a rule, silver was used, but with the discovery of new gold deposits, most countries at the end of the 19th century. switched to gold. In the middle of the 20th century in the vast majority of states, gold monometallism was replaced by a gold exchange standard. V. I. DIVEEV MONOPOLY (from the Greek monos - one, the only one and the Greek poleo - I sell), the exclusive right of production, trade, fishing, etc., owned by one person, a certain group of persons or the state market, in which there is one seller of a certain product or services. Distinguish between closed, natural and open monopoly.

So, in the initial period of the development of large-scale Russian industry, when the government was faced with the task of creating new industries in the country, a common measure to encourage manufacturers was to give them (often foreigners) a monopoly of production for a certain period. This practice was especially characteristic of the reign of Elizabeth. For example, at the request of Chamberlain and Cozens, the founders of the first St. Petersburg chintz factory, in 1753, the establishment of chintz factories throughout the empire was banned for 10 years. In the same year, the merchant Fedotov received a similar privilege, setting up a gold and silver leaf factory in Moscow. In some cases, powerful manufacturers even sought the closure of previously established factories that competed with their own.

One of the first steps to take when studying the organization of industry markets is to get an idea of ​​the varieties of industry structure. Different authors have developed different classifications. As a rule, the list, covering all possible variations from monopoly to competition, is quite long: pure monopoly, dominant firm, closed oligopoly, open oligopoly, monopolistic competition, pure competition49.

MONOPOLY [mono... the exclusive right of production, trade, trade, etc., owned by one person, a certain group of persons or the state of the market, in which there is one seller of a certain product or service. Distinguish between closed, natural and open monopoly.

Necessity N. b., as one of the laws of the socialist. revolution and socialism. construction, was scientifically substantiated by the classics of Marxism-Leninism. In the Manifesto of the Communist Party, as one of Ch. measures of the proletariat after the revolution, centralization of credit was planned in the hands of the state, through a national bank with state capital and with an exclusive monopoly (K. Marx and F. Engol's, Soch., 2nd ed., vol. 4, p. 446 ). K. Marx and F. Engels considered N. b. among such important measures of the proletariat after the conquest of power, as the expropriation of land. property, the nationalization of industry, transport and communications, compulsory labor service, etc. The founders of scientific. communism provided not only the nationalization of banks, but also the centralization of banking in the hands of the proletarian state by combining the nationalized banks into a single central

Ed. A.V. Sidorovich

Section I. MICROECONOMICS

Chapter 17

Types of monopolies. Closed and open monopoly

Using the criteria for the origin of the above sources of monopoly power, several types of monopolies are distinguished.

A closed monopoly occurs when a firm's monopoly position in the market is protected by law or by some legal rights that protect it from competition. In this sense, a closed monopoly is the most stable form of monopoly power, which, however, most often does not lead to high monopoly profits, since the granting of exclusive rights is always accompanied by restrictions on both the price level and the rate of profit.

An open monopoly reveals itself when the possession monopoly power is the result of the author's achievements of the company itself ( New Product, new technology, achievements in marketing). The specificity of this type of monopoly is that it is always temporary, since the market advantages associated with innovations can be surpassed or copied by competitors. Nevertheless, it is under conditions of an open monopoly that a firm can most fully realize its market power and receive monopoly high profits.

Monopoly- such economic organization industry (or the economy as a whole), which allows one of the participants in market relations to impose corporate economic goals both to their counterparties and to society. In microeconomics, consider Various types monopoly relations: absolute monopoly, entrepreneurial, natural, etc.

Monopoly absolute (pure)- extreme deformation of the market, in which one firm acts as the sole producer of the product. Signs of an absolute monopoly:

1) sole seller

2) production of a product that is unique in that there are no close substitutes;

3) economic and legal barriers blocking entry into the industry;

4) the company exercises significant control over the price, "dictates the price."

Unlike a perfect competitor, which determines only its own production volume, a profit-maximizing monopolist has a wider range of tools - it can maneuver both the price and the quantity of output. The monopoly objectively contributes to the restriction of competition, so the state implements a set of measures for antimonopoly regulation of the economy.

State monopoly- a market situation in which the state is the only seller of any product in the country. The state monopoly develops in the markets for goods of inelastic demand, which are indispensable elements of the consumer package.

Bilateral monopoly is a market in which a single seller (monopolist) is opposed by a single buyer (monopsonist).

monopoly natural- an industry in which long-run average costs are minimal only if one firm serves the entire market. In such sectors (gas, water, electricity, communications, etc.), the economies of scale caused by the growth of the scale of production are especially pronounced, and at the same time, competition is impossible or unacceptable, because the costs of bankruptcy are so high that it is inappropriate to allow competitors to enter such a market. . The state grants natural monopolies exclusive privileges to serve the population of a given region, but retains the right to control their activities. State ownership (ie nationalization) or state regulation are used as possible means of ensuring socially acceptable behavior of natural monopolists. The result of state regulation of the activities of firms, primarily the quality and prices of the services they provide, is a "regulated monopoly".

monopoly closed- a monopoly protected by legal norms that restrict competition: patents, licenses, copyright, etc. In practice, only a few monopolies are really absolutely closed. In the real economy, there is always the possibility of the emergence of substitute goods, as well as the possibility of removing legal barriers that ensure the appropriation of net economic profit.

monopoly open- monopoly, in which one of the firms (at least for a while) becomes the sole supplier of the product, but has no special protection from competition. Firms that first enter the market with new products often find themselves in a situation of open monopoly. Options for the optimal behavior of a monopoly firm in this case can vary from a policy of maximizing short-term profits to limiting pricing.

If the industry is a natural monopoly, then output and price will be set at Q1 and P, respectively, at point (E), where long-run marginal cost (LMC) and marginal revenue (MR) intersect, i.e. under conditions profit maximization by the monopolist.

Since in this position the price (P1) exceeds the value of the average costs, the natural monopolist receives a significant profit in the size of the P1E1MPM rectangle, and the price significantly exceeds the evil costs.

Optimal, from the point of view of society, the activity of the industry corresponds to the level of the point E3, at which the long-term marginal cost (LMC) coincides with the value of an additional unit of production for consumers, i.e. with the demand curve D. Output volumes below Q3 are inefficient due to the fact that that consumers would be willing to pay more than long-run marginal cost for more output (the LMC curve is below the demand curve D). If the output exceeds Q3, then the additional production of products exceeds the level of demand for this product (the LMC curve is located above the demand curve D). Thus, output in the amount of Q3 is optimal from the point of view of society as a whole. However, point E3 cannot be a point long run equilibrium, since the price corresponding to it is lower than the LAC value, and the firm cannot exist for a long time in the absence of a normal profit.

15. Losses from imperfect competition ("dead loss"). Antimonopoly regulation.

If the price of P1, it would be like a perfect conc, would consume an excess of P1-E1-P0. V carry K price - P2, Q2

Antimonopoly reg.

The first antitrust law in modern history was passed in 1889 in Canada. A year later, the Sherman Act was passed in the United States. Senator John Sherman, who won antitrust legislation in the US, accused the trusts of restricting output to drive up prices. Since the passage of the Sherman Act, antitrust laws have spread to most countries in the world. This process was not instantaneous: for example, in Italy, the corresponding law was adopted 100 years after the Sherman Act - in 1990. There are also examples of the abolition of antitrust laws. Thus, the law “On freedom of trade and competition” adopted under M. Saakashvili in Georgia, in contrast to the previous law “On monopolistic activity and competition”, contains only prohibitions on the actions of government bodies, but not private companies. Thus, there is currently no antimonopoly legislation in Georgia. The basis of the Russian antimonopoly legislation is the Federal Law (Russia) "On Protection of Competition". The law contains restrictions on the freedom of entrepreneurial activity and freedom of contract for economic entities that occupy a dominant position. The presence of the latter is established on the basis of determining the company's share in total sales in the market or determining the aggregate market share held by several of the largest (in terms of sales volume) companies in the market. Along with this, the federal law "On the Protection of Competition" introduces control over mergers of organizations, the sale and purchase of large blocks of shares in companies, as well as a ban on price negotiation between business entities, market division and some other practices. To date, we can confidently say that the monopoly law in the Russian Federation is not being implemented.