This article is motivated by a growing interest in the problem of merger control quality assessment. Remedies are one of the instruments of merger control and have a significant influence on the results of it. This paper aims to build and empirically evaluate a discrete choice model of merger remedies implementation in Russian merger control. The database consists of 502 merger cases accepted by the Russian antimonopoly agency between 2010 and 2012. We analyse the agency’s decisions to find which characteristics of merging firms and markets lead the Federal Antimonopoly Service of the Russian Federation to decide whether to allow conditional acceptance. We find that variables related to high market power such as high market share and significant entry barriers more frequently result in a remedy outcome. Such industries as the coal mining and chemical industry positively affect the probability of a remedy implementation. At the same time we do not find significant effects of such high-concentrated industries as energy and gas. In addition, the results also demonstrate that if one of the 5 giant firms take part in a merger, it has a positive effect on the probability of the remedy decisions. Our study did not detect the influence of the firm-buyer’s countries on using remedies.
The article considers the problem of determining the basic concepts of the theory of entrepreneurship. With the help of a comparative analysis of definitions of the term "entrepreneur" made classics of the economic, sociological and psychological science, they identify the distinctive features of the entrepreneur from other business people. With the help of the entrepreneur lifecycle model these distinctive features are summarized in a single system and provides a more precise definition of the concept of "entrepreneur". It has been shown that as a result of the refinement of a fundamentally new conceptual apparatus of enterprise many of the phenomena of business theory are easily explainable.
The article is aimed at overviewing theoretical researches on the analysis of competition in sports leagues. Supporters are treated as consumers in the market of sports services who values the unpredictability of results. The article contains a number of factors that influence the level of unpredictability, including level of talent in leagues, number of clubs capable to be on top places, and others. The first part of the article includes statistics to prove the fact of increasing competition between clubs of the major European leagues: more and more clubs compete with each other for prizes and European cup zone. There is a number of indicators to evaluate the level of competitiveness in sports leagues. Further the article contains classification of sports leagues and reasons of appearing rules that restrict competition, as well as a list of the main factors that cause market monopolization. There is also a review of several articles with models of competitive balance in sport. In the last part of the article issues for further applied researches on the topic of sport competition are listed on the basis of the results of theoretical review of sports economists in Europe and the United States.
The article considers the impact of illegal use of insider information on the securities market. The author makes the assumption that the possession of inside information violates the institute of сompetition and legal interests of market participants.
The paper analyzes oligopolistic competition in a market for a differentiated product. A comparative analysis of competition models by Cournot (output competition) and Bertrand (price competition) under prerequisites put forward by the authors shows that under Bertrand competition the price level will be lower. Whereas interrelation between firms output and profit is ambiguous (if goods produced are substitutes), and depend, other things being equal, on the attractiveness of the good offered by the firm. The results obtained are illustrated using Russia’s automotive market review. In particular, an attempt is made to classify some decisions made by car producers as the one or the other competition strategy analyzed in the theoretical part of the paper.
A critical issue for the implementation of the comparable markets method in antitrust are the criteria for choosing benchmarks. The paper focuses on the criteria for determining benchmark price levels for cases involving abuse of dominance in the form of excessive or predatory pricing. We determine the set of the most important criteria for choosing benchmark prices (such as geographical and climate conditions, standard terms of contracts, macroeconomic environment, particularities of market structures etc.) and show how the significance of specific criteria depends on the implemented form of the method and the characteristics of particular markets. The choice of criteria also introduces certain limitations on interpreting the results of comparable markets analysis, however, it is possible to soften these limitations by using additional approximations, assumptions and additional calculations.
The basic methodological problems of the modern theory of competition associated with the inaccuracy of tools for diagnosing the level of competition. Made on the basis of critical and constructive analysis of a new approach in this direction.
The article is devoted to a new approach to assessing the level of competition. It consists in the fact that the measure is not the concentration of market power, but the nature of the distribution of market power in the market. At the heart of the new measure of the level of competition is the mathematical model of Gauss, on the basis of which in mathematical statistics a normal distribution law of the random variable was described. For practical use of the new approach to assessing the level of competition in markets, two parameters are generated from the model, the economic meaning of which and practical applicability are discussed in the article.
Non-competitive behavior of auction participants is a serious problem, leading to losses of economic efficiency of projects where the mechanism is used. Such violations are quite common in Russia and are traditionally in the focus of attention of antitrust authority. In practice, the prosecution of competition-restricting agreements is often problematic, given the diversity of their forms and underdeveloped standards of proof. This, in turn, weakens the deterrent effect of antitrust prohibitions.
The purpose of the article is to assess the role of the parameters of the auctions and standards of proof applied in the Russian antitrust investigations which they play in opposition to the conclusion of the competition-restricting agreements in competitive bidding. To achieve this goal in this study we generalize the results of theoretical studies devoted to the analysis of collusion in auctions. We also analyze the most common violations of the antitrust law by auction participants found in the Russian practice. The case study method is used to identify the parameters of the auctions, facilitating entering into competition-restricting agreements, as well as problematic issues related to attracting bidders to justice for anti-competitive behaviour.
The article examines the some characteristics of the Russians mentality that affect on their economic behavior. In context of the economic mentality of Russians, authors reveal etnometric and value approaches, the concept of «inherited irrationality» and characteristics of Russian management behaviors.
Purpose - The purpose of this article is to study the ability of corporate borrowers generate shareholder value for the assessment of bank lending decisions.
Methodology - Methodology for studying the ability of corporate borrowers generate shareholder value allows us to calculate the optimal capital structure for the corporate borrower and the accounting for it when making credit decisions of the bank. Study subject 149 industrial enterprises that operate in the territory of the Russian Federation and whose shares are quoted on the stock exchange in the 2012.
Findings - In this article we tested the hypothesis of disregarding the bank when making credit decisions corporate borrower the ability to create shareholder value. Identified dynamically developing company. Proved the feasibility of the proposed method in practice.
Research limitations/implications - The research is confined to the client base of the industrial sector of economy of the Russian Federation: it will be useful to adapt the material of this article to studying other sectoral markets nationwide.
Practical implications - The results of research were used to assess credit decisions of Russian banks.
Originality/value - This article constitutes groundwork for organizing effective system of bank lending decisions that guarantees congruity of the bank’s resources and capabilities with demands and requirements of the market it operates on.