Latest Articles from Russian Journal of Economics Latest 2 Articles from Russian Journal of Economics https://rujec.org/ Fri, 29 Mar 2024 09:17:03 +0200 Pensoft FeedCreator https://rujec.org/i/logo.jpg Latest Articles from Russian Journal of Economics https://rujec.org/ The curse of antitrust facing bilateral monopoly: Is regulation hopeless? https://rujec.org/article/27031/ Russian Journal of Economics 4(2): 175-196

DOI: 10.3897/j.ruje.4.27031

Authors: Andrey Shastitko, Claude Ménard, Natalia Pavlova

Abstract: This paper is about the challenges that antitrust authorities face when dealing with bilateral monopolies. The curse of antitrust refers to traps threatening the efficient applicability of antitrust policies in these situations. Standard theories diverge about the attainability of equilibrium under bilateral monopolies but share skepticism about its efficiency if it ever exists. We suggest a different approach, based on transaction cost theory. First, since bilateral monopolies often develop in the upper segment of value chains, misalignment between parties may generate negative externalities. Second, if parties reach an agreement, the impact of the governance mechanism implemented must be assessed beyond the usual parameters of prices and quantities. Indeed, the risk of negative externalities in the absence of appropriate governance increases dramatically when “critical transactions” are at stake. With vertical integration prohibited, second-best alternatives in which antitrust authorities leave room for innovative hybrid governance may allow internalizing externalities while avoiding high switching costs.

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Research Article Sat, 30 Jun 2018 10:56:50 +0300
Markets of joint products: A theoretical model and policy implications https://rujec.org/article/27948/ Russian Journal of Economics 1(2): 199-216

DOI: 10.1016/j.ruje.2015.11.001

Authors: Andrey Shastitko, Anastasia Shastitko

Abstract: The article considers the phenomenon of price behavior in markets of joint products. It shows that conclusions about the nature of economic entities’ behavior on this type of market could be inaccurate if the characteristics of these markets, such as joint costs, are not taken into account. For this purpose, a theoretical model, built according to basic microeconomic principals, is applied. This model provides an opportunity to reveal—without further new institutional analysis —that the reason for price deviation from a competitive level does not always lie in actions restricting competition.

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Research Article Sun, 31 May 2015 00:00:00 +0300