markin, maxim

Trying to Restore the Competition: Conflicting Results of the State Regulation in Russian Retail Industry

The text is devoted to the issue of the state regulation of markets. Deciding to pass a new law the Government usually plans to solve the problems which take place in an industry. But sometimes the state regulation of markets leads to the opposite results. In fact trying to restore the competition the Government may support the dominant companies. As a result, there are no benefits for market actors which have been expected to become the winners of the state regulation. So the dominated companies find themselves in the worse conditions than they were before the Government interference.

This research concerns the expectations and the consequences of the state regulation in Russian retail industry at the end of the 2000th. Basing on two quantitative surveys which were carried out in 2007 and 2010 by the research group of the Higher School of Economics (Moscow, Russia) the author demonstrates that passing the trade law in 2009 led to the conflicting results. The aim of the state regulation was to defend the interests of the dominated market actors (small domestic suppliers and regional retail chains) but the dominant companies became the winners of the Government interference. Both retailers and their suppliers pointed out that big producers and distributors (including transnational corporations) and federal retail chains got the benefits from the state regulation of the market. So planning the competition policy the state should take into account the possible conflicting results of its actions.

Wednesday 24 October 14:30-16:30 Panels I, Panel 2 Regulation, Education and Economic Competition (Hall 14)