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Competition issues in the procurement of capital-largest consumer products (lessons of antitrust case)

Listed author(s):
  • Shastitko, Andrei


    (Russian Presidential Academy of National Economy and Public Administration (RANEPA))

  • Golovanova, Svetlana


    (National Research University Higher School of Economics)

The article is devoted to discussion of the recent antitrust case against the Russian manufacturers of large diameter pipes for violating the law "On Protection of Competition" in the part of the ban on a section of the market. The present case is a clear illustration of the importance of studying the details of institutional actions in qualification of market participants and their consequences. The analysis of the case with the application of modern economic theory shows that the hypothesis of collusion in the form of market sharing by territorial or other characteristics are not consistent with the active participation in this agreement the main consumer of LDP. At the same time the selected format interaction pipe group companies and OAO "Gazprom" - indicative planning - well explained from the perspective of reducing the risks in the contract terms of the scale of specific investments from the pipe manufacturers.

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Article provided by Russian Presidential Academy of National Economy and Public Administration in its journal Economic Policy.

Volume (Year): (2014)
Issue (Month): ()
Pages: 67-89

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Handle: RePEc:rnp:ecopol:ep1419
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  1. Williamson, Oliver, 2009. "The Theory of the Firm as Governance Structure: From Choice to Contract," Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 6, pages 111-134, December.
  2. Sergio Ermacora & Senada Smajić, 2009. "The Make-or-Buy Decision in the Croatian Shipbuilding Industry: A Transaction Cost Economics Approach," South East European Journal of Economics and Business, De Gruyter Open, vol. 4(1), pages 81-105, April.
  3. Ivaldi, Marc & Jullien, Bruno & Rey, Patrick & Seabright, Paul & Tirole, Jean, 2003. "The Economics of Tacit Collusion," IDEI Working Papers 186, Institut d'Économie Industrielle (IDEI), Toulouse.
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