The Price Discrimination on the Shortage Markets: Theoretical Analysis

Antitrust law includes a number of evaluation norms in system of commodity market analysis and proofs of anti-competitive behavior, which provide for using wide range of economics and marketing methods. The widest field of discussing embedded in definition “price discrimination”. Specific research interest presents the making recommendations of regulation of shortage markets with unfounded differences in prices. This question we propose to consider in two articles: in first article we make theoretical analysis of price discrimination in situation of shortage markets, in second article (will be published in no. 4) we analyze marketing aspects and system of sales stimulation, which the seller accomplish on the shortage markets. In the focus of this research is price discrimination as a market mechanism and shortage markets as a market anomaly. The shortage markets in contrast of shortage on the market occurs not for reason that price is below the equilibrium level. The main reason of genesis of shortage markets is speculative demand on the markets and/or difficulties in producing goods and services. These difficulties often set by outside shocks. Price discrimination undergoing of effect of long-run shortage on markets transforming in phenomenon, which damages of consumer wealth and entrepreneurs benefits. In addition, this type of price discrimination decrease the social welfare too. The risks of price discrimination in the case of shortage markets needed new decisions and methods of regulation by state. However now we do not see some consensus in the issue of principles and instruments of state regulation of shortage markets. In the article we try to approbate some scientific results. These results are the hybrid definition of price discrimination; the legislative definitions of price discrimination as a acts which limiting competition; the criteria of functioning of shortage markets; proofs of transforming markets through the impact of long-run shortage; the difference between the case of shortage markets and the case of shortage on the markets in the classical demand-supply model; costs of price discrimination on the shortage markets; perspective antitrust regulation of price discrimination on the shortage markets.