Karagezyan U.V. The Power Asymmetry and Non-Competitive Behaviour of Firms at Consumer Markets

DOI: http://dx.doi.org/10.15688/jvolsu3.2016.1.3

Ulyana Vladimirovna Karagezyan
Candidate for a Degree, Department of Economic Theory and Economic Policy,
Volgograd State University
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Prosp. Universitetsky, 100, 400062 Volgograd, Russian Federation

Abstract. The specific features of formation of the market economy in Russia caused not only development of the competitive environment, but also fixing of the model of noncompetitive behavior of enterprises. In a contradiction of the economic theory in which one of necessary conditions of “survival” of the companies is improvement of quality of goods, in the real economy consumers often face acquisition of low-quality goods. This article is devoted to an urgent problem of studying the model of noncompetitive behavior of firms in Russia. The purpose of this study is the explanation of the reasons of noncompetitive behavior of the enterprises in the Russian markets. On the basis of data of Federal service on supervision in the sphere of consumer protection, the dominating violations, as well as the markets most subjected to noncompetitive behavior of firms were revealed. Key characteristics of noncompetitive behavior are decline in the quality of production, violation of the consumer rights, using illegal tactics. As a result of this analysis we have made the following conclusions: violations of the rights of the consumer are expressed in realization of low-quality and unsafe products, refusal of providing necessary information on terms of transaction, imposing of additional services. The reasons of noncompetitive behavior of the companies include prevailing of the sovereignty of the producer over the consumer’s sovereignty; accumulation of the power of firms in a services sector and retail trade, a manipulative information and existence of information asymmetry between consumers and the companies. Overcoming the noncompetitive behavior of firm will become possible when power and information asymmetry decreases at the consumer markets.
Key words: power asymmetry, noncompetitive behavior of firm, information asymmetry, opportunism, consumer rights violation.

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The Power Asymmetry and Non-Competitive Behaviour of Firms at Consumer Markets by Karagezyan U.V. is licensed under a Creative Commons Attribution 4.0 International License.

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