Monopoly vs competition: condition, scenarios and factors in markets of addictive goods

In Russia in the 90-ies of XX century in the markets of alcoholic beverages, tobacco products, gambling, the system of competition through deregulation, de-monopolization and liberalization of economic activities were created without taking into account the specificity of these goods, theoretical assumptions, practice and experience of Scandinavian countries, similar with our country in consumption patterns. With an increase of the crisis phenomena in economy the Russian government turns for replenishment to the markets of addictive goods, which could happen at the current stage. The publication presents the actual competitive characteristics of markets for addictive goods, the main scenarios of institutional regulation of these markets and factors of their implementation. The market of alcohol products is a market of monopolistic competition. The specificity of the competitive conditions on the market of tobacco products and energy drinks market can attribute them to oligopolistic. Government controlled gambling markets within the borders of the gambling zones, as well as licensed games in bookmaker offices and the totes, are regulated by oligopolies. On the black market the gambling institutions continue their activity with the possibility to concentrate into a monopoly. The drug market works under following conditions: the official state ban; strict state monopoly on the cultivation of narcotic plants for use in scientific, educational purposes, in expert and other legitimate activities; the shadow monopoly structures in the form of cartels, syndicates or multi-purpose organized criminal groups. The field of institutional changes on the market of addictive goods is determined within the framework of the inertial, modernizational, state-monopolistic and prohibitionist scenarios, which saving factors are political, economic, social, foreign, emergency ones, their impact is different in the markets of alcohol products, tobacco products, electronic cigarettes, gambling games, energy drinks, drugs.

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