Oligopolistic markets: transformation of the essence and forms of competition

Abstract

Relevance of the research. In the past 20 years the markets in the developed economies demonstrate a trend to concentrate economic agents and their consolidation to optimize economic processes, maximize efficient business performance, and pursue robust communication policy. The markets of raw and ready products, international and interregional services and works are shifting towards oligopolization. Therefore, it is important to analyze and characterize the ongoing significant changes in functioning of oligopolistic markets triggered by globalization, hyper-competition, new technological paradigms, development of innovations and consumer behavior trends in the modern economy. The main aim of the research is to outline the fundamental factors of influence upon changes in modern market performance, intensified competition under globalization and transition to the postindustrial economy summing up the studies in different research areas (strategic management, marketing, the theory of industrial organization, consumer behavior, innovations, etc.); to determine to what extent the oligopoliesstimulating factors encourage intensive competition between market participants and resist cartelization of oligopolistic markets; to describe the main characteristics of the new meaning of the competition model for innovative oligopolistic markets in comparison with the classical model of oligopoly; to identify a trend towards systemwide changes of the form and nature of competition on oligopolistic markets that requires a game-changing review of approaches to the principles of antimonopoly regulation at the modern stage; to systematize and highlight the new substantial content of the competition model on oligopolistic markets and the factors influencing intensified competition on oligopolistic markets. Research methods: systemic analysis, comparative and normative legal analysis. Results. The features of competitiveness within the frame of two models - classical oligopoly and oligopoly changing under the influence of new economic trends - occur in multilevel, poly-structured, inter-sectoral competition of business-systems formed by the market leaders. Cross-competition between participants of different systems creates the conditions for flexible market conduct. Conclusions. System-wide changes in the form and nature of competition on the oligopolistic markets, including the innovative ones, initiate the development of new institutional mechanisms and approaches to substante the principles and methods of antimonopoly regulation at the present stage.