Page 24 - Azerbaijan State University of Economics

Adalat J. Muradov, Nazim Ö. Hajiyev: Analytical frameworks and procedures for application of
demonopolization

In the second option, each enterprise owns one or several storehouses, as well as sufficient

retail-stores in order to achieve superiority over the warehouse level. If the contractual law

allows an enterprise to possess both retail and wholesale stores, and foodstuffs brokers do not

create sufficient alternatives, then the second option is more expedient.

Finally, the competition level in limited markets was evaluated according to a temporary

demonopolization plan. In a given case, such an evaluation is simple enough. Market of warehouse

economy has been sufficiently fragmented and gone through competition relationships. When there are

several retail stores across each some square kilometres, market of retail foodstuffs stores will be

competitive enough. If retail foodstuffs stores are grouped like a chain, loss incurred due to competition

between them will drop to minimum during rendering services with different chains to each region.

6. Conclusion

Analysis of demonopolization problems is a necessary component under circumstances of

developing market economy; demonopolization should be brought to and follow privatization.

Each micro-levelled step in economic changes is connected with other factors able to influence

on decision about demonopolization, for instance, severity of capital and real estate markets,

level of import tariffs and convertibility of currency.

Counter arguments of analysis of demonopolization reflect outlines of significance of each

particular case and state based on a unique complexity. Therefore, a uniform prescription or a

formula of demonopolization may not exist. Demonopolization process will be conducted under

circumstances of incomplete information and lack of enough time for assessment of received

information.

The article with those conditions in mind offers analytical frameworks and procedures to

public officials responsible for implementing demonopolization. If these analytical frameworks

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