Page 8 - Azerbaijan State University of Economics

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

stores across 200 km; and limited market of a food store in the southern part of a small town

incorporates stores in the northern part of the town.

The first step of analysis in this paragraph is to define limited markets where influence of

structure of an enterprise on competition is considerable. The limited market is characterized by

two significant dimensions – goods and their geography. Of course, the initial dimension is a

choice of goods (and services) sold by the enterprise, as well as places of their production. A

limited market for each product is complemented by identical products and their substitutes

considered by the buyer and which are closer to the relevant product. Each product market

matches with a relevant geographic market by adding settlements in other areas of a region to the

location of the manufacturing enterprise. Products in these settlements may be alternative for

customers in relation to the products of the enterprise.

In limited product market, any independent firm selling products from a point located in a

relevant geographic area offers alternatives or substitutes of products to buyers of the enterprise.

By doing so, the firm acts as a rival of the enterprise, or on the contrary, companies themselves

and goods of which are located outside the limited market of the enterprise do not offer accepted

alternatives to the buyers of the enterprise and so, such an enterprise does not function as an

active competition source for the enterprise.

Now, we can start choice of goods, to discover limited markets with a particular area,

determine a place for offering goods produced by the enterprise. Then we can proceed with

determination of relatively less organized but significant limited markets. One category of these

markets covers by-products (goods) currently not being sold to customers, consumed by the

enterprise itself, but meeting requirements when offered in the market. For instance, the

enterprise may possess and control over a park of trucks/lorries for transporting only

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