SPECIFFCS OF STATE REGULATION OF NATURAL MONOPOLIES (A CASE STUDY OF THE RAILWAY SNDUSTRY)
DOI:
https://doi.org/10.15330/apred.1.22.260-275Keywords:
natural monopoly, state regulation, railway transport, monopoly position, antimonopoly regulation, competitionAbstract
Natural monopolies exist and play a significant role in any economic system, as they possess substantial market power and are of great public importance. The existence of natural monopolies stems from an objective factor: the fact that the demand for a particular good or service is best met by one or a few enterprises. This article examines the specifics of state regulation of natural monopolies, using the railway industry as a case study. The theoretical and methodological foundation of the study comprises the fundamental concepts governing the operation of natural monopolies and the primary methods of state antitrust regulation applied to them. The research draws upon Ukrainian legal acts, European Union directives, and the scholarly works of domestic and foreign experts. In addition, the official annual reports of the Anti-Monopoly Committee of Ukraine were analyzed. To determine the economic nature of natural monopolies and the instruments of state regulation, the following methods were employed: the systems-structural method, statistical and economic analysis, as well as comparative-analytical, empirical, graphical, and tabular methods. The characteristics of natural monopolies have been identified, and the primary methods and instruments of state regulation have been outlined. To prevent the abuse of a dominant position and protect consumer interests, the state should employ a comprehensive approach combining tariff regulation, control over infrastructure access, the establishment of quality standards, and the like. These methods are implemented through regulatory instruments. The situation in the freight and passenger transportation market has been analyzed. An analysis was conducted of the activities of the Anti-Monopoly Committee of Ukraine regarding railway transport and the markets adjacent to JSC Ukrzaliznytsia. It has been established that the current need for reform and the development of transport operations entail the gradual integration of Ukraine’s railway sector into European and global transport networks. Models for railway operations have been proposed. Implementing European regulatory principles is crucial for achieving the comprehensive modernization of this sector.
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