Econometric Modeling of the Markets Boundaries

Abstract

The relevance of the study is due to the special importance of correctly determining the product boundaries of the cross-border markets of the Eurasian Economic Union (EAEU) in the process of antimonopoly regulation. An erroneous definition of such parameters leads to an incorrect definition of the product, and, as a result, to a narrowing or expansion of the scope and geography of its circulation, an increase or blurring of the shares of entities operating in the markets, a false level of concentration, as well as a distortion of the criteria for delineating the competence of the EEC and national authorities in terms of abuse of dominance. This process can be much more complicated when it comes to goods that are subject to technical regulations, and due to their specificity, there are a significant number of types of goods that are generally similar in some respects, but differ in others. In this regard, within the framework of the study, an attempt was made to assess the possibilities of using certain methods of econometric modeling when establishing product boundaries for cross-border markets for such goods using the example of non-electric initiation systems. The research hypothesis is based on the following assumptions. First: technical regulations and standards not only act as market entry barriers, but also have a decisive influence on the definition of a market within which goods equivalent to each other circulate. Second: when determining the product boundaries of markets operating in the system of technical regulation, along with traditional and normatively fixed approaches, multiple regression models can be used and a correlation between the cost of a product and its characteristics, as well as empirical analysis data that allows segmenting goods according to specific boundaries, can be used.