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Forms of Functioning of the Modern Market of Addictive Goods Market

Forms of Functioning of the Modern Market of Addictive Goods Market

Journal of Economic Regulation, , Vol. 8 (no. 2),

The classification of forms of markets for addictive goods was made according to the criterion of exchange (absent, emerging, free, oligopolistic, monopolistic, monopoly). There were systematized approaches to argument for the state monopolization of the markets. Reducing the supply, increasing prices, reducing the influence of the motive of private profit are crucial. There was made the classification and analysis of prevailing forms of state markets for addictive goods in the international practice. They are: state monopolistic, competitive, prohibitionists, medical, antiprohibitionists mixed. Based on this there were marked modern features of their state regulation due to the consumer culture, religious prohibitions, the effectiveness of measures in demand reducing, diametrically different approaches to new markets, international split in the prohibition of the drug market. Domestic specifics associated with skimping on experience of regulation of the alcoholic market in a similar pattern of consumption in the Nordic countries, inadequate implementation capacity of state regulation of demand for tobacco products, with the creation of barriers to the development of gambling and new markets for addictive goods, with a veto on the liberalization of the drug market. Based on a comprehensive assessment of the market potential of business entities in specific markets there were offered socially appropriate forms of their states: in the markets of gambling and drugs a combination of the policy of prohibition and monopoly-oligopolistic proposals, in oligopolistic markets tobacco products and energy drinks the monopoly, in the markets of alcoholic products the differentiated approach.

Keywords: addictive goods; markets of addictive goods; state regulation; forms of the market conditions; analysis of market potential

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