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Maria S. Lymar, Natalia S. Pavlova The Impact of Competition on Building Material Prices in Russia on the Example of Ready-Mixed Concrete Markets

DOI: 10.38050/2078-3809-2022-14-3-62-80


The study examines whether the factor of intensity of competition by firms was the reason for the recent price increase in the building materials markets in Russia. The author develops a price estimation model to explain the role of market power factor in ready-mixed concrete and crushed stone regional markets’ prices increase during 2021 by applying “difference in difference” approach. The analysis shows that it wasn’t the factor of market power that was responsible for the recent price increase in the considered building materials markets. Thus, the results based on such imperfect indicators of intensity of competition as number of market participants and market concentration, that are, nevertheless, widely used by the FAS of Russia, provide criticism for the manner of implementing instruments of antitrust policy in Russia, namely the concept of abuse of collective dominance.

Keywords: competition, panel data, building materials markets, abuse of collective dominance.

JEL: K21, С33, L70.

For citation: Lymar, M.S., Pavlova, N.S. The Impact of Competition on Building Material Prices in Russia on the Example of Ready-Mixed Con-crete Markets. Scientific Research of Faculty of Economics. Electronic Journal, vol. 14, no. 3, pp. 62-80. DOI: 10.38050/2078-3809-2022-14-3-62-80.