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

import high-efficiency equipment and technology from other countries, then access to the market

may be easy and in this case demonopolization will not be needed.

Conditions of access to a market affects decisions related to market segmentation in

markets with difficulty of access and where decisions are made on demonopolization of a

supplier. If segmentation of the market for demonopolization purposes causes expected changes

in its structure, this will be subject to less criticism. This pattern for changes in market structure

may be because of large-scale access of new foreign enterprises to the market, or technological

changes leading to intangible depreciation of technological equipment in a short period of time.

3. v. Alternatives to demonopolization

Some industries cover range of a product with certain demand in a relevant limited market

based on economically large scale so that it creates a natural monopoly where only one

enterprise effectively supplies goods for market. Challenge of large production expenses render

operations of small producers unprofitable Such industries may cover local distribution of

electric power and natural gas, as well as some domains of telecommunications. If a large part

of producers are not able to effectively make production due to large production expenses, it is

necessary to seek for other means of restriction of non-effecvtive or non-competitive activity

except non-monpolization. One such mean is privatization and regulation of the monopoly.

Principles of a relevant policy research on these means is not a point of discussion.

4. Fragmentation of monopoly enterprises

When addressing a question on demonopolization of a specific enterprise, the first step of

the analysis is to determine how to distribute assets of the enterprise in horizontal and vertical

sections. The proposed approach covers basic bilateral relations of existing assets of the

enterprise. In order to enjoy an efficiency obtained from the scope and scale of the activity, or

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