2016, №2

Standards and norms as tools of protectionism: the problem of defining the boundaries of market (on example of civil aircraft industry)


The article discusses the use of environmental standards and norms as tools of protectionism in contemporary globalized economy, where the direct application of protectionist measures is limited. The tightening of such standards and development of the necessary technologies can be a means to raise the level of environmental protection and may also act as a competitive tool increasing the controlled share of the market. Manufacturers can choose a particular strategy of behaviour in the «standards’ race» reasonably, balancing the cost of improving ecological purity of its products with the change of profit due to the possible exclusion of competitors. Moreover, in some industries arise the problem of defining the boundaries of markets that are controlled by different countries, establishing standards and norms. Even if products are sold on the market of this country, it may be applied, including, and within area of other standards and norms. This specific problem is considered on the example of civil aviation. The article presents a mathematical model, in which using the methods of Queuing theory we estimate the optimal number of homogeneous fleet of “universal”aircraft that meet the most stringent world standards, as well as the fleet, which includes both universal planes and planes «for internal use». Using the developed model we analyze the optimal structure of mixed fleet of aircraft depending on the ratio of international and domestic flights. We also estimate «fair» price of planes «for internal use», which do not meet international standards, as a greatest price under which the economic feasibility of such planes’ purchase still remains. We analyze the influence of the scale of airlines (as potential buyers) on the attractiveness of products that meet more stringent standards. It is shown that the loss of revenue for the manufacturer of products that do not meet stricter standards, increase with the decrease of the characteristic scale of the airline in the country. This study allows to estimate the losses of the losers in the «standards’ race». The proposed methods can be extended to other high-tech industry without loss of generality.

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Ekaterina V. Varyukhina — Cand. Sci. (Econ.),  Senior Research Associate, The National Research Center “Zhukovsky Institute” (Zhukovsky, Russian Federation; e-mail: e.varyukhina@yandex.ru).

Vladislav V. Klochkov — Dr. Sci. (Econ.),  Lead Research Associate, Laboratory of Economic Dynamics and Innovation Management, V. A. Trapeznikov Institute of Control Sciences of Russian Academy of Sciences (Moscow, Russian Federation; e-mail: vlad_klochkov@mail.ru).