Abstract:
The purpose of the article is to reveal the essence of the subject-object structure of addictive goods markets. The critical studies of approaches to define goods and bads, addictive goods and products, and also the retrospective analysis of object composition of addiction have been carried out. The boundaries of the classification of goods to addictive are defined, the economic definition of addictive products and their markets is given, and their subjective structure is determined. The study applies the systemic and the evolutionary approaches; the laws of dialectics; the methods of logical, historical, statistical and mathematical analyses and modeling method. The market of addictive goods is the sphere of economic relations between sellers and buyers, where their transactions of purchase and sale are made. From the point of view of demand, the addictive goods are difficult replaceable commodities. Their marginal utility increases with the growth of their consumption in the past, addiction causes the reduction of elasticity, addictive consumption is growing regardless of the price, the demand becomes a factor of income, the marginal rate of substitution of any other product is close to zero, which is accompanied by a degradation of human capital and negative external effects. The specifics of the proposal lies in strict regulation by the state, aggressive marketing, price and product discrimination, the prevalence in the structure of prices of the costs of obtaining the ability to produce and sell, asymmetry and incompleteness of information on product quality, a high level of risk and shady deals.
