An approach to pricing in an oligopolistic market using the Lerner index

This paper presents a method for analyzing and modeling oligopolistic market processes based on marginal cost and market share data, as well as an assessment of the elasticity of demand in an oli-gopolistic market. The paper also examines various types of currently existing market structures: from perfect competition to monopoly and oligopoly. Based on a literature review, the theoretical foundations of oli¬gopoly were analyzed, which led to the need to consider the market for homogeneous products in order to analyze the profit maximization problem for specific organizations. The purpose of the work is to develop and substantiate an approach to pricing based on the profit criterion in an oligopolistic market. Materials and Methods. The problem of optimizing enterprise performance based on the profit criterion was solved using the concepts of elasticity and the Lerner index under the assumption of a linear demand curve. The object of the study is price formation processes in an oligopolistic market. The subject of the study is the quantitative relationships between price, marginal costs and elasticity of demand, which determine the level of market power of firms. The financial statements of the organizations were used as the source data. The financial statements of the organizations were used as the source data. The accounting reporting service (financial statements) of the Federal Tax Service of Russia was used as the source of the financial statements of the organizations. A sample of up to 60 thousand organizations with revenues exceeding 1 billion rubles was collected from 2.9 million organizations using big data processing methods. 21 organizations in the analyzed segment were selected from these organizations. Results. A method for determining elasticity as a tool for assessing the reaction of profitability to price changes is proposed. A methodology for calculating the Lerner index based on industry data is developed. The study confirmed the hypothesis that the Lerner index, in conjunction with profit elasticity, can be applied to the approach to profit maximization at enterprises. Conclusion. A method for assessing the elasticity of an oligopolistic market was developed based on the financial statements of organizations. Data on the industry with OKVED2 27.12 “Manufacture of electrical distribution and control equipment” was collected, and calculations of the estimated value of demand elasticity are provided. A number of areas have been identified that require further development.