THE ROLE OF THE STATE IN SHAPING THE MARKET STRUCTURE AND COMPETITION

Ovaj završni rad istražuje ulogu države u oblikovanju tržišne strukture i konkurencije. U radu se predstavlja konceptualni okvir tržišne strukture i konkurencije, uključujući različite vrste tržišnih struktura kao što su savršena konkurencija, monopolistička konkurencija, oligopol i monopol. Također, ispituju se različite teorijske perspektive o ulozi države u oblikovanju tržišne strukture i konkurencije kao i učinak državne intervencije na strukturu tržišta i konkurenciju. U radu je otkriveno kako država ima složenu i višestruku ulogu u održavanju pravednog i konkurentnog tržišta. Putem regulatornih okvira, antimonopolskih politika i zakona o tržišnom natjecanju, država ima moć spriječiti monopolističke prakse, promicati učinkovitost tržišta i zaštititi in terese potrošača. Praktični dio rada istražuje ključnu ulogu države u oblikovanju tržišne strukture i konkurencije kroz privatizaciju. Različiti modeli privatizacije mogu imati dalekosežne posljedice na tržišnu dinamiku, uključujući koncentraciju tržišta, ulazne prepreke i ukupnu konkurentnost industrije. Odabir modela privatizacije treba uskladiti sa specifičnim ciljevima i kontekstom države, uzimajući u obzir čimbenike kao što su metode vrednovanja imovine i potencijalne distorzije uzrokovane niskim cijenama ili koncentracijom vlasništva. Analizirajući primjer Republike Hrvatske, nedostatak konkretnih strateških ciljeva, politički utjecaj, nedovoljan naglasak na tržišne mehanizme, odsutnost transparentnosti i povjerenja te česte promjene zakonske regulative su glavni čimbenici neuspjeha privatizacije. Kombinacija ovih elemenata ozbiljno je ograničila uspješnost privatizacije i usporila ekonomski napredak zemlje. Sveukupno, država igra ključnu ulogu u oblikovanju tržišne strukture i konkurencije. Uz pažljivo uvažavanje javnog interesa, transparentnost i prilagodljivost, država može učinkovito upravljati složenošću tržišta i stvoriti uvjete za živo i konkurentno gospodarstvo.This thesis investigates the role of the state in shaping market structure and competition. The thesis at hand presents a conceptual framework of market structure and competition, including different types of market structures such as perfect competition, monopolistic competition, oligopoly, and monopoly. Also, different theoretical perspectives on the role of the state in shaping market structure and competition are examined, as well as the effect of state intervention on market structure and competition. The thesis revealed that the state has a complex and multiple role in maintaining a fair and competitive market. Through regulatory frameworks, antitrust policies, and competition laws, the state has the power to prevent monopolistic practices, promote market efficiency, and protect consumer interests. This role should be driven by transparency, accountability, and the public interest. The practical part of the work investigates the key role of the state in shaping market structure and competition through privatization. Different models of privatization can have far-reaching consequences for market dynamics, including market concentration, entry barriers, and overall industry competitiveness. The state must balance its goals of promoting efficiency, innovation, and responsibility with the need to encourage fair market competition and prevent the creation of monopolistic structures. The choice of privatization model should be aligned with the specific goals and context of the state, taking into account factors such as asset valuation methods and potential distortions caused by low prices or concentration of ownership. Analyzing the example of the Republic of Croatia, the lack of specific strategic goals, political influence, insufficient emphasis on market mechanisms, lack of transparency and trust, along with frequent changes in legal regulations, are the main factors behind the failure of privatization. The combination of these elements significantly constrained the success of privatization and slowed down the country's economic progress. Overall, the state plays a key role in shaping market structure and competition. With careful consideration of the public interest, transparency, and adaptability, the state can effectively manage the complexity of the market and create the conditions for a vibrant and competitive economy