Intermediary Is Not What You Thought About (Lessons for Economic Policy)

Abstract

This study illustrates the dangers of incorrect use of terminology when classifying commercial practice. The focus of the research is the term “intermediary” associated with a fairly narrow functionality of the relevant company and even negative economic and social effects. The use of this term in antitrust investigations without conducting analysis of economic activity of the entity may result in erroneous normative conclusions. The study is based on the results of theoretical studies in the field of the New institutional economics and Project management. In this article the authors analyze the range of issues that are in the area of responsibility of the organization-manager of a complex capital-intensive project. The analysis illustrates that qualification of any commercial practice without making deep economic analysis and basing just on the terminology associated with negative socio-economic effects, is hazardous as it may lead to erroneous normative conclusions.