The market economy system.

market economy can function as part of several models that have, in some cases quite dissimilar signs.What criteria may determine the corresponding difference?Which models are most common in the concepts of contemporary theorists?

Signs of a market economy

market economy system is usually characterized by the following main features: the predominance of private property in the funds business, freedom of competition, limited government interference in economic processes.This model assumes that companies striving to achieve high profitability, maximize their effectiveness, largely in terms of customer satisfaction.One of the key mechanisms of such phenomena as the market economy system is the free formation of supply and demand.It determines, in particular, the level of prices of goods, and therefore the amount of capital turnover.The selling price of the goods - it is also an indicator that reflects how optimally built supply and demand.

market economy: theory and practice

features described above, which is characterized by a market economy, we set out at the level of theory.In practice, the most optimal balance of supply and demand, as many experts believe, does not occur too often.The markets of many countries that seemingly are characterized by complete freedom in terms of business do not always form an environment where businesses have truly equal opportunities.As part of the national economies of the developed world, according to some experts, can develop models of oligopoly or monopolistic tendencies.

Thus, market pure way or another may have a tendency to become a highly competitive environment of the free pricing system where prices are set major companies, they also affect demand and consumer preferences through advertising, promotion and other resources.Market economic system is not as self-regulating as it may sound in theory.However, the strength of state institutions as much as possible to bring it closer to the ideal model of the properties, which are described in the theoretical concepts.The only question is how to correctly build a system of market regulation.

Stages of development of a market economy

examine options for the state's influence on the free economy, we can try, starting with a study of historical patterns of functioning of the economic system.What could be the formation of periodization of the market?Experts believe that the development of the economy (if we talk about the models that have emerged in developed countries) took place in four main stages - the so-called classical capitalism, the period of mixed economic systems, as well as the socially-oriented market models.

begin with classical capitalism.Historians believe that the system functioned for quite a long period - from the XVII century to the first decades of the twentieth century.The main features of the market of the appropriate type were as follows:

- predominantly private ownership of the main production resources;

- practically free competition, an easy market entry of new players;

- a minimum of impediments to capital flows;

- the predominance of small and medium-sized producers, relatively weakly expressed their consolidation;

- underdevelopment of the labor law;

- high volatility in pricing (under the influence of supply and demand);

- at least in terms of speculative purchase and sale of shares;

State in the economy at this stage hardly intervened.Classic capitalism has long been a fairly successful model.Due to competitive mechanisms, the company actively introduce scientific and technological progress, improve the quality of goods and services.However, by the beginning of XX century classical capitalism no longer meet fully the needs of a developing society.This is mainly concerned aspects of social security.The fact that one of the essential features of the capitalist market - a crisis arising as a result of an imbalance in supply and demand, errors or intentional actions of market players to destabilize some segments of the economy for profit.As a result, in the business arena appeared the arbitrator - the state.It formed the so-called mixed economy.

Its main feature - the significant role of the public sector in the business, as well as active involvement of the authorities in the development of the market.Mainly in those segments, which required investment of considerable resources - transport infrastructure, communication channels, the banking sector.State intervention assumes that the competitive market will still be present and be characterized by freedom of relationships, but within the limits that are defined at the macro level, ie businesses will not set too high or low prices in a monopolistic manner to save on staff salaries or to act in theirinterests which could harm the national economic system.In a mixed economy, businesses have become more willing to join - in companies, trusts, cartels.Began circulating forms of collective ownership of private assets - primarily in the form of shares.

from capitalism - a social orientation

next stage of economic development - the emergence of socially-oriented economic systems.The fact is that if pure capitalism and mixed models of enterprises still dominated by the principle of maximum profit for the business owner, the priority of investment in assets.But over time, market players began to realize that it is more expedient to have priorities other valuables.Such as, for example, social progress and investment in talent.Capital became the derivative part of these components.In the social market economy and to maintain a competitive market.However, the criterion of leadership it became not only the capital, but also the social significance of the company's actions.Relatively speaking, a successful business was regarded as not only one with the higher revenues and profitability, and the one that performed the tangible social role - for example, to create a product that changed people's preferences and make their life easier.

modern economy is the most developed countries of the world, as some experts believe, in general, has the features of "sociality".However, between the economic systems of different countries, there are significant differences due to national characteristics and traditions of business, especially foreign policy.In some states, the economy could have a significant bias towards "pure capitalism", in others - be more like a mixed model, or have a very strong expression of "social".

economic and social order

is believed that the modern economy of developed countries is operative to provide an optimal balance between the priorities of business, government and society.The interaction between these spheres, as a rule, expressed in the ways of solving the problems facing the relevant stakeholders - employers, authorities and citizens.All of them tend to a certain order.Experts identify two main types of it - the economic and social.Consider their features.

economic order - a set of institutions and norms that regulate the function of the economy, for business processes.The main areas of regulation here - the right to property, currency and monetary policy, competition, foreign economic cooperation.The social order - this, in turn, the institutions and rules that affect the state of society as a whole and its separate groups, the relationship between people.The main areas of regulation in this case - the world of work, social assistance, property, housing, environmental law.

Thus, the economic system and social-oriented type combines the priorities of the main actors involved in the development of both economic and social order.In the first case the leading role - for business (with the participation of the regulatory state), in the second - to the state (in the auxiliary function of entrepreneurs).The Company is also subject, dominant in both types of orders.That is why economics is called community-oriented.

about market structures

Despite the significant role of the state in modern economic systems, as well as significant control on his part of compliance with the public interest, the main driving force predetermines growth, is a business.Enterprising individuals determines the introduction of life due to technical progress.Largely business initiatives affect the creation of new jobs, and in some cases even on a successful foreign policy.Without the power of entrepreneurs and the society would be unable to build an efficient and competitive national economy.

power is exercised by the institutions of the state, the society operates within the social.Businesses, in turn, relies on different market structures.What they represent, according to modern theoretical concepts?What are the characteristics of market structures?

begin with the definition of the term.One of the most common is: the market structure - a set of features and characteristics that reflect the characteristics of the economy as a whole or any of its branches in particular.Depending on what exactly is a particular feature pattern defined markets.What are they?Based on the methodological approaches established in the modern Russian economic theory, there are three main models of market: perfect competition, monopoly, oligopoly.Some experts tend to allocate another model.This is the so-called monopolistic competition.

Another definition that is found in the expert community, it involves a slightly different interpretation.In this case, it refers to "the structures of the market" as the characteristics of the elements and actors of the processes that occur in the economy.These may be, for example, the number of sellers, the number of buyers as well as the factors shaping the barriers to entry to any of the segments.

Market structure is a combination of the properties of the economic environment in which businesses operate.This may be, for example, the total number of registered companies in the industry, the industry momentum, the number of potential clients or consumers.Features corresponding structures can influence the balance in the market in terms of supply and demand.The collection of a certain kind of performance can indicate which of the four models of the market at a particular point functions - at the level of the national economy, the region or perhaps a particular locality.But as a rule, some economists have calculated the average set of parameters to determine the properties of the national economic system.

Monopoly

The market is characterized by monopolistic market structures, and its corresponding types?First of all, it is the presence of a fairly narrow group of manufacturers resources, allowing affect the overall situation in the segment of the economy (or at the national level, it in general).Some experts called this kind of tool "market power" held by monopolies - usually a large business or companies.Depending on the degree of involvement in the economy of the authorities, they can be private or public.With regard to the monopolistic competition - a form of the market, complementing the three major, when it is assumed that the business is not included in the structure of "market power" still have a chance for something to affect prices.In practice, this can be traced to the level where the business operates.If it is, relatively speaking, a small grocery store, it can affect the price of some product groups in their area or outside.When it comes to online business, the extent of impact on the selling price of products sold can be expanded to the city or even the region.That is, there is a competition, but it bears the signs of monopoly.The balance on the market there are practically not formed.Although, of course, the policy takes into account the prices of building local demand.At the same time as the number of enterprises in the industry, in the city or in a particular area of ​​his competition and monopolistic market structures, it appropriate, may turn into a different economic model.

Oligopoly

Consider signs of oligopoly.This market structure is sufficiently close to a monopoly.Some experts believe that the second - one of the first forms.In any case, the difference between oligopoly and monopoly there.First form the structure of the market, if you talk about them, meaning elements of economic systems, which are characterized by the frequent occurrence of precedents, which reflect the presence of several key industries and, as a rule, large business structures.That is, when there is a monopoly, mainly a leading player, concentrated in his hands "market power."In an oligopoly may be several.This cooperation between them does not necessarily mean the management of prices can.On the contrary, within the framework of a market structure as oligopoly, competition can be quite severe.As a consequence, the formation of the selling value of the goods - it is free.A striking example - the confrontation in the IT-market giants level Samsung, LG, SONY.If some of these companies are characterized by signs of monopoly, the price of the respective Soup would be dictated by it.But today we have a fairly competitive, as experts believe, the market of electronic devices, the price of the unit which, in recent years even if it grows, it is usually not outpacing inflation.And if not sometimes reduced.

Perfect competition

opposite of monopoly - a perfect competition.When it none of the subjects of the economic system does not have the so-called "market power."At the same time the possibility to consolidate the resources for subsequent sharing of price controls is generally limited.

basic market structures, if we understand them as part of the economic process, characterized by perfect competition in features significantly different from those that are peculiar to monopolies and oligopolies.Next we will look at their relationship for each of the models of economic systems.

comparing market structures

We have studied the concept of market structure.They saw that the interpretation of the term is twofold.First, under the "market structure" may be understood as such a model of the market - a monopoly or, for example, an oligopoly.Secondly, this term may refer to any characteristic of the actors involved in the economic processes.We brought some of the standard options when it comes to modern economic concepts: the number of companies on the market or its individual segment, the number of buyers, as well as barriers to entry for both.

Most importantly, it should be noted - and those other interpretations of the term can be closely connected.How?We will help to understand the mechanism of interaction models, or elements that make up a market structure, the table, which we now compose.