market economy has a complex structure that includes many industrial, financial, commercial and information components that interact with each other on the basis of legal standards of business conduct.
market, in itself, is an organized structure, which includes producers and consumers, buying and selling goods and services.As a result of interaction between the parties are set market prices and produced the best needs of sales.
market structure depends primarily on the number of merchants and consumers who are involved in commodity-money exchange.Their relationship is determined by the nature of relations in the market of supply and demand and produce various models of the market.
essence of the market manifests itself mainly through such a thing as competition.It is the center of gravity in the system of market economy.Competition in the market plays the role of an accelerator of processes and encourage better provision of goods markets.The main market models and their characteristics are given below.
the following main market model.
market of perfect competition (polipoliya).With a large number of independent producers of one kind of goods and the mass of individual consumers goods market structure is such that consumers are able to buy goods from any manufacturer, based on personal preferences.Manufacturers, in turn, are able to sell goods to any buyer, based on its benefits.In such a situation, consumers do not have a special share in the total demand.
polipolii When one seller price changes cause a reaction only among buyers, sellers and not others.In this model, the market is open to all, the price is the value of a given, so participants have to accept it.
Perfect competition determined by such prerequisites: the inability of individual sellers and buyers seriously influence the situation on the market, the lack of barriers to entry into the market of new players, the lack of restrictions in prices, supply and demand, free access to information about the main characteristics of the market.
market of imperfect competition (oligopoly).This market is characterized by a very large number of consumers and only a limited number of manufacturers, which even alone able to meet a significant share of total demand.
In a situation limiting the structure of the market when the great mass of consumers opposed to one manufacturer, the market is transformed into a monopoly.In this model, the monopoly of the market as a salesman appears and manufacturer of the product, which has no substitute products.Monopoly at the expense of acquiring market power and total control over prices.
If the market co-exists quite a large number of manufacturers ready to supply diverse products, it is called the market of monopolistic competition.
Monopolistic competition as a market model is characterized by a large number of manufacturers of similar, but not identical products.Since there is a differentiation products that come into firm against each other through prices, and by an even greater product differentiation.Monopolistic competition is characterized by the heterogeneity of the products on the market, the lack of full transparency in the market and the desire of manufacturers to personalize their products.
special type of imperfect competition (monopsony).This market is characterized by the presence on it the only customer and a large number of independent producers.The consumer can purchase all the offered goods supplied by all manufacturers operating on the market.
relationships between producers and buyers, when a single user corresponds to a single vendor, called a bilateral monopoly and, in fact, generally are not market (competitive) bonds.
