Competition Competition with Private Property Institute Examples. The existence of a private property institution leads to a monopoly based on a rare resource

The concept of institutional matrices interprets institutions, let's call them basic institutions,as deep, historically sustainable basics of social practice, ensuring the reproduction of social structure in different types societies.Basic institutions are historical invariants that allow society to survive, develop and maintain self-sufficiency and integrity in the course of historical evolution, regardless of the will and desire for specific social subjects.

What causes this quality? What determines the stability of the system of basic institutions in x and y-matrices, on which the constancy of these forms is based?

The reason for the existence of two types of institutional matrices consists in the peculiarities of the material and technological environment of certain countries. To explain this phenomenon in the theory of institutional matrices, the thesis is postponed on the determining role of the material and technological environment in the area of \u200b\u200bthe emergence and development of a state or another.

Under internal technological environment Meet "significant to organize production natural conditions, public infrastructure and industries, priority to ensure the vital activity of the population. " As an alternative concepts, "characterizing the different influence of the material technological environment on the nature of institutions, community and noncommunalism are allocated."

« Communality (or noncommunalism) The material medium is not so much internally inherent in it, as a social property, i.e. Manifested in the interaction of society with this environment. In itself, natural conditions or technological methods do not carry alternatively named social properties, they show, express or acquire them in the process of engaging in the economic turnover and social life.

Communality means this property of the material and technological environment, which implies its use as a single unintended system, parts of which cannot be separated without the threat of its decay. The municipality of the material and technological environment implies the continuity of the links between the elements, its representation as a single integer under the general control.

In turn, noncommunalism means technological disunity, the possibility of the isolation of the most important elements of the material infrastructure and the associated possibility of their independent functioning and private use..

Institutional matrix x refers to redistribution (redistribution)economy.

Redistribution (term K. Polania)means traffic material values and services within the framework of general, united property, which objectively requires coordination of economic transactions. Institutions of the economic sphere of institutional matrices

Basic institutions of market economies (y-matrix):

• Institute private property "Determines that persons or organizations owning their property have all the full rights and responsibility for its use and disposal."
• Institute competition - rivalry of private owners with each other in obtaining the necessary production resources and selling results of their activities. "It is the Institute perfect competitionAs Adam Smith and other economists showed, leads to the limit to effective distribution and use deficit resources In market economies. "
• Institute exchange (sale)produced products and services that have the nature of the goods, which ensures the reproduction of market economies. The Institute for Exchange, or Purchase, regulates the relationship between private owners, manufacturers and consumers in such a way that their simple and expanded reproduction was ensured.
• Institute hiring Labor. "Thus, labor relations also have the character of exchange, or sale, as K. Marx wrote, labor. Hired work is a universal institution governing the involvement of public forces to work and ensuring their reproduction in private property. "
• Institute arrived. Profit performs "socially recognized effective criterion, a regulator, through which the activities of separate private farms are correlated on the basis of the whole society<…> The implementation of capital reproduction, or profit, is for the participants of the production by the main motive of actions, feedback signal, evidence that their activities are recognized, appreciated by society, and the continuation opportunities have been created. economic cycle. Thus, the Institute of Profit, together with the Institute for Competition, provides self-regulation of market economies and allows us to judge the level of efficiency of the economic system. "

Basic Institutes of Remedistine Economics (X-Matrix):

• Institute common property. "He determines the specifics of all other institutes of the redistribution economic system. The Common Property Institute means that the owner of the main resources and means of production is recognized as the society as a whole, or latent. This involves the possibility of using the goods produced and consumed by all members of society on the rules established every time and does not imply the boundaries between them in the rights of ownership, as is characteristic of the domination of the institution of private property. Even if the common property is distributed among its useful entities and is fixed for them to perform certain tasks - and otherwise, there can be no increasing complexity of production - their actions are constantly correlated with the interests of society as a whole and among themselves during the inevitable, objectively required required coordination. "
• Institute redistribution (accumulation - coordination - redistribution). "What is the difference between the emission of exchanging? Exchanges are horizontal flows of products and services that have the nature of goods in market economies between separate economic entities, private owners. Exchange implies a profit extracted by participants in transactions. The redistribution means the movement of material values \u200b\u200band services within the framework of a common, united property, which objectively requires coordination of economic transactions. The law of saving transaction costs leads to the fact that the coordination focuses in one body, which begins to perform the functions of the center. ... redistribution as a basic institute of non-union for certain phases, it is a single continuous process of battery-matching relationships. In the process of redistribution, there is an empowering entities with parts of the common property and the rules for its use are established, that is, the distribution and accumulation parameters of the necessary resources and valuables are set. Like any other institution, the redistribution provides for sanctions for the inefficient execution of the function to which it is aimed. If the property received by the economic entity is not effective, not effective, not for its intended purpose, or if there is no damage to public interests, the removal mechanisms are applied, the return of property to the overall order and transmission is then different, more efficient economic entities.
• Institute coordination. Coordination is opposed to competition in market economies, and means correlation of the participants economic activity As part of a single ownership of each other. "The institution of coordination regulates effective use The scarce resources and manufactured goods and services in public interest determines the directions of material flows within the framework of the overall ownership, provides intersectoral proportions, etc. The operation of the institution of coordination ensures the continuity of the functioning of the economic sphere of society, since through it through participants economic activity Get both the necessary production resources and the conditions of its own reproduction. "
• Institute outcome, that is, the nature of bringing to work through the redistribution. "In the finistributive economies, the possibility of using the benefits produced at the facilities is determined by the employment contribution of the economically active population into its functioning and development. This means that the Finistribution Economies has an institution of official labor. Official work involves a historically changing, but maintaining its maintenance of labor accumulation procedure across the public economy and its distribution based on the processes of coordination of the need for the use of labor and the need for its reproduction. "
• Institute proportionality. "For the market, the survival of the economy as such and the subjects acting in it is impossible without the profit of the profit, ensuring their reproduction as market participants, personal consumption and production of the product for use by other members of society. In the conditions of the overall property, the economy may exist only as a proportional economy, when it produced in one part is consumed in another segment. Excessive storage of valuables, as well as their prevaluation, are the threat of violation of the entire production cycle in the conditions of a communal material and technological environment. Therefore, the redistribution inevitably implies the action of the institution of proportionality. On the demand for the proportionality of the production carried out under the conditions of the domination of public property, the theory of socialist reproduction constantly indicated. It is known that in its framework the "law of planned proportional development" was postponed.

· The described institutional complex of five basic institutions constituting the core of market economies - private property, competition, exchange, hired labor and profits.

Comparison of these economic institutions of two matrices is shown in the table.

Functions and maintenance of economic institutions in X- and Y-Economy models

Classic types of monopolism

World economic theory and practices are known at least six main types of monopoly:

To go to modern market economyYou have to overcome great difficulties. They are primarily related to the fact that between the start - the absolute market monopoly - and the finish - developed market, as they say, the distance is a huge size. This can be clearly judged by the table, where the most important features of the starting and finish positions are compared with each other.

A rare resource can be represented by a patent, high level of organization and management of production, quality of resources used, etc.

Enterprise, seeking to win or maintain a monopoly position, can use unscrupulous methods of competitive struggle (a sharp decline in prices at constant costs, discrediting the reputation of competitors, conclusion of contracts that limit competition, etc.) due to their application - monopoly as a result of competition.

Source institutional monopolyis the direct or indirect protection of the enterprise from the state, ranging from direct prohibition to all other enterprises to produce this species Products or in a softer form of state favored by the manufacturer to the detriment of others (for example, licensing, erection of custom barriers). If institutional protection applies to such natural monopolies as transport, municipal farm, communication systems, public monopolies are formed.

Both perfect competition and pure monopoly should be considered as theoretical models, which allow to explain such more common market structures such as monopolistic competition and oligopoly.

Oligopolyit is characterized by the fact that several large suppliers controlling sales are operating on the market. The entrance to such a market and the initiation of competition require major costs. If the products of suppliers of approximately one quality (steel, aluminum production), then such an oligopoly is called an undifferentiated oligopoly. If the quality is different (automotive), then the oligopoly is called differentiated.

On the oligopolistic market, one of the largest suppliers and with the lowest costs of production can be a price leader. Other oligopolists seek to bring their prices in line with the level of the price of the leader in order to preserve their sales volumes. If the leader reduces the price, others do the same thing to not be displaced from the market. If the leader increases the price, other oligopolists can not follow this and then have a chance to increase their sales interests in the aggregate sales volume.

The most negative consequences of the existence of oligopoly may arise due to the conclusion of a monopolistic agreement between oligopolists. Agreements (collusion) are aimed at limiting or eliminating competition between oligopolists. The agreement may concern the magnitude of the products produced, separating the sales market or setting the price level.

Monopolistic competitionit is characterized by the fact that there is ease of entry into the market and even small suppliers can effectively compete with large suppliers (for example, in retail, light industry). Manufacturers supply products having many valid or imaginary differences.

Monopoly, Oligopoly, Monopolistic Competition are special cases imperfect competition.The existence of monoppsies (the situation of the only buyer in the market), Oligopsonia (the situation in the market with a minor number of buyers, who are able to control the demand) also testifies to the presence of imperfect competition in the market.

Imperfect competition is also expressed in the fact that the consumer does not always know the price in which various suppliers sell this products. Therefore, the consumer buys it from the former supplier, even if it is forced to pay a higher price. He gets used to him and can reluctantly change his seller. A significant role is played by such factors as the convenience of the place of purchase, a certain seller's behavior, more attractive product purchased product. This all leads to the fact that in some differences in prices, each seller has its own clientele.

The manufacturer seeks to gain confidence in its products through the use of a brand, external view, advertising, etc. With these ways, he gives its products to some extent a monopoly nature in relation to a certain group of consumers. If the manufacturer wants to drag buyers from other markets, then in competitive struggle, it must make a greater degree of price of its products, at least in the initial period, which would flow out of the conditions of perfect competition. Such a decrease in prices is beneficial if the products are characterized by high price elasticity, which causes a higher relative increase in demand than the relative price reduction.

There are various monopolies control options:

Policy aimed at determining the legal framework of competition;

Policy of regulating market activity monopolies;

The policy of direct leadership of the economic activity of monopolies by the state.

Policies aimed at determining the legal framework for the development of competition,provides control of behavior aimed at establishing a monopoly and the use of monopoly prices. It is represented by three forms of regulation: monitoring agreements, mergers (horizontal, vertical, conglomerating), control over the abuse of monopoly position on the market (monopolistic pricing, restrictive supply contracts). The varieties of this policy include both the prohibition of commercial activities that are not a form of monopolistic practice, but pursued by law (corruption, falsification of goods, industrial espionage, unscrupulous advertising, etc.). In most cases, the implementation of such policies is based on significant obstacles. For example, it is sometimes very difficult to prove that the same actions of market suppliers are the result of the agreement between them, and not a general response to the changed conditions of management on this market. It is also sometimes quite difficult to determine the ratio between positive and negative consequences monopolistic activities before making a decision on its ban.

Monopolist market management policyit is directed not to prevent the occurrence of the monopoly position, but to establish individual rules of conduct for the monopolist in order to limit its power and eliminate adverse effects in placement of resources. This policy is aimed at making a monopolist to behave as if he was in the competitive sector. It is represented by the following forms: Taxation, price level control. Both forms are very gently applied in practice due to the fact that their application requires such a volume of objective information, which is very difficult to receive for each individual case. The negative consequences of such policies can be expressed in the development of a new bureaucracy, the uncertainty of financial implications in taxation (which will fall into the severity of tax), significant costs in carrying out such policies, the need for some cases allocation of subsidies for production.

Privacy policy of the economic activities of monopoly from the statedirected to the enterprises owned by the state (administrative monopoly). Methods of managing administrative enterprises depend on the purpose of their economic activity set by the state (for example, profit maximization, ensuring the conditions of operation to other business entities, etc.). In the case of the use of indirect management methods, administrative enterprises, acquiring the status of market manufacturers, work with less costs than when they are managed by directive methods. However, in both cases, the effectiveness of the management of administrative enterprises, as a rule, is inferior to the effectiveness of private monopolies. This is explained by the action of the reasons for the management nature: the ability of the economic authorities to reflect the prospects for the development of the economy, to adjust the system of economic standards, taking into account the changing economic environment, the desire of enterprises to "quiet life", etc.

Topic 3: Macroeconomic equilibrium and the forms of his violation

Using text and social scientific knowledge, give explanations of the Competition Competition:

a) with the Institute for Private Property;

b) with the Institute for Human Rights and Freedoms;

c) with the effectiveness of law enforcement and judicial system.

Read the text and execute the tasks 21-24.

The originality of competition is that in specific situations, when it is significant, its action cannot be verified, and can only be witnessed by the fact that the market will win when compared with any alternative social mechanisms.

What benefits are rare or what items are good? And what is their rarity or value? This is exactly what is designed to identify competition. Preliminary results of the market process at each individual stage indicate individual search direction. To use knowledge widely scattered in a society with a developed division of labor, it is not enough to rely enough for people who are thoroughly known which specific objectives can be used from their familiar surroundings. What kind of information relative to the diverse goods offered by the market can be of interest, suggest prices for individuals. This means that the market finds the use of personal knowledge and skills that are always unique in one way or another individual combinations and not only based and not even so much on the assimilation of such facts that could be listed and reported at the request of some power.

In the literal sense, the word "economy" is an organization or social device, where someone deliberately places resources in accordance with a single scale of targets. In the market created by the market, there is no such thing: it functions fundamentally otherwise than the actual "economy". It differs in particular by the fact that it does not guarantee compulsory satisfaction at first more important, by the general opinion, needs, and then less important. This lies the main reason why people object to the market. In fact, all socialism is nothing but the requirement to turn the market order into the "economy" in a narrow sense, in which the total priority scale would define which of the various needs are subject to satisfaction, and which is not.

With this socialist idea, the difficulties of the double kind are conjugate. As in any conscious organization, the project itself can reflect only the knowledge of the organizer himself, and all participants of this, understood as a conscious organization, "farms" should be guided in their actions a single hierarchy of the goals that it is subordinated. Accordingly, the spontaneous market order has two advantages. It uses the knowledge of all its members. The goals they serve are the private objectives of individuals in all their diversity and contradictions.

The fact that the high degree of coincidence of expectations with reality is directly depends on the systematic discrepancies with her to understand the functioning of the market order. But the mutual execution of the plans is not the only achievement of the market. It also guarantees that any product will be manufactured by people who can do it with smaller or at least not with high costs than the one who this product Does not produce.

If even in highly developed economic systems Competition is important as a research process, during which the discovers are searching for unused capabilities available in case of success and all other people, then to an even greater extent this is true in relation to undeveloped societies.

(F. A. Von Hayek)

What, according to the author, consists of the attractiveness of "farm", and in what difficulties of its functioning? Using text, specify two manifestations of attractiveness and two difficulties. Relying on social science knowledge, explain the meaning of the concept of "economic competition".

Explanation.

The correct answer must contain the following items:

1) appearance of attractiveness:

No spontaneity;

Guarantees compulsory satisfaction first more important, as long as the need, and then less important;

Or the total priority scale determines which of the various needs are subject to satisfaction, and which - no;

2) difficulties:

Reflects only the position and interests of the "organizer" (states, planned bodies, etc.);

Or there is no mutual execution of plans for economic activities;

Ineffectiveness (it also does not guarantee that any product will be manufactured by people who can do it with smaller or at least not with higher costs than the one who does not produce this product).

3) the meaning of the concept, for example, is explained:

Economic Competition - Rivalry of Subjects market relations For the best conditions and results of commercial activities.

The elements of the response can be given in other, similar in the meaning of the wording

Explanation.

The correct answer must contain functions and related examples:

1) the determination of the value of economic benefits (for example, representatives of the workers' professions are most in demand in the labor market, and specialists with legal and economic education It's hard to find a job);

2) Search for unused features (for example, an entrepreneur analyzed the fast food service market in the city of M., found that most enterprises offer dishes of American, Chinese and Italian cuisine, and opened a network of eateries with Russian dishes).

Other examples can be given

Explanation.

The correct answer should be given an explanation for each item, for example:

a) market participants compete for ownership of the most valued economic benefits; risk your property in the desire to make a profit;

b) Competition is impossible without freedom of economic decisions, disposal of their property and labor abilities, the right to obtain the necessary information;

c) freedom of competition needs legal protection, in addition, competition often generates disputes of economic entities, the permission of which requires the effective work of law enforcement and judicial authorities.

Other explanations may be given

Property - Civil Legal Institute, representing a set of legal norms regulating economic relations Property methods of civil law.

Property - The property itself belonging to any subject on the right of ownership.

Property relationship -these are an objective relationship between people about the assignment, possession, orders and use of benefits (means of production and resources).

Depending on whether resources are located in whose hands, property acts in different forms: personal, private, state, mixed, public.

Personal property - We own material benefits, are managed and enjoy individuals in their personal interests. For example, a car, land plot, house, money. The source of personal property is income in the form wages, profits, percent, dividends, rent.

Private property - Resources own and manage individuals in order to profit.

State ownership - arises as a result of state intervention in a private economy.

Mixed Property - interaction of private and state ownership.

Public property - Resources belong to the whole people, society as a whole.

Property -this is a historically definite form of assigning material benefits in the process of their production, exchange and consumption.

The main forms of ownership of the Russian Federation:

- Private property (property of citizens and legal entities) It is an individual ownership of land, buildings, equipment, labor, capital (factors of production) with the possibility of their alienation and the right of transfer by inheritance.

Private property is based on commodity production and market economy. It provides economic freedom, independence economic behavior and economic responsibility of the manufacturer.

Historically, private property is developing, its shapes change. Initially, individual private property originated, i.e. Personal (private) possession of all enterprise. IN modern conditions Along with the individual private property, the Active development received joint-stock owned, where personal ownership of capital is replaced by collective condominium.

- state propertyin the Russian Federation, property belonging to the right of ownership of the Russian Federation (Federal property), and property belonging to the right of ownership to the subjects of the Russians, the region, regions, cities of federal significance, the autonomous region, autonomous districts (the ownership of the subject of the Russian Federation).

- Municipal property The RF is the property belonging to the right of ownership of urban and rural settlements.

For man's self-expression in a market economy, its implementation economic freedom There is not enough one form of ownership, it is necessary to a variety of its species, therefore, in a modern market economy, in addition to the forms of ownership, there are cooperative and mixed property.

The state must support all forms of ownership, protect the interests of all its subjects, creating equal terms of economic management for them with the help of economic, administrative and legal leverage.

Competition is the struggle for the most profitable terms Production and sale of goods and services. In different industries, the number of merchandise goods may vary from one to very important.

Depending on the number of sellers in the market and on what kind of relations are between them, and another number of factors distinguish the main types of competition: perfect competition, monopolistic competition, oligopoly, monopoly.

Perfect competition - the market on which many small firms produce the same products and are not able to control prices for it. The number of buyers in the same market is also infinitely great. None of the market participants has more information than everyone else. This is a theoretical model; In real life, there are almost no such markets on which such conditions would be fully implemented. But some markets are close to competing. These are the markets of agricultural products (for example, wheat market, corn market); fish market; stock marketWhere securities are sold.

It is possible to raise the price of the goods only on condition that your products are superior to the products of competitors. The process of creating unique products other than the analogs is called differentiating. There are many ways to differentiate products.

First of all, it is improved product quality. The company can invite designer, artist, technologist, programmer and other specialists who will conduct research work (NIR) and will find ways to improve the quality, reliability, durability of your product.

Another method of product differentiation is to improve the quality of customer service.

If you decide to make a big purchase, for example, to buy a TV, you can hardly go to the market household appliances. Why? You need to be sure that your TV will be provided with warranty service, and for this purpose there should be a store stamp in the passport. For these buyers are also ready to pay a higher price.

The advantage of those firms are the location of which are more convenient for users. The cafe next to the university will always be in demand, gas station In a convenient location in the presence of the same gasoline brands will be enjoyed in high demand, the "basement" in your home you will visit more often, even if some products could be cheaper in other places.

If the firm managed to achieve some advantage compared to competitors, she needs to advertise, let it be inexpensive so that the sweepers are informed about the uniqueness of your suggestions. So the market for monopolistic competition is formed.

Monopolistic competition is a market where a large number of minor firms produce similar products and partly have the ability to control prices for it.

Barriers to entry such a market may occur since not every competitor is able to provide the same benefits for its product, but these barriers are quite easily overcome. There are many sellers in the monopolistic competition market. Examples of monopolistic competition markets can be local shops retail: Floral and souvenir kiosks, stationery, books, food "basements", bakery, etc. In real life, this is the most common type of competition.

Oligopoly is a market that belongs to several large firms.

In terms of oligopoly, the number of firms are small, since there are high barriers to entry into the industry. Barriers can be:

A huge amount of starting capital required for the production of this product;

The need for a license to produce goods or services;

Trade secret;

For example, in production mobile phone It is necessary to buy right to fifty patents.

Oligopolies are also the computer market, perfume market, car market, oil market. In such markets, the price competition is less if the company will lower the price, then the rest will also be reduced, as a result, all companies will reduce income. The prices of goods at oligopoly are established on the principle of price leadership, the recognized leader of this industry establishes its prices, the remaining firms follow them.

In the market of oligopoly, competition is maintained around the consumer properties of goods. High quality goods must be accompanied by appropriate marketing activities, primarily advertising. In the conditions of the oligopoly firms spend huge funds for advertising. Almost all the costly advertising on television, on the radio, on transport, etc. - is advertising oligopolies.

Monopolist possesses the largest market power. Monopoly is the market on which there is a single seller of a unique (not having a substitute) product. The monopoly is unprofitable to consumers: the monopolist is not interested in improving the quality of its products, in a variety of assortment, it has the ability to set overestimated prices. To prevent the formation of new monopolies, the state conducts antitrust policy.

Why are a number of operating monopolies are legal, legal? The fact is that in a number of industries, competition can harm public interests, causing additional unjustified costs. Imagine a subway where every line is an independent enterprise. Or gas supply at home when each apartment leads to itself pipes from different suppliers. Such competition will only increase our costs. In these cases, the state admits natural monopolies. Natural monopoly is a firm that can produce goods and services with less costs than several firms. Natural monopolies are utilities: water supply, electric and heat supply, gas supply. Unique natural conditions may also be a condition for creating a natural monopoly, for example: a healing source, a unique resort, etc.

Other legal monopolies in Russia are railway transportation, metro, city telephone services.

In the definition of the term "monopoly" two substantial points: the seller is the only thing, and the product is unique. If the goods have substitutes, it is no longer a monopoly. As for the input barriers to the monopoly, then they are not just high: the input is blocked. Using the market power, the monopolist itself establishes monopole-high prices (price-maker). However, the state limits the prices and tariffs of the monopolist. And this is not the only limitation.

Advertising a monopolist is not needed, its product is unique, there are no substitutes, and buyers will be forced to buy this product. But monopolist through funds mass media (Media) supports public relations - performs PR (Publick Relations - PR).

From the point of view of public interest, the monopoly has disadvantages, and advantages. So, the costs of natural monopolies are lower than would be in the conditions of other market structures, but these low costs lead, as a rule, not to low prices, and to the increase in the profits of monopolists. Further, only large firms can organize powerful research centers, create new products and technologies. But monopolists are not interested in distributing innovation, while maintaining their monopolistic position.

There is another kind of imperfect competition - monopasia. MONOPSONIY is such a type of market structure at which the monopolist is not a seller, but a buyer. In this case, the buyer is already getting market power, it has the ability to undertake the price and make a profit due to the loss of part of income sellers. The only buyer may be, for example, the state, if we are talking about the sale of a submarine or rocket. Montopsonia is also manifested in the market of agricultural products when individual minor farmers are forced to pass their products to the purchaser at low priced prices. Montopsonia is possible on the labor market if the only company hires workers at low payments rates.

The state conducts anti-monopoly policy to promote competition, the curb of unfair competition, restricting monopolistic activities. The state also protects the interests of consumers. So, in Russia the following laws are valid:

Constitution of the Russian Federation, article 34;

the federal law "On the protection of competition";

Federal Law "On natural monopolies»;

Federal Law "On Consumer Rights Protection".