The imbalance of supply and demand as an integral indicator, characterizing the objective nature of the phenomenon of competition

• Main Author: Владимир Викторович Осипов
• Format: Article
• Language: English
• Published: PC Technology Center 2015-09-01
• Series: Tehnologìčnij Audit ta Rezervi Virobnictva
• Subjects: functional-target approach; economy; competition; balance between supply and demand; "the Golden rule of competition"
• Online Access: http://journals.uran.ua/tarp/article/view/51363

This article shows the imperfection of the classical theory of competition and the real possibility of their improvement. The aim of this work is to develop a conceptual model of the materialist nature of the competition for use as a working tool in economic science and practice. Non-trivial task was solved by a new, little-known methodological tool – functional-target approach. As a result of this work, which continues a number of other publications of the author, it is developed the new concept of the essence of competition based on balance between demand and supply. It is shown the inefficiency of the classic classification of markets and the competitive relationship (in the range from monopoly to perfect competition), which is based on counting the number of market participants. The possibility of quantitative measurements of competition is shown. It is confirmed that competition is harmful phenomenon. It is confirmed the effectiveness of the new methodological tool – functional-target approach and accumulated experience of its application. The results can be used: in the design of economic systems of different levels and purposes, with the operational management of micro and macroeconomics, in predicting and planning of economic activity, as well as to optimize the use of available resources and the improvement of economic theory. The proposed interpretation of the theoretical foundations of competition provides a more objective understanding of the materialistic nature of the competition, as harmful phenomenon. It provides an alternative to inefficient classification of the types of competitive relations, based on counting the number of market participants, and improves the efficiency of use of available resources.