Market competition in the modern economy. Abstract: Competition Her place and role in the modern market economy Competition in the economy Society

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Competition (Lat. Concurrere - compete) - rivalry between participants of the market economy for better conditions Production, purchase and sale of goods. Such an inevitable collision is generated by objective conditions: the complete economic separation of each market entity, its full dependence on economic situation and confrontation with other applicants for the greatest income.

The struggle of private goods owners for economic survival and prosperity is the law of the market.

The essence of competition is manifested in the fact that it is. On the one hand, it creates such conditions for which the buyer in the market has a great many opportunities for the purchase of goods, and the seller is for their implementation. On the other hand, two parties are involved in the exchange, any of which makes its interest above the interest of the partner. As a result, the seller, and the buyer at the conclusion of the agreement should go to mutual compromise when determining the price, otherwise the agreement will not take place, and each of them will incur damages.

The indispensable condition for competition is the independence of the subjects of the market relations from certain "higher" and external "forces. This independence is manifested, firstly, to independently decide on the production or purchase of goods or services; secondly, in freedom of selection of market partners. In The competition process of economic entities as if mutually control each other. Competition also has an important tool for regulating the proportions of social production in the market conditions.

Allocate the following competition functions:

identification or establishment of the market value of the goods;

alignment of individual costs and the distribution of profits depending on the various labor costs;

regulation of overflow means between industries and production.

There are several types of competition. Consider the classification of species of market competition for a number of signs.

Types of competition in scale

The following types are distinguished on the scale of development:

individual (one participant of the market seeks to take its place under the sun - choose the best conditions for the sale of goods and services);

local (among products of products of some territory);

sectoral (in one of the sectors of the market there is a struggle for obtaining the greatest income);

inter-sectoral (rivalry of representatives of various sectors of the market for attracting buyers to their side in order to extract more income);

national (competition of domestic products in the country within a given country);

global (struggle enterprises, business associations and states of different countries in the global market).

By the nature of development, competition is divided into free and regulated. Also, the competition is divided into price and insensitive.

Price competition occurs, as a rule, by artificially hampering prices for this product.

Independent competition is carried out mainly by improving the quality of products, production technology, innovation and nanotechnology, facilitation and branding and conditions for its sale, "servicing" sales.

Types of Competition Depending on the implementation of the prerequisites of the market equilibrium

You can allocate perfect and imperfect competition.

Perfect competition- Competition based on the implementation of prerequisites for competitive equilibrium, to which the following can be attributed: the presence of many independent manufacturers and consumers: the possibility of free trade factors; independence of business entities; homogeneity, comparability of products; The availability of information about the market.

Imperfect competition - Competition based on violations of competitive equilibrium prerequisites. Imperfect competition has characteristics: section of the market between several large firms or full domination: limited independence of enterprises; Differentiation of products and monitoring of market segments.

Types of Competition Depending on the ratio of supply and demand (goods, services)

The following types of competition can be distinguished (varieties of perfect and imperfect competition):

oligopolistic:
monopolistic.

Net competition is a grant of competition and refers to the form of perfect competition. The key characteristics of the clean competition market are: a large number of buyers and vendors who do not have sufficient power to affect prices; undifferentiated.

Oligopolistic competition is a competition relating to the imperfection. The key characteristics of the market of oligopolistic competition are: a minor number of competitors who create a strong relationship; Large market force: the force of a reactive position, measured by the elasticity of the reactions of the company on the actions of competitors; Similarity of goods and limited amount of their sizes.

Monopolistic competition is a competition that is imperfect. The main characteristics of the monopolistic competition market: the numerous of competitors and the balance of their forces; Differentiality

Types of Competition Depending on the relationship between business entities about the application of capital in the field of production or sales

There are internal and inter-sectoral types of competition.

Intra-Color competition is competition between industry entities for more profitable terms Production and sales of products, getting superbid. In-vulture competition is the source point in the competition mechanism. The main functions of intra-industry competition:

the possibility of establishing a public, market value of goods and a market equilibrium price;

stimulation of scientific and technological progress;

economic coercion to improve production efficiency;

identification of weak, less organized manufacturers;

restriction of economic government leaders.

Inter-sectoral competition is a competition between entrepreneurs of various industries for a more profitable capital application based on the redistribution of profits. The emergence of intersectoral competition is based on unequal production conditions (various capital structure and speed of its turnover, fluctuation of market prices), leading to different rate of profit.

The main functions of intersectoral competition:

the possibility of modernizing industries, as new enterprises are created on a progressive scientific and technical basis:

strengthening intensification, growth of production efficiency;

optimization of sectoral proportions, structural restructuring of the economy.

Types of competition in accordance with the need for the basis of the goods

You can select horizontal and vertical types of competition.

Horizontal competition is competition between manufacturers of the same product. It is a kind of intra-industry competition, i.e. Competition regarding the best production of functional properties and product parameters.

Vertical competition is a competition between manufacturers of different goods that can satisfy the same customer's need. For example, using a TV can satisfy the need to receive information, leisure, learning, etc.

Types of Competition Depending on the ratio of supply and suggestions for a specific product

The following types of competition are distinguished, which are varieties of intra-industry competition: Competition of merchant goods and competition of buyers of goods.

The higher the degree of competition of sellers, the lower the degree of competition of buyers and vice versa. The vectors of these two tendencies are opposed to the opposite, and their exposure to society is the same, therefore there is a certain equilibrium between them. In the interaction of the curves of supply and supply, the period of relative equilibrium occurs, which has three phases: short-term. Middle and long. With short-term equilibrium, the price is determined by demand. With the elongation of the time period, the price is already determined by the cost, i.e. costs.

26. Competition

Competition - (from Lat. Competimate) - Competition on the market between sellers for receiving greater profits. Three elements that are necessary for the existence of a market economy: competition, freedom of choice and private (non-state) property. Competition is inevitable, as each manufacturer or mediator seeks to sell in the market as much product as possible to obtain maximum profits.

Types of Competition:perfect and imperfect.

Perfect (free) competition - Competition in which the price of goods develops depending on the demand and supply of this product. The price depends on the behavior of sellers and buyers. The conditions necessary for free competition: a lot of buyers and sellers in the market, the identity of goods and services in all sellers, the lack of control over the cost of goods and services (the price of the buyer with the seller is negotiated), freedom of visiting the market by sellers and buyers, freedom of access to information. Example of free competition: agricultural markets.

Imperfect Competition - Competition in which one manufacturer preigns on the market, who seeks to independently install prices for goods. The features of imperfect competition: the domination of one manufacturer, the establishment of high prices for goods, strict methods of combating competitors.

Types of imperfect competition: monopolies and oligopolies.

Monopoly - (from Mono - one, poly - own) - the domination of one large manufacturer in the market:

natural monopolyprotected by law from competition, as it has benefits and sells irreparable resources (for example, RAO Gazprom - GAZ, RAO UES - electricity);

artificial (illegal) monopoly - Credit of enterprises to obtain maximum profits. To this end, monopolists agree on the overestimation of the price by all sellers of products. Buyer, without having another exit, is forced to buy goods at overpriced prices. Forms of artificial monopolies: cartel (collusion on production issues, sales of goods, employment and collusion about price level), syndicate (association for joint sales of goods), Trust (full association of enterprises).

Oligopoly - domination in the market of several major producers (from 3 to 5). Examples of oligopoly can be found in the automotive industry, production household appliances and computers.

Competition protection policy.The state is committed to protecting free competition and limit the expansion of imperfect competition. The government publishes antitrust laws, explores the market, fighting artificial (illegal) monopolies, supports natural monopolies, controls prices and product quality. The legislation establishes the maximum prices for certain types of goods (services). The state develops and strengthens market structures and small enterprises (small business).

Keywords

Competition / Perfect competition / Imperfect Competition / Monopoly / Monopoly power / Intra-Color competition / Inter-sectoral competition / UNFAIR COMPETITION

annotation scientific article on economics and business, author of scientific work - Kazhuro N.Ya.

The essence of competition is shown as an objective pattern of development of commodity-based production, based on private ownership of the means of production and commercial exchange. Shows economic foundation Market economy (private property), which generates the appropriate purpose of production. Such a goal is maximalizing profits and minimizing the costs of market subjects. Therefore, the struggle for the most favorable conditions for the production and sale of goods in such conditions is inevitable, it acts on the surface of society with a developed market economy as competition. Competition is considered not as an exogenous factor affecting the market economic system From outside, but as an objective phenomenon inherent in a market management system as such, which is due to the economic separation of individual producers. Being an important engine of a market economy, competition does not establish its laws, but acts only as a "performer" of data, internally inherent in the commodity production of laws and, above all, the law maximizing the profit, which determines the purpose and driving motive of business entities in the economy. In a market economy, competition plays a conflicting role. On the one hand, it causes manufacturers to constantly strive to reduce costs for increasing profits. As a result, productivity increases, production costs are reduced, and the company gets the opportunity to reduce retail prices for their products. Consequently, increasing production efficiency, competition acts as a potential factor in lower prices. On the other hand, in conditions imperfect competition Sellers have more freedom in price assignment, as they sell their products in monopolistic competition or oligopoly. This is the main weakness market system farms.

Competition As Maket Mechanism

The ESSENCE OF A COMPETTION OF THE COMMODITIES PRODUCTION BASED ON PRIVATE OWNER-SHIP OF THE MEANS OF PRODUCTION AND COMMODITY Exchange Has Been Revealed in The Paper. The Paper Presents An Economic Basis of Market Economy (Private Ownership) Which Generates a correSponding Production Objective. Such Purpose Is a Maximization of Profit and A Minimization of Market Subject Expenses. Therefore, a Struggle for the most FAVOURABLE CONDITIONS ON COMMODITY PRODUTION AND SALES IS INEVITABLE IN SUCH SITUATION. The Struggle is Considered in The Community with Developed Market Economy As A Competition. The Competition IS Regarded Not As An An Exogenic Factor Exerating Its Influence On Market Economic System from the Outside, But As An Objective Phenomenon Which Is Inherent to Management Market System in Itself. Such Treatment is substantiated by Economic Disintegration Of Individual Commodity Producers. Being an important engine of market economy, the competition does not establish its laws, and its role is to be an executive of data which are internally inherent in commodity production laws and firstly it concerns a profit maximization law which defines a purpose and guiding motif of Economic Entities in the Given Economy. The Competition Plays a ContraDictory Role Under Conditions of Market Economy. On the One Hand, It Makes Manufacturers Constantly to Aspire to Expense Reduction for the Sake Of Profit Increase. This Has Resulted in Labour Productivity Increase, Production Cost Decrease And A Company Receive An Opportunity to Reduce Retail Price For Its Products. Consequently, The Competition ACTS AS A POTENTIAL FACTOR FOR LOWERING OF PRICES WHILE INCREASING PRODUCTION EFFICIENCY. On The Other Hand, Sellers Have More Freedom In Price Fixing Under Conditions of Imperfect Competition Asia Sell Their Products Under the Conditions of a Monopolistic Competition or An Oligopoly. This Is The Main Weakest Point of The Market Economy System.

Federal Agency for Education

State educational institution

higher professional education

"Omsk State Technical University"

Department: Communication and Information Security

Abstract for the discipline "Economics"

Topic: Competition Her place and role in modern market economy

Is done by a student:

Kuzyukov Viktor Vasilyevich

Group: SP-318 (210402)

Option: No. 10

Checked the teacher:

Omsk 2011

Introduction

1. Types of competition

2. Competition methods: price and non-price.

Conclusion

Bibliographic list

Introduction

If you consider what the term "competition" is indicated by the general definition Will sound like:

Competition (Lat. Concurrentia, from Lat. Concurro - run away, come across) -bability, rivalry in any area.

Competition exists in many areas in each area, but not excluding economy, it cannot be limited to the definition, so I will give even more detailed and close to the economy:

Competition is the center of gravity of the entire system of market economy, the type of relationship between manufacturers about the establishment of prices and volumes of goods supply on the market. An incentive encouraging a person to competitive struggle is the desire to surpass others.

Competition is a dynamic, accelerating movement process. It serves as a better provision of market in goods.

Competition is an element of a market mechanism that ensures the interaction of market subjects in the production and marketing products, as well as in the field of capital application.

Competition (from the Latin "Concurrere" - facing) means rivalry between individual subjects of market economy for the most favorable conditions of production and sales (purchase and sale) of goods.

Competition is an engine of economic progress. This is due to the fact that the market rivalry leads to success if the entrepreneur takes care not only about the preservation, but also expanding its production, for which it seeks to improve the equipment and the organization, improves the quality of goods, reduces the cost of production of a unit of products and thereby has The ability to reduce prices, expands the range of products, improves shopping and post-service customers.

As can be seen, the concept of competition is so significant that it is not covered by any universal definition. This is a method of management, and such a way of existence of capital, when one capital competes with another capital. In competition, it is seen both the main essential feature, the property of trading production and the method of development. In addition, competition acts as a spontaneous regulator of social production.

Societies, relying on competition, more successfully reach their goals and that it is the competition that shows how it can be more efficient to produce things. It contributes to oss out of the production of ineffective enterprises, rational use of resources, prevents the manufacturers dictate with respect to the consumer. This is the undoubted positive role of competition in public development and the effectiveness of competitive markets.

But competing is far from idyll. At all times, the deep roots of competitive relations took place in the need for a constant struggle for the best conditions of existence. As a result of this struggle, there were not only winners - happy rivals that multiplying their wealth, but also defeated. Such negative sides of its manifestation are associated with competition, such as ruin, impoverishment of a certain part of the population, unemployment, instability, differentiation, social injustice, inflation, and the formation of monopolies, etc.

No possibility to influence the price is key Moment In the modern interpretation of the concept of competition. Joseph Schumpeter argued that at least in terms of economic growth, competition is a rivalry of old new: new products, new technologies, new sources of need for needs, new types of organization

Today it is clear that the fierce competition on domestic marketThe better national firms are prepared for the struggle for the markets abroad, and those in the more favorable position are consumers in the domestic market and in terms of prices, and in terms of product quality. After all, competitive products must have such consumer properties that it would be beneficial to different from similar products of other competitors.

With the transition of Russia to market methods of management, the role of competition in economic Life Societies have increased significantly. At the same time maintaining a competitive environment in the Russian Federation, as in all developed countries Currently, it became an important task state regulation Economy. And therefore the study of competition, its role in the development of market relations is currently the most important task economic research in our country.

1. Types of competition

Distinguish competition:

· Functional (this is a competitive product);

Functional competition arises due to the fact that any need can be satisfied with various ways. For example, for sports or intelligent games - these are chess, checkers, backgammon, cards, etc.; For tourism - boats, bicycles, cars, etc.

· Speed \u200b\u200b(price and quality);

Code competition arises due to the availability of goods intended for the same purpose, but having differences for some important characteristics. For example, tape recorders with different levels of output power.

· Inter-reported (among individual enterprises, firms);

Inter-reported competition - the struggle between enterprises of one or different industries for the limited amount of solvent demand. There is arises between enterprises producing goods or providing services that belong to interdovenacy, intergroup, intragroup and inter-amplifies-competitors. An example is the sewing industry enterprises that produce clothing, as well as the studio on tailoring.

· Intra-separable and intersectoile.

INDUSTRIAL COMPETITION, one of the types of capitalist competition, a specific form of antagonistic rivalry and the struggle between individual producers, capitalist entrepreneurs, joint-stock companies, monopolistic unions of capitalists engaged in the same industry of economy.

Inter-sectoral competition, one of the types of capitalist competition; Specific form of struggle between individual capitalists, joint-stock companies and monopoly associations. M. K. It is the process of overflow of capital from one industry to another, due to which the spirals of the reproduction of public capital.

Depending on the relationship between the number of manufacturers and the number of consumers, the following types of competitive structures are distinguished:

a) A large number of independent producers of some homogeneous product and the mass of separate consumers of this product. The structure of relations is such that each consumer, in principle, can buy goods from any manufacturer, consistent with its own assessment of the usefulness of the goods, its price and its own opportunities to acquire this product. Each manufacturer can sell the goods to any consumer, converted only with its own gain. None of consumers acquire any significant share of general demand. This market structure is called polypolya and generates the so-called perfect competition.

b) a huge number of separate consumers and a small number of manufacturers, each of which can satisfy a significant proportion of common demand. Such a structure is called oligopoly and generates so-called imperfect competition. The limit case of this structure, when the mass of consumers is opposed by the only manufacturer, capable of satisfying the total demand of all consumers, is a monopoly. In the case when the market is represented by a relatively large number of manufacturers offering heterogeneous (heterogeneous) products, they are talking about monopolistic competition;

c) the only consumer of goods and many independent manufacturers. In this case, a single consumer acquires the entire volume of goods supply, which is supplied with all many manufacturers. This structure creates special type imperfect competition, called monoponia (monopoly of demand);

d) the structure of relationships, where the single consumer is opposed to the only manufacturer (bilateral monopoly) is not competitive, but is also not a market.

Competition in its content is very contradictory. On the one hand, it expresses the desire for freedom, economic independence is the manifestation of centrifugal forces. On the other hand, the desire of the competitors themselves will protect themselves from the vaginties of the struggle, which indicates a centripetal trend towards the combination of efforts, a kind of economic solidarity, the guarantor of which state acts, the laws of behavior in the market, protecting the interests of national entrepreneurs from competition of foreign capital, etc. Moreover, the desire to defeat the competitive struggle leads to the establishment of a dominant position in the market, the seizure of market authorities, to the formation of monopolies. Competition and monopolism are not two different interconnected economic forces, but two sides of the same market interaction.

2. Competition methods: price and non-price.

Market and shelter forms

monopoly Oligopoly Monopsonia Competition

Competition is conducted for a limited amount of solvent demand. It is the limitations of demand that makes the firms compete with each other. After all, if demand is satisfied with the goods and / or service of one company, then all the others automatically lose the opportunity to sell their products. And in those rare cases, when demand is almost unlimited, the relationship between firms offering the same type of products is often more like cooperation than competition. Such a situation, for example, was observed at the very beginning of reforms in Russia, when a small amount of goods began to come from the west faced with almost insatiable domestic demand.

Competition can be divided into conscientious and unfair.

Basic methods of conscientious competition:

· Improving product quality,

· Development of pre-and after-sales service,

· Creation of new products and services and the use of NTR achievements, etc.

Basic methods of unfair competition:

· Economic (industrial espionage);

· Fake competitors' products;

· Bribery and blackmail;

· Consumer deception;

· Currency fraud;

· Hiding defects, etc.

Market competition is developing only on the available market segments. Therefore, one of the common techniques to which the firms are resorted to facilitate the pressure on the competitive press, consists in care to be inaccessible to other market segments. All these are funds tools and at the same time evasion evasion.

In economic literature it is customary to share competition on:

· Price (price-based competition);

· Invulsional (competition based on quality of consumer value).

The price competition dates back to the times of free market rivalry, when even homogeneous goods were offered on the market at a wide variety of prices.

The price reduction was the basis with which the industrialist (merchant) allocated his product, attracted attention to himself and, ultimately, won the desired market share.

IN modern world Price competition has lost such importance in favor of non-counseling methods of competitive struggle. This does not mean, of course, that modern market Not used "War of Prices", it exists, but not always in an explicit form. The fact is that "the wage of prices in an open form is possible only until the firm exhausts the reserves of reducing the cost of goods. In general, price competition in open form leads to a decrease in the rate of profit, deterioration. financial state firms and, as a result, to ruin. Therefore, firms avoid conducting price competition in open form. It is currently used in the following cases:

· Firms-outsiders in their fight against monopolies, for rivalry with which, in the sphere of non-price competition, outsiders have no strength or opportunities;

· To penetrate markets with new goods;

· To strengthen positions in the event of a sudden exacerbation of the sales problem.

With a hidden price competition, the company introduces new goods with significantly improved consumer properties, and the price raise disproportionately.

Intelligible competition puts forward higher than that of competitors, the consumer value of the goods (companies produce better quality goods, reliable, provide a smaller consumption price, more modern design).

Best roles playing before and after-sales service of the buyer, because The permanent presence of manufacturers in the service sector of consumers is necessary. Pre-sale maintenance includes satisfaction of consumer requirements under the terms of delivery: reduction, regularity, rhythm of supplies (for example, component parts and nodes). After sales service - the creation of various service centers for the maintenance of purchased products, including the provision of spare parts, repair, etc.

Due to the great influence of the community of media, press, advertising is the most important method of conducting a competitive struggle. With the help of advertising, you can form a certain way to form consumers about a particular product, both both for the best and the worse.

Another type of non-price competition is differentiating products. That is, a proposal of a wide range of types, styles, grades of this product. At the same time, the range of free choice is expanding, and the variety and shades of consumer flavors are satisfied more fully. True, there is a threat that an increase in the range of the product can achieve this level when the consumer starts being confused, a reasonable choice will be difficult and shopping will occupy a lot of time

Each company has a product that is currently different from competitors products. Any product has its own reserves for its further change and development. Therefore, very often, in addition to the release of new products, manufacturers use modification policy, i.e. Changes in the most essential technical and operational properties, product quality, change in external design or packaging form. Thanks to this, the company can change the image of goods, orient it to new sales segments.

Improvement of products produces a company long-term advantage. Admission to the market of products of higher quality or new consumer value makes it difficult to respond from a competitor, because The "formation" of quality passes a long cycle, starting with the accumulation of economic and scientific and technical information.

The illegal methods of non-price competition include:

· Industrial (economic) espionage;

· Luring the specialists who own the production secrets;

· Release of fake goods, externally, no different from products-original, but essentially worst in quality, and therefore usually much cheaper;

· Machinations with business reporting;

· Hiding defects, etc.

The main objects of the attention of industrial espionage are patents, drawings, secrets of production, technology, cost structure; Economic espionage except industrial secrets covers macroeconomic indicators and includes exploration natural resources, detection of industrial reserves; In connection with the development of marketing, the collection of information on tastes and income of various social groups of society is acquired.

All industrial monopolies have classified laboratories, where in all respects they compare the levels of technically solutions, quality, productivity and reliability of their products with similar products of competitors. In these laboratories, each node and the assembly of their own cars and similar products of competitors are disassembled to objectively compare them and identify the actual value of a particular product. All disadvantages or benefits of their own goods are taken into account. All the best competitors adopt and adapt to their machines, mechanisms and structures, if you can get around the patent legislation or if it is beneficial to the firm.

Along with well-known methods, modern industrial espionage uses the latest achievements of science and technology. Very often used various kinds of microscopic devices based on various electronic circuits.

Special technology allows you to intercept any information made by orally through the phone, the following telex, computer. Window glasses can serve as microphones: on their fluctuations, special devices restore the picture of the conversation. The use of electronic equipment provides special services of monopolies, as well as special services of states, the ability to receive the necessary information on the state of the deeds of competitors, their negotiations, etc.

Another thing effective ways Economic espionage is the introduction of "his person" in state bodiesdesigned to regulate the activities of industrial monopolies, which allows to obtain the necessary information about competitors, control the actions related to antimonopoly politics etc.

Private property of the invention is established through patenting. From an economic point of view, patenting is equally monopolizing the benefits associated with the use of a patent.

Mainly, the patent provides real benefits within seven years, which allows during this time to get a considerable profit to its owner. But on the other hand, the appearance of a patent prohibiting the use of any proprietary opening directly competitors makes them on the forced development of some new technical techniques, technologies.

In addition, many of the largest inventions are often not patent in order not to attract the attention of competing companies. This most often refers to technologies, technical processes that are difficult to copy, in contrast to the creation of new products.

The path of the invention to commercial use requires large financial, labor and material costs. Therefore, if there is no danger that the competitor does not introduce the invention faster than the Corporation itself, the invention is not patented if there is a risk that the invention will be used by the competitor, it is immediately patented and the competitor is forced to expect a period of monopoly law 15-20 years. . The secrets of the production of certain goods are not patent so that upon the expiration of a certain period not to make the technology of their manufacturing. The presence of a patent is a powerful tool to control the market, because His violation is punishable by the confiscation of illegally produced products, compensation for damages and the paid by the violator of large fines reaching 10 million dollars. Patents are applied, first of all, to protect the products of the company from fakes or imitation of high-quality goods.

For companies whose products are copied, fakes have catastrophic consequences: the sales market is sharply narrowed, the profit decreases sharply by leaving for fake manufacturers. Fakes undermine the authority of the company, because For fakes, in addition to their cheapness, there are still poor quality, so fakes quickly fail, thereby worsening consumer confidence in the company, whose brand was forged.

3. Place and role of competition in modern market economy

Since the model of perfect competition is a theoretical abstraction, then all really existing markets in one degree or another are imperfect.

Imperfect competition is defined as follows:

· The market on which at least one of the signs of perfect competition is not respected;

· The characteristic of the market, where two or more sellers, having some (limited) control over the price, compete for sale;

· Markets on which either buyers or sellers take into account their ability to influence the market price.

The imperfect competition always existed, but especially aggravated at the end of the XIX - early XX century. In connection with the formation of monopolies. During this period, capital concentration occurs, arise joint Stock Company, Increases control of natural, material and financial resources. Monopolization of the economy was a natural consequence of a large jump in concentration industrial production Under the influence of scientific and technological progress. Professor P. Samuelson emphasizes this circumstance: "The economy of large-scale production may be inherent in certain factors leading to the monopolistic content of the business organization. This is especially clearly manifested in the rapidly changing field of technological development. It is clear that the competition could not long exisure and be effective in the field of countless manufacturers. "

Most cases of imperfect competition can be explained by two main reasons.

First, there is a tendency to reduce the number of sellers in those sectors for whom significant savings are characterized and costs are reduced. Under these conditions, large-scale production is cheaper, and they can sell their products at a lower price than Melkma, which leads to "ousting" of the latter from the industry.

Secondly, markets tend to imperfect competition when there are difficulties for introducing new competitors to the industry. The so-called "entry barriers" may arise as a result of state regulation that limits the number of firms. In other cases, it may be just too expensive for new competitors to "break through" in the industry.

In theory allocate different kinds Markets with imperfect competition (according to the degree of competitiveness):

· Monopolistic competition

· Oligopoly

· Monopoly

The monopolistic competition market consists of a variety of buyers and sellers who make transactions not at a single market price, but in a wide range of prices. The presence of a range of prices is explained by the ability of sellers to offer customers different options for goods. Sellers compete by offering differentiated goods in the market where new sellers are possible. Monopolistic competition is the type of industry market, where there are quite a few sellers selling a differentiated product, which allows them to carry out certain control over the selling price of the goods. The monopalistic competition market has a relatively large number of sellers, each of which satisfies the small proportion of market demand for the general type of goods implemented by the company and its competitors. With monopolistic competition, the size of market share of firms averaging from 1 to 10% of the total sales in this market. The entrance to this market is not difficult to such barriers as a monopoly or oligopoly, but not so easy as with perfect competition.

Real products may differ from each other with quality, properties, external design, but these differences, if there are, are very minor. Differences can be in concomitant goods. Buyers see the difference in sentences and are ready to pay for goods in different ways. To stand out for something, in addition to prices, the sellers seek to develop different proposals for different market segments and are widely used by the practice of the goods of vintage names, advertising, personal sale methods. In connection with the presence of a large number of competitors, their marketing strategies have less influence on each individual firm than in the conditions of the monopoly market.

E. H. Chamberlin in the work "The Theory of Monopolistic Competition. The reorientation of the theory of value "is very brightly emphasized by the feature of monopolistic competition:" To say that each manufacturer in any industry has a monopoly on its own product variety, does not mean to say that the industry is monopolized. On the contrary, there may be very intensive competition within the industry, but, of course, not as described by the theories of pure competition, it is characterized by a monopoly on its own variety of product. ... Monopolistic competition is, of course, something different from pure monopoly, and from pure competition. "

He drew attention to the fact that the differentiation of the goods leads to the fact that instead of a single market there is a network of partially separate, but interrelated markets, there is a wide variety of prices, costs, production volumes of a product of a commodity group. Differentiation does not exclude monopolies on the product. The power of monopoly, however, does not apply to a wider class of goods, the type of which is a monopolized product. Until E. Chabllin The term "monopolistic competition" was used in relation to the oligopoly market structure, for example, A. Pig: "Monopolistic competition - competition between several sellers, each of which produces a significant proportion of all products."

The oligopoly market (oligopolistic competition) is the type of sectoral market, which is characterized by the presence of several very large firms that control a significant part of production and sales and competing with each other. It consists of a small number of sellers, very sensitive to pricing policies and marketing strategies of each other. Each firm conducts an independent market policy, but it depends on competitors and is forced to reckon with them. The goods can be differentiated, and standard. Products may be similar (steel, aluminum), and may be inconsistent (cars, personal computers). A small number of sellers is explained by the fact that new applicants are difficult to penetrate this market. Each seller also reacts to the strategy and the actions of competitors. If any steel company will reduce its prices by 10%, buyers quickly reorient on this supplier. Other manufacturers began to respond either, either also decrease in prices, or the proposal of a larger number of services. The oligopolist never experiences confidence that it can achieve any long-term result due to lower prices. On the other hand, if the oligopolist increases prices, competitors may not follow his example, and then he will have to either return to previous prices, or risk clientele loss in favor of competitors.

It is possible to distinguish such a kind of oligopoly as an oligopoly with a dominant firm. For her, the following signs are characteristic:

· The presence of a dominant firm is an agent who sells or buys a significant proportion of the total market volume and is capable of strategic behavior;

· The presence of a large number of firms-outsiders, small in size of firms producing the same or close goods, but not able to influence the market price;

· The market price is established under the strong influence of the dominant firm, outsiders take it as a given market;

Elvin J. Dolan and David E. Lindsay in the work "Market: Microeconomic Model" about oligopoly and oligopoly interconnection: "The main difficulty in the analysis of the oligopoly is to determine what restrictions are facing firms in the market where there are several competing companies. Firms with oligopoly, as well as with perfect competition and monopolized markets, are faced with restrictions of the cost curve and demand conditions. But, in addition, they face another restriction: the actions of competing firms. Changing the profit, which the company can obtain due to changes in prices, the volume of production, or the qualitative characteristics of the product, depends not only on the consumer reaction (as with other market structures), but also on how other firms are reacting for this - participants in this market. The dependence of the behavior of each company from the reaction of competitors is called oligopolistic interconnection. ... But the oligopolistic relationship can lead not only to fierce confrontation, but also to the agreement. The latter occurs when the oligopolist firms see the possibilities of joint increase in their income by increasing the prices and conclusion of the market sharing agreement. If the agreement is open and decorated and involves all or most of the manufacturers in the market, its result is the formation of the cartel. "

There are the following monopoly definitions:

· Type of the industry market where there is a single merchandel product that does not have close substitutes. The monopolist monitors the price and volumes of release, which allows it to receive monopolized profits. When monopoly, there are prohibitive high barriers to the industry. The monopoly position on the market can be made artificially: with the help of exclusive rights, patents and copyright, ownership of all the most important sources of raw materials, unfair competition;

· Exceptional right of production, fishery, trade and other activities belonging to one person, a group of persons or state;

· Capitalist association, who seized almost the exclusive right to produce and implement a certain category of goods. The purpose of the union is the extraction of high profits. The advantage of monopolies to small producers is the ability to provide a high level of production and capital concentration, dictate prices, hold them at a high level, etc ..

Depending on the scale of market coverage, there is a clean and absolute monopoly. Pure monopoly acts on the scale of one industry of market activities, the absolute monopoly captures the whole sphere national economy. If a pure monopoly is usually formed, as a rule, a private person, the absolute monopoly is in the hands of the state.

With a pure monopoly on the market only one seller. It may be state organization (for example, a post office), a private adjustable monopoly (for example, "Kon-Edison" in the USA), or a private unregulated monopoly (for example, "DuPont" during the market entry with a nylon). In each individual case, the pricing develops in different ways. State monopoly can pursue the achievement of various purposes through policies prices. It can set the price below the cost if this product has important for buyers who are not able to acquire him for complete value. The price can be assigned with the calculation of costs or receiving good income. And maybe it is that the price is appointed very high for all-time consumption reduction. In the case of an adjustable monopoly, the state allows the company to establish rates providing a "fair rate of profits", which will give an organization the opportunity to maintain production, and if necessary and expand it. Conversely, in the case of an unregulated monopoly, the firm of Volina itself to set any price that the market will only withstand. And, nevertheless, for a number of reasons, the firms do not always request the highest possible price - here and the reluctance to attract competitors, and the desire to penetrate faster - due to low prices - for the depth of the market.

Take a concise, but capacious definition of a pure monopoly from the work of Edwina J. Dolan and Daveida E. Lindsa "Market: a microeconomic model": "Monopoly - the situation in which there is only one salesman or service on the market."

By the nature and reasons for the occurrence of monopoly are divided into natural, legal and artificial ones.

Natural monopoly - the owners and organizations owning rare and non-reproducible resources, as well as infrastructure branches ( public transport etc.).

Legal monopolies formed on the legitimate basis (patents, etc.)

Natural monopolies cover rare goods, industries and types of production. These associations are formed about those objects relative to which it is unacceptable to develop competition. Usually here are railways, the defense complex of the country, some types of transport and energy. As Stanleik noted, "competition between these industries will only lead to duplication of costs for expensive main equipment." Therefore, in these industries it is necessary to create natural monopolies. She has owners and organizations that own rare and non-reproducible resources, as well as infrastructure branches (public transport, etc.).

For a natural monopoly characteristic:

· The positive effect of scale in the long term, due to technological reasons;

· The presence of one (two) profitable (large) firms in the industry;

· There are also existence of other firms that, however, will be unprofitable in the long term;

· Unregulated profitable pricing of large firms above limit and medium costs;

· Slended limit pricing.

Legal monopolies are regulated by law and are protected from competition. Participants of these monopolies may have patent or copyright and trademarks. These "attributes" monopolies allow you to protect the creator and manufacturer of any product from unscrupulous persons who are trying to make themselves a state using other inventions. Violation by other persons of these rights is punishable by law.

If the main goal of legal monopolies is to protect their rights, then artificial monopolies are created only for the sake of obtaining cash benefits. The manufacturer creates monopolies, buying and uniting other associations under its authority, in order to approve their domination in the market for the sake of obtaining monopolistic benefits.

These monopolies intentionally change the market structure:

· Create barriers to the market for new firms;

· Limit outsiders (enterprises that have not entered monopolistic association) access to sources of raw materials and energy carriers;

· Create a very high (compared to new firms) level of technology;

· Apply a larger capital;

· "Baby" new firms of well-set advertising.

Artificial monopolies form a number of concrete forms - cartel, syndicate, trust and concern, etc.

However, the first of their organizational forms were pools, i.e. Temporary agreements between two and more firms about the division of the market and set prices. They received the greatest distribution in the 70-80s. XIX century, primarily among railway companies. Pools disintegrated as soon as one of the participants violated the busy established rules, reducing prices or pretending to the market share of another participant.

The consortium is based on temporary agreements between industrial companies in order to develop and implement joint major projects. The consortium participants are almost completely independent, except for the commitments adopted in the Agreement.

The cartel is the combination of manufacturers of one industry, which have manufacturing and sales independence. Carriage agreements include uniform, monopololar prices, provide for the separation of markets. Sometimes the cartel participants have limitations in the production of goods (quotas) in order to be able to hold high prices.

Syndicate is an association of a number of enterprises in one industry with the elimination of their trade independence in order to organize a joint product market.

Trust - represents the association of property and management of a number of enterprises of one or several industries with the complete elimination of their independence. The trust not only sells products, but also fully disposed of enterprises included in its composition. The first trust is considered to be created in 1882 by John D. Rockefeller "Standard Oil Company". The name of the trust happened from the English word Trust- trust. The trusts originally arose in the same industry, but gradually began to go beyond its framework (combined trust). This happened either by way of horizontal combination, i.e. by using by-products of the main production for the issue of other goods belonging to another industry; Either using the vertical combination of enterprises carrying out consistent stages of product processing, including those included in various industries.

Concern is an association of a number of enterprises of various industries by establishing a single control over them. Enterprises in the concern are often located in different countries. The concern of a special kind is a conglomerate, uniting various, non-other enterprises of various industries national economy. These are enterprises that retain their independence in production, sales and supply, which are monitored only for a number of major financial indicators.

By the nature of the price policy, you can allocate a simple and discriminatory monopoly.

Sometimes, in order to obtain additional income, a monopoly, using its market position, sells the same product at different prices in various markets. This is in no way connected with the differentiation of prices depending on the quality of goods and services, as well as differences in costs. Depending on the number of prices assigned by a monopolist for the products offered, R. Barr highlights a simple and discriminatory monopoly. In a simple monopoly, the monopolist prescribes only one price for all. With a discriminatory monopoly, the monopolist prescribes several prices. Discrimination occurs when the monopolist for one period offers buyers or groups of buyers and the same product at different prices. Distinguish four types of discrimination:

· Personal. It is related to the fact that people have different income. We give an example. The doctor establishes various rates depending on the level of income of its patients; Or places in the theater are more expensive in the parter, rather than in other places hall.

· Material. It is based on the use of goods sold and services. This can be a different tariff for industrial and home use by electricity.

· Discrimination for units of goods sold. Its essence lies in various conditions of purchasing goods of payment services by the consumer depending on the number of purchased goods. Thus, prices for goods purchased in retail are always higher than the same goods at wholesale purchases. The price of a rail ticket will increase with increasing paths, but the price of the first kilometers will be more expensive than the subsequent.

· Geographic. The price of the proposed goods and services will vary depending on the location of the seller and the buyer.

A situation is possible when only one buyer is present on the market - such a market is called monoponia. If there is only one seller and only one buyer on the market, such a situation is called a bilateral (bilateral) monopoly.

Antipode of pure competition is a pure monopoly. The monopoly occurs when there is a single manufacturer in virtue of various reasons on the market, which can satisfy the total demand of the entire mass of consumers of this product. It follows that the monopoly product is unique in the sense that there are no good or close substitutes. The buyer must buy a product from a monopolist or without it. The absence of close substitutes for the monopolized product is important from the point of view of advertising. Depending on the type of intended product or service, the company can do or not with extensive advertising and incentives to stimulate sales. For example, a pure monopolist selling luxury items could exercise wide advertising in order to increase the demand for their goods. Perhaps, then more people will want to buy them, abandoning traveling. At the same time, the telephone company, which is the only one in a small town there is no need to advertise its services, as people have ideas about them and know who they must acquire them.

If the net monopolists of a number of public enterprises are engaged in advertising, then the reason for this is likely to increase prestige, and not an increase in market share.

On the monopoly market demand of consumers, on the one hand, meets with a proposal of a monopolist, on the other. The mechanism of interaction between consumers and the only manufacturer on the monopoly market is fundamentally different from the case of perfect competition.

Separate consumers who are not able to influence the market price are forced to adjust their request for the price offered by the monopolist. For its part, a monopolist who can satisfy the overall demand of consumers, so chooses the volume and price in which the goods will be fully purchased by consumers to maximize their profits.

Entry into the industry in a clean monopoly is blocked by existing barriers.

There are several types of barriers that impede entry into the industry:

Savings due to growth in the scale of production: Modern technology in some industries is such that effective low-cost production can be achieved only if manufacturers are extremely large both in absolute terms and the market. Examples of such industries are automotive, aluminum industry. If, for example, there are 3 large firms on the entire market and each belongs about 1/3 of this market, it is extremely difficult to penetrate new competitors for this market: small firms are not able to get such savings on costs as the leading "Troika" and, Consequently, the amount of profits required for survival and expansion. To enter the industry in the form of a major producer it is very difficult to find such a volume. cash capitalwhich will be needed in order to purchase equipment comparable to those accumulated by any of the members of the Troika.

Natural monopolies: usually this sectors provide any privileges. But in exchange for this exceptional right, it reserves the right to regulate the actions of such monopolies in order to prevent the abuse of the monopoly authority that it provided. Examples natural monopolies So-called public enterprises can be used - electrical and gas companies, bus companies, water supply and communication enterprises.

The state may also issue patents and licenses, creating legal barriers to entry into the industry. Having issuing patents a state seeks to protect the inventor from the illegal seizure of the product or technological process Competing firms that did not participate in spending time, efforts and money that went to its development. Profits provided by one important patent can be used to finance research work required for developing suitable products. The monopoly power achieved through patents may well be intensified.

Entry into the industry can be limited by the state by issuing licenses. For example, licenses of radio and television stations, educational institutions.

However, barriers to the entry into the industry, which are very significant in the short-term period, may be overcome in the long term. Existing patent advantages can be carried out by developing a new and different, albeit that can serve as a substitute for products. New sources of strategic raw materials can be found.

Conclusion

Competition is a necessary and determining condition for the normal functioning of the market economy. She has its pros and cons.

To the positive features of competition include: the activation of the innovation process, flexible adaptation to demand, high quality products, high productivity, minimum cost, etc. This ensures the effectiveness of competitive markets.

The negative consequences of competition include: the ruin and impoverishment of a number of manufacturers, excessive differentiation in the conditions of life, the generation of dishonest techniques, crime, excessive exploitation of natural resources, environmental disorders, etc.

Experience recent years He indicates an increase in competition in all spheres of market activities. The emergence of a large number of new enterprises and organizations, the liberalization of imports, the formation of the capital market, the introduction of the Russian market foreign companies - All this has significantly complicated the market situation. An increase in the supply of goods and services, on the one hand, and a decrease in solvent demand on the other, created conditions in which competition has become an ordinary business.

As practice shows, most russian enterprises Not ready to actively conduct a competitive struggle. Under the conditions of price liberalization and the race of inflation, the industry turned out to be in such a difficult situation that any serious innovations associated with the strengthening of the competitive position of enterprises became impossible. Nevertheless, the exit from a difficult financial situation can only be on the way to create competitive production-oriented consumer needs. And in this sense, competition is not only a destabilizing factor, but also the condition for the survival of the enterprise.

Summing up the above, it should be noted: Competition is a complex multifaceted phenomenon. There are many of its species and methods. This element of the economy should be assessed as the vital and most powerful force of the development of the economy.

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