Functions and role of the market in the economy. The main conditions for the functioning of the market. Basic principles for the development of a market economy in modern conditions. The essence of the market and the conditions for its normal functioning What is needed for the normal functioning of the market

One of the most characteristic features organization and functioning economic systems in modern conditions is a high level of market development, market relations.

It should be noted that the concepts of "market" and "market economy" are not identical. The market economy assumes a high level of market development and is characterized by such basic features as freedom of enterprise (complete independence economic activity, economic responsibility and rationalism); free pricing (government intervention in the process of setting prices for many types of goods is excluded, prices provide extensive operational information about the demand and supply of goods, production costs, the situation on the markets of individual regions, countries and the world community); competition (regulates prices and quantity of goods produced). Ultimately, any subject, pursuing its own interests, serves the interests of society more effectively.

In the economic literature, several functions performed by the market are distinguished, which reflect its role in achieving the specific economic goals of society.

• Regulatory function is the most important. In market regulation great importance has a supply-demand ratio that affects prices. The implementation of this function allows you to find answers to the questions of what, how and for whom to produce. Rising price is a signal to expand production, falling - to reduce. The market tells producers what to produce, what goods and services to refuse to produce or to reduce the volume of their output. No less valuable information is provided by the market to consumers. Based on it, they constantly make choices about how best to satisfy their many needs. As a result, capital from less profitable industries with lower prices is poured into more profitable industries with higher prices. Through the mechanism of the law of value, supply and demand, the market contributes to the establishment of basic micro- and macro-proportions in the economy, ensures dynamic proportionality in trade between different regions and national economies.
• · Pricing function: realized in the collision of supply and demand, as well as due to the action of competitive forces. As a result of the free play of these market forces, prices for goods and services are formed, a mobile relationship is established between value and price, which is sensitive to changes in production, in needs, in the market situation.
• Stimulating function: through prices, the market stimulates the development of achievements scientific and technological progress, reducing costs, improving quality, expanding the range of goods and services. Since each subject of market relations directly feels the results of the decisions made, he is interested in the most rational use of his available resources.
• · Distributive function: the incomes received by market entities are mainly payments for the factors of production that they possess. The amount of income depends on the quantity and quality of the factor of production and on the price that is set in the market for this factor.
• · Information function. The market is a rich source of information, knowledge, information needed by business entities. It provides, in particular, objective information about social required quantity, assortment and quality of those goods and services that are supplied to the market. The availability of information allows each firm to constantly check own production with changing market conditions.
• intermediary function. Economically isolated producers in conditions of deep public division labor should find each other and exchange the results of their activities. In a normal market economy with sufficiently developed competition, the consumer has the opportunity to choose the optimal supplier of products. At the same time, the seller is given the opportunity to choose the most suitable buyer.
• Sanitizing function. The market clears social production of economically weak, unviable business units, and at the same time encourages the development of the most efficient, enterprising, promising structures. Enterprises that do not take into account the needs of consumers suffer losses and go bankrupt, while socially useful and efficient enterprises develop successfully.

In the economic literature, some other functions of the market are sometimes distinguished: the activation of economic interests, the increase in the susceptibility of the economy to scientific and technological progress, the reduction productive forces in single system, stimulating efficiency economic activity, the reduction of needs with production, the creation of conditions for the effectiveness of labor cooperation.

The implementation of the noted functions allows us to speak about the important role of the market in modern economy. Ultimately, as can be concluded from the above functions, the role of the market comes down, first of all, to finding the optimal solution to the problems of what, how and for whom to produce; ensuring the balance of supply and demand and the balanced development of the economy; differentiation of commodity producers in terms of the effectiveness of their activities.

Conditions for the functioning of the market

For the successful functioning of the market and the performance of its functions, a number of conditions must be met:

• freedom of economic, economic, entrepreneurial activity;
• free market prices, which are set on the basis of the interaction of supply and demand;
• competition, which is the basis of the market;
• flexible state regulation market that does not overwhelm or destroy the market;
• • sustainable monetary and financial systems;
• a stable political environment.

As conditions for the normal functioning of the market, some economists also distinguish:

• 1. variety of forms of ownership;
• 2. The commodity producer must be the owner of the means of production and freely dispose of the results of his labor;
• 3. freedom of production and commercial activities all participants social production;
• 4. a well-established system of monetary and financial relations;
• 5. maintaining healthy competition;
• 6. developed infrastructure.

Functioning market economy carried out on the basis of certain principles. Among them are:

• · Economic freedom of activity of subjects of economy.
• · Universality of market relations.
• · Equality of market subjects.
• · Free pricing.
• · Self-regulation of economic activity.
• The contractual nature of the relationship.
• · Economic responsibility of subjects.
• · Self-financing.
• · Competition.
• · State regulation of the economy.

The market is not created for one day. This form of economic organization has been formed over the centuries and has proven its effectiveness, therefore, it must exist and develop in the future. To do this, it is necessary now to create the conditions that will serve as the basis for the normal functioning and development of the market economy.

The transition to market relations is a complex process that has taken place in many countries. Mankind has accumulated a certain amount of experience, identified patterns of market formation, which must be used in our country. There are many conditions for the normal functioning of the market, but three main ones can be distinguished from them. In order for the market to begin to function as an independent full-fledged system, it is necessary to have diverse forms of ownership, have a reserve of production factors and create a market infrastructure.

The main conditions for the transition to the market - a change in property relations, the creation of a variety of forms of ownership. Any form of ownership that encourages entrepreneurship, competition and further development market relations should have the right to exist.

The practice of market relations has convincingly shown that in modern conditions the most effective is shareholding form of ownership. This is determined by the following factors.

• 1. Joint-stock ownership through the sale of shares quickly mobilizes significant capital and helps maintain the proportion between supply and demand. Remember the mechanism of the market: its main driving force and main indicator are prices. If demand outstrips supply, then prices grow and it is necessary to expand production. Rising prices and, accordingly, an increase in the rate of profit attract additional capital to this industry. The issued shares immediately find their buyer, and additional capital is poured into production, which is used for expansion.
• 2. Share capital democratizes the economy. The problems that we have been trying to solve since 1986 - the problems of democratization of production and management - will receive new opportunities for their solution. Owning shares of his company, any employee is interested in increasing production efficiency, profit growth. He will participate in the search for development reserves and in the optimization of management. In industrialized countries, the majority of the employees of every enterprise own its shares and receive some part of the income in the form of dividends, and this part is constantly increasing.
• 3. Shareholding stimulates the development of production diversification. Diversification - it is a form of cooperation involving the investment of capital in any industry. For example, any big company can afford (and does) invest the profits not only in its own production, but also in the construction of sports facilities, the purchase of hotels and restaurants, the maintenance of gas stations, the production of shoes and medical equipment, confectionery and metal-cutting machines - in a word, where you can get additional profit. What does it give? Much: for the firm - the stability of income (if things go badly in one industry, profit in another will help correct the overall picture), for production - additional capital from other industries, for the market - an increase in its density (i.e. mass and range of goods) .

These factors show that joint-stock ownership is the most rational for the development modern market. But in order to create a joint-stock company, shareholders are needed, i.e. people who buy shares in private ownership. Therefore, private property serves as a prerequisite, the initial form of creating joint stock. In our country, it was necessary to start precisely with private property: to restore its right to exist, the right to have every person own any factor of production.

This problem is inextricably linked with another: denationalization of the economy, denationalization, privatization. These three concepts in our periodicals are often identified with each other. In reality, these are different phenomena, and it is necessary to clearly understand the differences between them.

Denationalization means a reduction in the share of the public sector in the economy. This can be achieved not only by denationalization or privatization. Let us assume that the share of the state sector is 90%, and the rest is produced by cooperatives, collective farms and individual, private enterprises. If on next year the share of cooperatives, collective farms and private entrepreneurs will increase, then the public sector will account for 85%, then 80%, etc. That is, the process of denationalization begins. This process can be stimulated through the tax system, investment policy, improvement of economic law.

Denationalization - sale of enterprises previously nationalized by the state and their shares in the ownership of private companies, joint-stock companies etc.

In order for denationalization to be effective, a number of conditions must be met.

• 1. Clearly define subject of ownership. The untimely solution of this problem in our country led to the fact that enterprises, real estate belonging to the people, for nothing, passed into the hands of former party apparatchiks and employees of executive committees different levels. The organized State Property Fund somewhat relieved the situation, although it did not solve the problem. The experience of countries with market economies (which have denationalized a lot of state property in recent years) shows that the most rational organization of this type are holdings, which are best created at the level of individual regions. They must, based on expert assessments determine the sale prices of enterprises, act as holders (custodians) of the shares of each enterprise and sell them when a decision is made to sell them.
• 2. Legislatively establish mechanism for distribution of shares of denationalized enterprises. In all developed countries, in this case, a share is allocated, which is necessarily sold to a certain group of potential buyers: employees this enterprise(moreover, at prices significantly below face value), foreign firms, national firms, residents and financial institutions countries. In this case, the process of democratization of production continues, foreign capital is attracted, and hence technology, the process of diversification and attraction of free cash capital is developing.

The result of denationalization is expressed in the demonopolization of the economy, democratization of property relations, obtaining an anti-inflationary effect, and it occurs in two directions:

• o the burden on the budget is easing, as the sold enterprises are removed from budget financing and grants;
• o through the sale of shares, free cash is withdrawn from circulation.

The corporatization process in our country has shown shortcomings that need to be worked on in order to obtain the maximum socio-economic effect. The mechanism for distributing funds received from corporatization was not thought out to the end (they mainly go to state funds to solve social tasks). Of course, this is important, especially in the conditions in which the country was in the 1990s, and it is clear that the state did not have enough funds to ensure social assistance population and pensions.

At the same time, one should not forget about the other side of the problem. The matter is that the corporatized industrial enterprises demand radical reconstruction. They will not be able to work profitably on the existing worn out, obsolete equipment, and even more so they will not be able to re-equip production to produce products required by the market. And this means that they are doomed to bankruptcy. The consequences of this should also be clear: the cessation of production, a new group of unemployed who need to be supported and employed, not to mention the fact that there will be no budget revenues from such an enterprise.

Another problem is connected with the subjects of joint-stock property. During the corporatization, it was assumed that the main owners of enterprises would be labor collectives. But in accordance with the corporatization rules, only the collectives of those enterprises that were corporatized according to the second option could become the real owners of production. In this case, the collective would receive 51% of the shares. However, under this option, the team does not receive any benefits; on the contrary, the conditions for corporatization are very strict. In order to buy out such a package, each member of the team had to pay a significant amount (especially for large enterprises).

Taking into account the conditions in which the people lived, when the savings accumulated over many years, stored in the Savings Bank, actually disappeared, prices were constantly growing and all the money received wage practically went to the current consumption, it was very difficult to do this. The workers simply did not have the money they needed to buy back the shares. As a result, the shares not redeemed by the team were transferred to the disposal of the State Property Fund and were put up for auction, where they were able to be bought by representatives of that small segment of the population who managed, using their official position and state property, to put together private capital. As a result, the collectives ceased to be masters of their production.

Thus, the corporatization process gave rise to new socio-economic problems that had to be urgently addressed.

Under privatization as one of the forms of denationalization is understood the purchase of state property by individual private individuals. Practice has shown that such privatization is possible in our country, mainly in the sphere of trade and services.

The second condition for the formation of the market is creation of reserves of production factors. It is possible to develop and realize the advantages of the market mechanism only when there are reserves of means of production and labor in society, since in order to restore the balance of supply and demand in the face of rising prices, not only additional capital is needed for investment in production, but also additional factors of production that can be buy with invested capital.

The issue with the means of production is easier to solve: in practice, there are three ways to solve the problem:

• 1) buy additional means of production;
• 2) increase the capacity of the production base through the introduction of new technologies;
• 3) create a reserve of means of production at enterprises.

The first way is associated with additional time costs, since the equipment needs to be ordered, bought, installed, sometimes it is necessary to build new premises, and most importantly, the equipment that is currently on the market is bought and, as a rule, the same as the current one, and this reproduces the old structure of production. Therefore, it is more efficient to carry out various combinations of the last two ways: modernization technological processes and use of spare capacity. Typically, such reserves in the form of installed, but temporarily non-operating equipment are available at each enterprise.

The problem of labor reserve is much more difficult to solve. Here we are talking not only about people additionally involved in production, but also about unemployment. Everyone recognizes that unemployment is a negative phenomenon in a market economy, but it is also an objective necessity. It must be borne in mind that in modern conditions unemployment is not the same as Marx wrote about a century and a half ago. A new unemployment factor appears - increased labor force mobility: people are looking for a more profitable job, changing their specialty, undergoing retraining, etc. This is the so-called transitional, or frictional, form of unemployment associated with the demographic situation, with the distribution of productive forces, with a person's search for opportunities for self-expression and solving their economic problems. Structural unemployment also exists in developed countries. It arises with major structural changes in the national economy. Since a change in the structure of our economy is objectively necessary, we will also have this form of unemployment.

In any case, all forms of unemployment are an additional source of labor for functioning enterprises with the expansion of production. And we must keep in mind that a market economy cannot provide 100% employment, and this is not necessary. A permanent reserve of labor force is needed in the form of unemployment. However, this does not mean that everyone is waiting for a place in the reserve army of labor. As a rule, only certain categories of the employed are more at risk of becoming unemployed. First of all, these are unscrupulous, unskilled workers, workers of obsolete professions with no experience, etc. At the same time, if a conscientious skilled worker finds himself out of a job, it is only for a very short time. As a rule, he will always be able to find a job, but he will choose the conditions of employment. All these points relate to a normally functioning market economy, but during its formation, the problem of unemployment sharply worsens, since the transition to a new type of economy is always accompanied by a decline in production.

The third condition for the creation of a market and its normal functioning is the existence of a market infrastructure. We have only separate elements of this sphere, which also need reconstruction. In fact, the infrastructure in Russia needs to be created anew.

For the market of goods and services, we have only retail, but the network of stores is clearly insufficient, their structure, quantity, specialization and quality of service are far from ideal. Even the emerging network of private stores does not solve the problem, because the goals of their creation and operation are one-sided, and the working conditions do not stimulate competition. Structure wholesale trade is in its infancy, it is carried out mainly by the former structures of the Gossnab, modified into commercial firms, partly by the manufacturers themselves and small private firms. Trade is conducted directly from enterprises or bases; wholesale stores are still missing.

The system is very important for the normal functioning of a market economy. commodity exchanges. Their main task is to streamline the market for raw materials and other goods. Exchange trading provides the possibility that at the current prices there will be neither a shortage nor overstocking, i.e. it serves as a regulatory link between producer and consumer.

Some work has been done in Russia to create commodity exchanges - specialized, regional, universal. Almost all of them began to function, but unlike commodity exchanges in a developed market economy, they sold only goods that they had in stock.

In fact modern commodity exchange - this is a market for contracts for the supply of products in the future with relatively small volumes real sales. Economic role exchange in that it contributes to the stabilization of prices, the instruments of which are the mechanism of the functioning of the exchange and the established rules of exchange trading. One of the basic rules is the publicity of the deal. Sellers announce the quantity of offered goods for delivery, terms of delivery and prices. After an agreement has been reached with the buyer, the main provisions of the concluded contract are recorded on stands specially installed in the halls.

Each exchange publicly sets prices at the beginning and end of the day, and there are certain rules limiting price fluctuations within one day. The exchange constantly collects and processes information about possible suppliers of goods, about the needs of consumers, makes forecasts about future needs and prices. In addition to the fact that the exchange exercises control over the quality of the lots of goods sold and, simultaneously with the manufacturer-supplier, is responsible for violation of the terms of the contract, it develops standards for goods, registers trade marks firms admitted to participate in exchange trading. Domestic exchanges practically did not perform these functions and, in fact, were wholesale stores for the sale of certain types of raw materials. That is why most of them did not last long.

The market cannot exist without determining future needs, demand for certain types goods, since in modern conditions this would lead to significant losses and even raise the question of the legitimacy of the existence of individual firms. Such work is carried out by specialized organizations and divisions within firms that perform marketing functions.

The most general definition marketing, found in economic literature characterizes it as foresight, the management of demand for goods, services, labor, territories and ideas through exchange. From the standpoint of a firm or enterprise, marketing can be defined as integrated system organization and management of industrial, commercial and marketing activities focused on the satisfaction of specific consumers and certain groups buyers. It reflects one of the main principles of marketing - targeting of production, i.e. production of products for a specific consumer, predetermined.

higher goal modern marketing is not just meeting the specific needs of the buyer, but complete solution its problems based on the analysis of sufficiently accurate information about the most significant aspects of the consumer's activities, his goals, achievements and intentions. We are talking not only about products, but also about a system of interrelated products and services, on the production of which the manufacturer focuses its activities.

The creation of market relations in the country requires the development of its own marketing concepts. For industrial enterprises this is needed for a long time. So far, enterprises have been working almost blindly, only thanks to the previously established economic ties. But even these ties were gradually destroyed due to monopolistically inflated prices for their products by suppliers, their conversion to the production of more profitable products. this moment goods. Obviously, this practice could not lead to an increase in production and sales.

The state, in our opinion, should take over strategic management industrial complex and in no case do not withdraw from this under the pretext of corporatization of enterprises. It would be more correct to fight monopolization by creating favorable economic conditions for the development of private business, for long-term foreign investment. In that case, on Russian market there will be strong, capable competitors.

labor market presupposes the existence of a labor exchange, which should keep records of vacancies, the number and structure of the unemployed, help them find work, pay benefits, ensure the retraining of personnel in accordance with the demand for labor, and organize public works.

capital market requires the creation of stock and currency exchanges. Work in this direction in our country is actually just beginning.

In addition to private infrastructure appropriate to a particular type of market, it is necessary to create general purpose infrastructure. We are talking about the creation of credit, banking and monetary systems capable of ensuring the normal functioning of the market. Not a single market will be able to work without this, and, moreover, this infrastructure, not being a product of the market itself, at the same time ensures its unity, integrity throughout the country and in relations with other countries. Only the state can perform the functions of creating such an infrastructure and maintaining it.

Simultaneously with the creation of conditions for the functioning of the market, which we discussed above, it is necessary to consider a whole range of problems, without the solution of which the market cannot exist.

One of the main problems is demonopolization of the economy. Monopoly manifests itself in various forms Oh. A typical type of monopoly is a producer monopoly. From the first years of Soviet power, giant enterprises began to be built in our country, which initially became the only producers of a certain type of product, i.e. created monopolies. The consequences of this are well known: rising prices, declining product quality, curbing scientific and technological progress. In addition, failures in the operation of such monopolist enterprises inevitably lead to failures in related industries and to disruptions in the functioning of the national economy as a whole.

In addition to this form, our economy was characterized by the presence of peculiar monopolies: the monopoly of state property and the monopoly of distribution. Starting the fight against monopolies, one must remember one rule: a monopolized economy can only be managed by administrative methods. Therefore, if the administrative system is completely destroyed before the monopolies are eradicated, then this can make the economy unmanageable. We are witnessing some facts of this phenomenon now. Therefore, the fight against monopolies, i.e. demonopolization should be carried out through the creation of effective, consistent laws on competition, on entrepreneurship, etc. Such documents should outlaw monopolism. They should reflect that if enterprises are caught, for example, in collusion on prices or division of spheres of influence, if monopoly tendencies appear on the market (your products are 90% of the market, prices do not change, quality does not improve, etc.), then you may be taken to court.

It is not enough just to create laws, you need to have organizations and institutions that implement them and responsible for their performance. We only pass laws on the economy, but their implementation is often left to chance. In developed countries, the functions of implementing legislative acts are assigned to sectoral ministries.

All of the above activities should be carried out within the framework of the developed antimonopoly policy. First of all, it is necessary to single out the object of demonopolization. In any economy, so-called natural monopolies can exist (for example, single network railways, gas pipelines, unified energy system, etc.). This is such a field of activity, the transfer of which to market relations, due to a number of technical and economic properties of production, can lead to a decrease in the efficiency of its functioning.

In the transition to a market economy, it is necessary to fight against the mafia and corruption, against new forms of existence of the shadow economy, which is based on concealing income from taxation and falsifying a trademark.

It is possible to develop a market economy only under the condition of developed contacts with the world market, with other countries. Ways of development externally economic relations may be different: international trade; creation of joint ventures and free economic zones; attraction of foreign capital; development of foreign exchange relations. But all these processes are focused on problems that need to be addressed: these are the convertibility of the ruble and state guarantees, compliance with the norms of international economic law.

Since the market does not deal with the problems of ensuring the socio-economic rights of the population, the state during the transition to the market needs to create a system social guarantees for the population. It should operate not only during the transition to the market, but also in a developed market economy.

Considering the problem of the formation and development of the market, one must constantly keep in mind that the market itself is a form of organization of production and its relations. It can be used for various social purposes. Depending on the choice of goals, the mechanism of a market economy and, consequently, the type of market may be different.

There are elements in the mechanism of the functioning of a market economy that make it possible to realize any social goals. The point is that the market is not yet a market economy. Under market economy the market is understood in unity with the economic functions of the state, with state regulation of the economy. The state can intervene in the processes of redistribution of income and in consumption. Its intervention in such processes is increasing in all countries, which is associated with the strengthening of the social orientation of national economies. This must be foreseen in advance in the economic mechanism of Russia being created in order to be able to realize the social goals of the country's development.

Market Conditions

For the successful functioning of the market and the performance of its functions, a number of conditions must be met:

freedom of economic, economic, entrepreneurial activity;

free market prices, which are set on the basis of the interaction of supply and demand;

competition, which is the basis of the market;

flexible state regulation of the market that does not suppress or destroy the market;

sustainable monetary and financial systems;

stable political environment.

As conditions for the normal functioning of the market, some economists also distinguish:

variety of forms of ownership;

the commodity producer must be the owner of the means of production and freely dispose of the results of his labor;

freedom of production and commercial activities of all participants in social production;

well-established system of monetary and financial relations;

maintaining healthy competition;

developed infrastructure.

Classification of markets. Types and types of markets. Systems, structure and infrastructure of the market

The market has a complex structure, covering all spheres of the economy with its influence.

The structure of the market is the internal structure, location, order of individual elements of the market.

We can name the following features of the market structure: close ties between its elements; a certain stability of these links; integrity, the totality of these elements.

The market covers elements directly related to the provision of production, as well as elements of material and monetary circulation. A significant impact on the market is provided by the presence of various forms of ownership and management, features of the sphere commodity circulation, the level of denationalization and privatization and other factors. It is also connected with the non-productive sphere and even with the spiritual sphere (the area of ​​paid sale of products of intellectual activity of scientists, writers, artists, etc.). All this determines the complex structure of the market, the diversity of its types and types.

The totality of all markets, divided into separate elements on the basis of various criteria, forms a system of markets.

In the economic literature, more than a dozen criteria are distinguished for characterizing the structure and system of the market, its classification. Let's consider some of them.

1. By economic purpose objects of market relations:

Market of goods and services (consumer market);

Stocks and bods market;

Labor market (labor market);

Market and currencies;

information market;

Market of scientific and technical developments (patents, know-how licenses), etc.

2. By product groups:

Markets for industrial goods;

Markets for consumer goods (for example, food);

Raw materials markets, etc.

3. By geographical location:

Local (local) markets;

Regional markets;

national market;

World market.

4. By subjects or their groups:

buyers market;

Sellers market;

Market of public institutions;

The market of intermediate sellers - intermediaries, etc.

5. According to the degree of restriction of competition:

Monopoly market;

Oligopolistic market;

Market of monopolistic competition;

Perfect competition market.

6. By saturation level:

Equilibrium market;

Scarce market;

Excess market.

7. According to the degree of maturity:

Undeveloped market;

Developed market;

Emerging market.

8. According to legislation:

Legal (official) market;

Illegal, or shadow, market ("black" and "gray").

9. By the nature of sales:

Wholesale market;

Retail market.

10. By the nature of the range of goods:

A closed market where only the products of the first manufacturer are presented;

A saturated market with many similar products from many manufacturers;

A broad range market in which there are a number of types of goods related to each other and aimed at satisfying one or more related needs;

A mixed market in which there are a variety of goods that are not related to each other.

11. By industry:

car market;

oil market;

Market computer technology etc.

In the market structure, the following types of markets are also highlighted:

• - Markets for goods and services, which include markets for consumer purposes, services, housing and buildings for non-industrial purposes.
• - Markets for factors of production, which include markets for real estate, tools, raw materials, energy resources, minerals.
• - Financial markets, i.e. capital markets ( investment markets), credit, securities, currency and money markets.
• - Markets of an intellectual product, where innovations, inventions, information services, works of literature and art act as objects of sale.
• - Labor markets, which are economic form movements (migrations) labor resources(work force).

For the normal functioning of the market, a well-organized work of various specialized institutions, enterprises, organizations and services is necessary. The system of such institutions, enterprises, organizations and services that ensure the movement of goods and services is a market infrastructure.

Market infrastructure is defined in different ways:

as a complex of elements, institutions and activities that create organizational and economic conditions for the functioning of the market;

as a set of institutions, organizations, state and commercial enterprises and services that ensure the normal functioning of the market;

as a set of market institutions that serve and ensure the movement of goods and services, capital and labor.

In general, infrastructure can be defined as a set of institutions, systems, services, enterprises and organizations that serve the market and perform certain functions to ensure its normal functioning.

The main elements of the market infrastructure in modern conditions are:

exchanges (commodity, commodity, stock, currency), their institutionalized mediation;

auctions, fairs and other forms of organizational over-the-counter mediation;

credit system, commercial banks;

issuing system, issuing banks

the system of regulation of employment of the population and the centers of state and non-state employment assistance (labor exchanges);

information technologies and means of business communication;

tax system and tax inspection;

various risks insurance system and insurance companies;

chambers of commerce, other public, voluntary and state associations(associations) of business circles;

customs system;

employee unions;

commercial and exhibition complexes;

system of higher and secondary economic education;

audit companies;

advisory (consulting) companies;

public and state funds intended to stimulate business activity;

special free trade zones.

For the successful functioning of the market and the performance of its functions, it is necessary to comply with a number of conditions (principles):

• freedom of legal economic (entrepreneurial) activity of all participants in social production;
• universality of market relations;
• contractual nature of economic relations;
• equality of economic agents;
• a certain level of economic responsibility;
• free market pricing based on the interaction of supply and demand;
• competition, which is the basis of the market;
• flexible state regulation of the market that does not suppress or destroy the market;
• variety of forms of ownership;
• sustainable monetary and financial systems;
• stable political environment.

The market as an effective mechanism for coordinating the activities of economic entities is characterized by the following advantages:

• efficient allocation of resources;
• the ability to operate with limited information about price and costs;
• flexible adaptability to changes in market conditions ( high mobility);
• susceptibility to the achievements of scientific and technical progress and their prompt introduction into production;
• freedom of choice and action;
• ability to meet a variety of needs.

However, the market is also characterized by negative aspects:

• does not save non-reproducible resources;
• does not save environment;
• does not regulate the world's wealth and resources (for example, fish);
• does not create collective goods and services (education, defense, healthcare);
• does not guarantee the right to work and income (does not redistribute income);
• does not provide fundamental research;
• satisfies the needs of those who have money, and not the demand for socially significant goods;
• subject to instability, periodic ups and downs.

In conclusion, we note features of a modern market economy:

• flexible, adaptive production;
• the target function is not profit, but market expansion, modification, quality improvement, cost reduction;
• saturation with goods and services;
• change in the forms of entrepreneurial activity in the direction of increasing the share of small businesses;
• state regulation and promotion of competition;
• the formation of a new type of labor relations through participation in ownership, in the management of production of workers (working stock ownership).

Thus, the market economy is a complex system of connections, through which countless individual, freely made decisions are taken into account, summed up and mutually balanced. The main source of information on the basis of which this or that variant of economic behavior is chosen is prices that balance supply and demand.

Market demand and supply. Market balance. Elasticity of supply and demand

Demand, demand function

Demand shows how much of a product that consumers are willing and able to buy at a given time at each price offered in the market.

It is necessary to distinguish between the terms "demand" and "quantity of demand".

Demand quantity is the quantity of a good that consumers want and can afford (are willing to) purchase at that particular price. It should be noted an important condition that by demand we understand only the quantity of goods that the buyer is able to purchase. So we are always talking about solvent demand.

Law of demand- this is the law of dependence of the magnitude of demand on the price level: usually, the lower the price of a product, the greater its quantity will be bought, and vice versa.

Economists call demand a quantitative quantity that varies depending on different conditions called demand factors .

The dynamics of demand is influenced by price and non-price factors:

• The price of this product (P);
• Prices of other goods (substitutes and compliments) (Р s , Р c);
• Current income of consumers (I);
• Tastes and preferences of consumers (Z);
• Objective (external) conditions of consumption (N);
• Market and product information, including advertising (Inf);
• Stocks of goods (R);
• Time period, including the seasonality of consumption (T);
• Consumer expectations (E).

Demand, of course, depends on many variables, and only the main factors are listed here.

The dependence of demand on various factors is called demand function:

Q d \u003d f (Р, Р s 1 ... Р s n, Р c 1 ... Р c m, I, Z, N, Inf, R, T, E), where Q d is the volume of demand.

In the simplest case, the demand function is expressed solely on the price of the product, as the main factor affecting demand:

Qd = f(P)

A linear demand function (i.e. when it is represented as a straight line on a graph) can be mathematically written as follows:

a- the maximum possible demand in the market for this product,

b- dependence of demand change on price change (simultaneously reflects the slope of the demand curve),

p- the price of the goods.

The minus sign indicates that the demand function is decreasing.

The demand function can also be presented in tabular form as a demand scale. For example, the demand for a product can be represented as follows:

Also, demand and, accordingly, the demand function can be expressed graphically:

Demand curve Shows the relationship between the market price and the quantity demanded for a given good. Movement along the demand curve is change quantities demand when prices change, i.e. quantity of goods that buyers are willing to buy. Change in demand- this is a shift in the demand curve itself, mainly it reflects the influence of non-price factors (the exception is a change in prices for related goods). For example, an increase in consumer income causes the demand curve to shift to the right.

The inverse dependence of the dynamics of demand on the price level is determined by three reasons:

• lowering the price increases the number of buyers,
• expands their purchasing power,
• makes it profitable to purchase additional units of cheaper goods.

The action of price factors leads to a change in the magnitude of demand, moving it to other points along a constant demand curve. The action of non-price factors leads to a change in demand (demand function) and is expressed in a shift in the demand curve to the right (if it grows) and to the left (if it falls).

The relationship between price and demand can also be considered in the opposite direction: P \u003d f (Q) is inverse demand function. The linear demand function will look like

The economic meaning of the inverse demand function is that more goods can only be sold at a lower price.

Individual and aggregate (market) demand. Aggregate demand in the market consists of the individual demand of many buyers. Moreover, under individual demand, both the demand of an individual consumer and the demand in one of the markets for this product (for example, regional) can be taken. Suppose that the demand for a certain product is the sum of the individual demand of three consumers, then the aggregate demand can be represented as:

Atypical behavior of the quantity demanded is expressed in the fact that the price increases and this causes an increase in the quantity demanded. AT economic theory several effects are noted when demand behaves atypically.

Giffen effect. When the price of basic commodities rises, fearing further price increases, the low-income population begins to buy more of these commodities, building up a stockpile for the future. Thus, the higher the price of a good, the greater the demand for it. This phenomenon was first described in the middle of the 19th century, when, under the threat of famine in Ireland, people reacted to the increase in the price of potatoes by increasing demand for it.

Veblen effect(1899). This effect is expressed in conspicuous consumption of prestigious goods. Raising the price of some prestigious goods and services does not make them less attractive to those who buy not so much the product itself as the prestige associated with owning this product (for example, buying an expensive car, buying clothes in fashion boutique, lunch at an expensive restaurant). However, the Veblen effect can also have a rational basis: the price of a product can be identified with its price, while the consumer becomes wary of buying goods at low prices. This effect is most actively used in marketing: the creation of fashionable prestigious and expensive brands also based on the Veblen effect.

When identifying the essence of market relations, one must proceed from the fact that the concept of "market" has a dual meaning. First, in In the proper sense, the market means sales, which is carried out in the sphere of exchange, circulation. Secondly, the market is a system of economic relations between people, covering the processes of production, distribution, exchange and consumption. It acts as a complex mechanism for the functioning of the economy, based on the use of various forms of ownership of commodity-money relations and the financial and credit system.

In addition to circulation as such, market relations include:

Relations associated with the lease of enterprises and other structures of the economy, when the relationship between the two entities is carried out on market basis;

Exchange processes of joint ventures with foreign firms;

The process of hiring and using labor through the labor exchange;

Credit relations when issuing loans at a certain percentage

The process of functioning of the market management infrastructure, which includes commodity, stock, currency exchanges and other divisions.

The market operates under certain conditions. Until recently, there were such economic conditions in Russia that hindered the development of market relations, which was due to a multi-subject economic system focused on the use of a single state property; excessive regulation of production and economic processes at the macro level: restriction of economic freedoms of management at the micro level; the orientation of the material and financial support of all economic structures to centralized methods.

Currently, these restrictions have been formally eliminated. However, instead of them, other restrictions and deterrents have come into force in the form of exorbitantly high taxes: granting freedoms to trade and speculative entrepreneurship; expansion of criminal activity - racketeering, extortion, illegal production and economic transactions of state and commercial structures. All this has a negative impact on production and economic activity, leading to a drop in production rates.

In this regard, the choice of conditions that ensure the introduction of civilized market relations acquires relevance. These conditions can be divided into two groups. The first is related to the introduction general conditions Management, providing market relations. These include:

implementation of multiple forms of ownership(private, cooperative, joint-stock, state). When implementing this condition, it is necessary to follow the sequence and avoid sharp imbalances during structural changes;

democratization of production while maintaining state regulators. At the same time, one must proceed from the fact that the market economy in itself is not a self-regulating system capable of endless prosperity; one cannot rely on the fact that capitalism "develops on its own" (McConnell K., Brew S. Economics.-M .: Respublika, 1992.);

creation of market infrastructure, which combines three main elements: the market for goods and services; the market for factors of production; financial and market.

The second group of factors includes a system of measures related to the development of legal legislation and the adoption economic provisions on the transition to market methods of management. Firstly, clear measures are required for the formation and possession of diverse forms of ownership and management, which do not allow plunder and irrational use. Secondly, overcoming the deficit through the restructuring of priority sectors in the economy. Thirdly, transformation of the economy into open system with the attraction of foreign capital and the creation of mixed enterprises.