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Authors

Pilipuk A.

Degree
PhD in Economy, Associate Professor, Institute of System Researches in Agroindustrial Complex of National Academy of Sciences of Belarus
E-mail
pilipuk.andrei@gmail.com
Location
Minsk
Articles

The development of the scientific theory of effective competition

The main objective of the research was to find out differences between effective and ineffective competition. The study include a review of authors before A. Smith, classic works, static, dynamic, evolutionary approaches, theory of games and others. Based on the findings we give an own definition of competition in term of dynamic self-organization of individuals through bargaining in a complex social-economic system. In the theoretical part of the study we showed a logical development of understanding the role of competition from necessity of perceived fight to the efficient, safe and compromise exchange of the goods in base of accepted price ratios. We used the game theory as a key model of competition. It allowed us to prove some existence of positive and negative effects. The study showed a role of uncertainty as a main problem to overcome through competition and endogeneity of the competitive conditions, which depends from the externalities, path dependence and network effects. Consistent to earlier research the study supported the hypothesis that effective competition occurs without conflict, that is possible because of the frequency of the bargaining and asset specificity.
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Mechanism and models of competitive performance

The study shows the role of the A. Smith’ study in the development of the competitive performance mechanism of industrial organization. We found out and presented three key pushing elements of the mechanism: competitiveness, competitive framework and final result of competition. In theoretical part we proposed and described the difference of main definition around term of economic competition (perfect market, competitive, competitiveness, cooperation, emulation, contest, contention, rivalry). They have been combined in a set of nine key models of competitive performance, justified by its degree of personalization, frequency of exchange operations and classified in terms of game theory (cooperative, non-cooperative) and the main theoretical models of competition: ‘Possession’ and ’Ttitle’ (by MacCallum), ‘Discovery Procedure’ (by Hayek).
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