INSTITUTIONAL BASIS FOR THE SPIRAL SHAPED MODEL OF MARKET SUPPLY AND MARKET DEMAND
https://doi.org /10.59982/18294359-24.2-im-02
Abstract
In the article the market is considered as a special institution of multi-layered economic relations. For more realistic presentation of economic development, at the microeconomic level, in a mesoeconomic context, new institutional approaches are considered in constructing market demand and market supply curves. Analysis of supply and demand, considering institutional features and market price and non-price factors, influencing economic situation, undoubtably complicates the process of modeling and developing econometric structures that reflect realities. However, the authors believe that at the structural and computational level, a three-dimensional representation of supply and demand curves more realistically corresponds to market processes than the traditional construction on a two-dimensional coordinate space. We consider, that in this context, the method of “spiral dynamics” and “spiral evolution” of social and economic relations helps more accurately model economic processes. Especially for novice specialists, this approach of “spiral-shaped modeling of social processes” helps to more deeply understand the institutional environment of the conflict of public interests and “personal benefits” of economic entities, types of modeling market demand, market supply, market equilibrium and other economic processes.
Keywords: Three-dimensional space of spiral curves of market demand and market supply, Veblen effect, substitution effect, diminishing returns to scale, market equilibrium, spiral evolution.
PAGES : 25-36