GOVERNMENT-MARKET RELATIONSHIPS AS AN EVOLUTIONARY GAME
Journal Title: Економіка розвитку - Year 2012, Vol 62, Issue 2
Abstract
The notion of mixed economy says nothing about the equilibrium in the system "Government-Market". There is an open question even about the existence of the equilibrium. Besides, the unstable situations are so typical for the economy that they are worth studying. The market equilibrium is not the topic of this article (classical approach), but the equilibrium in the combined Government-Market system is considered.This system is treated in the article as an evolutionary game which allows to use the ideas of evolutionary game theory (Saari, 2010). Government-Market system has a dynamic structure. What is big now could be small tomorrow, in a new historical situation. The system evolves, the degree of government intrusion in the economy changes, so the structure of the system "Government-Market" changes too. Structural evolution of the "Government-Market" system may be regarded as a result of a game. Market and Government are the participants of this game. The outcome of the game is a change in the economic size and power of the market in relation to the economic size and power of the government. Two extreme outcomes of the game are obvious: absolute power of the government (non-market economy) or unbridled market system with zero power of the government. The use of the evolutionary game theory reveals the existence of three possible situations between these two extremes: the first is a stable equilibrium called "attractor" in the theory, and two others are unstable ones. For an unstable situation the theory uses the term "repeller" (Saari, 2010).For each stable equilibrium there should be two unstable ones. The attractor in the "Government-Market" system may be achieved with the help of proper regulation. Two correspondent repellers are interpreted as two different types of crises.
Authors and Affiliations
Andrey Zanegin
THE ESSENCE OF "BANKING SERVICE" CONCEPT AND BASIC APPROACHES TO ITS DETERMINATION
The article reviews and analyzes the main approaches of both foreign and domestic authors to the definition of "banking service" because the scientific literature contains no clear definition of this concept. The contrad...
MEASURES ON INCREASING THE EFFECTIVENESS OF USING LAND RESOURCES AND REAL ESTATE OF COMMUNITY PROPERTY
The necessity of the rational use and effective management of land resources and real estate of community property as a basic source of addition to the local budgets is defined. Problems of managing land resources and re...
FINANCIAL DIAGNOSIS AS A SYSTEM OF ENTERPRISE FINANCIAL STABILITY
The present and permanent changes in the conditions of existence of an enterprise require a special attention to the issue of financial sustainability of organizations as a condition for their effective functioning and f...
СТРАТЕГІЧНИЙ АНАЛІЗ ВИКОРИСТАННЯ РЕСУРСНОГО ПОТЕНЦІАЛУ ІНТЕГРОВАНИХ ПІДПРИЄМСТВ
Узагальнено основні підходи до аналізу використання ресурсного потенціалу, сформульовано основні етапи цього процесу в умовах інтегрованого виробництва. Розроблено на основі систематизації показників комплексної оцінки р...
TECHNOLOGIZATION" OF COMPETITIVENESS: THEORETICAL AND METHODOLOGICAL ASPECTS
The current state of the development of theoretical and methodological foundations of competitiveness technologization has been analyzed, the limited nature of the methodology of analysis of interconnections in the...