MARKET MECHANISM AND ITS EFFICIENCY
Abstract
This article examines the principles of the market mechanism and its impact on economic efficiency. The market mechanism is considered as a system aimed at ensuring the optimal distribution of resources through the interaction between supply and demand. The main goal of the research is to analyze how market prices are formed, the impact of this process on efficiency and its place in the efficient allocation of resources. The strengths of the market mechanism (self-regulation, rapid flexibility, development of innovations) and weaknesses (externalities, monopolies, information asymmetry) are widely covered.
References
1. Adam Smith - "The Wealth of Nations": The main source for understanding the market mechanism and the "invisible hand" theory.
2. Alfred Marshall - "Principles of Economics": Provides in-depth information about the market mechanism's effect on supply and demand balance, price formation and efficiency.
3. Paul Samuelson and William Nordhaus – "Economics": Covers economic concepts such as the market mechanism, government intervention, monopolies, and externalities.
4. Milton Friedman - "Capitalism and Freedom": An important source for the study of ideas about the freedom of the market and the limitation of government intervention.
5. Joseph Stiglitz - "Economics of the Public Sector": Provides detailed information on externalities, information asymmetry and government intervention in economic activity.
6. Gregory Mankiw - "Macroeconomics": An important resource for studying the impact of the market mechanism on economic stability and efficiency.
7. Michael Porter - "Competitive Advantage": About the competitive environment, monopolies and ways to improve market efficiency.
8. John Elkington – "Triple Bottom Line": Explains the importance of environmental and social responsibility in the market mechanism.
9. International articles on state economic policy and regulation: scientific articles and studies on state intervention in the economy of countries and its effect on efficiency.
10. Statistics and economic indicators: economic reports of the World Bank, the International Monetary Fund and other international organizations, statistical indicators.
