Alternative Theories Of Market And Applying Them To Regulatory Policy

The main methodological approaches to the analysis of the market and, correspondingly, descriptions of market laws and principles for creation of a competitive environment have been researched. According to the authors, the problem is first of all in the absence of a correct methodology and theory of description of the modern market and resulting from it enability to develop an efficient policy of regulations. The solution to this problem requires an adequate choice/specification of a theoretical base from the list of those known, or formulation of a new one shall those existing turn to appear inadequate. For this purpose there have been researched some leading sources, presented in the world economic literature. There have been proved the principality of the main, synthesized postulates in the classic political economy, the theory of imperfect competition and neo-liberalism in the creation of a modern market theory and a possibility to regulate it, there have also been shown a restriction of other methodologies and theories. There has been revealed the determinant role of the theory of imperfect competition in the formation of the contemporary models of the market and market regulation. A direct relation between market theories and the content of the corresponding regulatory policy has been shown. The perspectives of regulations as for the ideology of protection and development of an imperfect competitive environment, especially in countries with transition economy have been emphasized. The issues of the modern markets, their disfunctionality as well as the possibilities and perspectives of correct regulation have been demonstrated with the dairy industry of Ukraine taken as an example. There has been emphasized that the creation of a new version of the market theory adapted to the conditions of the ХХІ century must be build on the revision of the content potential of the imperfect competition theory, and this is exceptionally important for markets with the economy in transition. The main issue therefore is to determine the desirable for the society parameters of the imperfect competition, as well as social and economic expenses which are necessary for the achievement and protection of those parameters, which determines the perspectives for further researches.