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The paper is devoted to modeling a pricing policy of competitive firms in a “closed” economy framework.
Abstract
Purpose
The paper is devoted to modeling a pricing policy of competitive firms in a “closed” economy framework.
Design/methodology/approach
The proposed model can be regarded as an analog to CGE model and is based on the intersectoral balance methodology incorporating linear demand functions for goods and services.
Findings
By performing different model experiments, we show that a certain degree of competition can bring more profit to all competing firms, than in case of complete absence of such competition, what is also supported by empirical investigation. This finding implies that monopolies may perform worse than competitive firms, what contradicts with the modern provisions of economic theory, stating that monopoly is the most lucrative type of market structure for a producer. The discovered effect occurs due to the aggressive pricing policy, adopted by monopolies, spurring up the inflation spiral, which is most obvious if monopolies are strongly interdependent in terms of production matrix. This inflation spiral drives prices too high, what negatively reflects on firms’ costs and, consequently, results in monopolies receiving less profit.
Originality/value
The proposed model can also be useful for understanding and assessing various economic consequences after different external or internal shocks, what is especially crucial when conducting monetary or fiscal policy.
Details
Keywords
This study aims to explain and illustrate the character of Russian systems thinking and to show how it is different and similar to traditions in the West. This study’s second aim…
Abstract
Purpose
This study aims to explain and illustrate the character of Russian systems thinking and to show how it is different and similar to traditions in the West. This study’s second aim is to describe the contributions of some Russian scientists to developing systems thinking and the theory of evolution. This study introduces the predecessors of Charles Darwin in Russia, both supporters and critics of his ideas, as well as scientists who have made similar contributions to the development of systems thinking, particularly Vladimir Vernadsky and Alexander Bogdanov.
Design/methodology/approach
Philosophical and theoretical comparisons. In the Russian intellectual tradition, the terms “Russia” and the “West” are likely codes for signifying fundamental philosophical questions about the universality of thinking and culture. The term “West” means universal, rational truth without taking into consideration any differences in life and cultural practice. The term “Russia” means impossibility of such a universal truth and a necessity to look for solutions on the level of life, not only on the level of rational thinking.
Findings
Paying attention to differences in approaches to systems and cybernetics and the theory of evolution will enrich the further development of systems sciences in Russia and the West. The paper examines the philosophical underpinnings of science rather than just testing or extending an existing theory. The result is better mutual understanding among scientists with different backgrounds.
Originality/value
This study suggests new avenues for research and expands the range of conceptual possibilities. It improves mutual understanding among scholars and countries. Also, it adds to the topics discussed within the field of systems and cybernetics and the theory of evolution.
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The purpose of this paper is to challenge Cold War binaries, seeking a more nuanced understanding of popular experience of change in the Soviet Union’s last decades. This was a…
Abstract
Purpose
The purpose of this paper is to challenge Cold War binaries, seeking a more nuanced understanding of popular experience of change in the Soviet Union’s last decades. This was a period of intensive modernization and rapid transformation in Soviet citizens’ everyday material environment, marked by the mass move to newly constructed housing and by changing relations with goods.
Design/methodology/approach
To probe popular experience and changing meanings, the paper turns to qualitative, subjective sources, drawing on oral history interviews (Everyday Aesthetics in the Modern Soviet Flat, 2004-2007).
Findings
The paper finds that qualitative changes took place in Soviet popular consumer culture during the 1960s-1970s, as millions of people made home in new housing amid the widespread media circulation of authoritative images representing a desirable modern lifestyle and modernist aesthetic. Soviet people began to make aesthetic or semiotic distinctions between functionally identical goods and were concerned to find the right furniture to fit a desired lifestyle, aesthetic ideal and sense of self.
Research limitations/implications
The problem is how to conceptualize the trajectory of change in ways that do justice to historical subjects’ experience and narratives, while avoiding uncritically reproducing Cold War binaries or perpetuating the normative status claimed by the postwar West in defining modernity and consumer culture.
Originality/value
The paper challenges dominant Cold War narratives, according to which Soviet popular relations with goods were encompassed by shortage and necessity. It advances understanding of the specific form of modern consumer culture, which, it argues, took shape in the USSR after Stalin.
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