Model of interaction between producers and consumers through the main characteristics of the product: utility, quality, price, exchange value

Economic & mathematical methods and models
Authors:
Abstract:

This article offers a fundamentally new approach to solving the problem of economic development. The main reasons for the lack of progress in solving it are the discrepancy between the basic economic model and the realities of economic practice and the impossibility of solving the problem within the recommendations received in a narrow subject domain. The possible directions of development of economic science are considered in the study. We have substantiated why it is necessary to involve the experience of methodology as a science of activity and use of the practical recommendations which are already available in this area. The study set the task of establishing the role and the place of goods in structure of interaction of their producers and consumers. As a rule, modern studies consider the processes of production and consumption of goods within two models not connected with each other. The purpose of this study is to confirm the objective, indissoluble connection between the processes of production and consumption and the leading role of the later. We have used normative documents from the QMS (quality management system) field and the theoretical foundations of the system-wide disciplines. The system approach, methods of organization theory, methods of theory of organizational behavior were applied. We have assumed that it is necessary to study the efficiency of an economic organization, the formation of its structure and the behavior within the uniform model uniting both production processes and consumption of goods where the binding element of the model are the goods. The study has an objective and deductive character. The results of the study confirm our hypothesis and can be extended to all clusters of economic sciences. We have established the role of goods role as the element binding the activity of the producers and the consumers, offered an approach to forming the model for describing the processes of their interaction and mapped out the ways of defining the frame characteristics of goods with respect to "usefulness-quality" and "price-exchange value". It should be noted that the problem described in this work is insufficiently studied now and demands further research. The results of the study expand the understanding of the possible directions of improvement of the economic theory. The study poses several important problems, is substantially innovative and can be of interest to experts in the field of economy and related subjects.