Journal of Applied Economic Research
ISSN 2712-7435
Inframarginal Analysis of Institute of Firm.
Petrenko D.S.
Abstract
Abstract. The paper considers using the microeconomic approach to a study of the influence of specialization and transaction costs on the division of labor that is refereed to in the foreign literature as inframarginal analysis. The subject of the research is a structure of the relations properties rights named a firm. The theme of the research is structures of the economic relations where economic agents can maximize their utility. The structures in turn determine the ways of distribution of the residual rights which determine the structure of the firm. The paper is based on widely known publications by European scientists about the theory of the firm, and the results of works of Australian and Chinese economists which have been given insufficient coverage in the domestic economic science. On the basis of the works of domestic and foreign authors, consistency of the conceptual framework of inframarginal analysis and the terminology of the domestic economic theory, mathematical programming and the theory of decision making is outlined. The author constructed three-dimensional visualization of the functions of maximum utility of economic agents for types of organizational structures which can be formed by economic agents for the achievement of the maximum utility. For the first time a graphic representation of the general inframarginal equilibrium allowing one to determine an optimum configuration for specific conditions of production is offered. The concept of the inframarginal steady firm is introduced. Parallels between methods of operations research and inframarginal analysis are drawn; similarities and distinctions are specified. The procedure of carrying out inframarginal analysis is structured in the form of a decision tree. The practical importance of the work is that in spite of the fact that the models offered in the research don't yield absolute quantitative results; the obtained conclusions can be used for complex assessment of the condition of the firm, together with traditional tools, such as analysis of financial and economic activities. The theoretical provisions can be used by universities for the improvement of the existing courses on the economic theory.
Keywords
Key words: institute of firm; inframarginal analysis; new classical framework; economic organization; general equilibrium; division of labor; theory of decision making.
About Authors
Petrenko Dmitriy Sergeevich – Candidate of Economic Sciences, Branch of the Central Bank of the Russian Federation in Sevastopol, Sevastopol, Russia (299001, Sevastopol, M. Dzigunskogo Street, 1/3); e-mail: zlobec@gmail.com.
DOI: http://dx.doi.org/10.15826/vestnik.2017.16.2.009
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