Individual Economic Agents Research Articles

Playful exercise focused on microeconomics, applying gamification: “Rompeconomía”

Microeconomics is a branch of economics that focuses on the behavior of individual economic agents, such as consumers, businesses, and workers. Coupled with this, it analyzes how they interact in the market to determine supply and demand, prices and the allocation of resources. It is a fundamental tool to understand the economy and how it works in daily life. Based on this, the development of a recreational activity was carried out in order to strengthen theoretical knowledge, as well as the different market structures, in Industrial Engineering students from the Industrial University of Santander who are taking the subject "Economic environment”. To develop the activity, we worked in small groups through phases, which consist of identifying necessary aspects to prepare them based on a case study, focused on a market structure, which they must analyze in detail. This research was carried out using the research - participative action, (IAP) methodology; which allowed the identification of recreational activities to develop skills in students as economic agents, while they are instructed in aspects such as market studies, microeconomics and group work. Gamification as a tool for learning constitutes a teaching alternative to the challenges faced by higher education in contexts where the way of obtaining, processing and transmitting knowledge is transformed.

Modern branding in the digital economy

The article analyzes the impact of the dominant trends of qualitative changes in the modern economy on fringe formation. The trends of digitalization and personalization of nanoeconomy subjects are considered as such trends. Aspects of the digital economy and informatization are studied. Digital branding helps to establish a meaningful connection with the target audience, using a unique offer to highlight the brand and its distinctive competitive advantages. Innovations that increase the intensity of information flows shape and promote a digital brand. It has been established that modern branding is influenced by the relations born within the nanoeconomy. For example, a brand is an institution that depends on nano-actors, including owners, producers, and consumers. The institution of property implies that a person with savings can invest in a business that can develop its brand. A brand is subjective and reflects an individual approach to a product (good or service). The owner initiates the brand and becomes a reference from this owner to various consumers and business customers. The manufacturer is responsible for producing a particular product when the production conditions dictate the quality of the product or service, and the brand image is formed. The latest digital technologies affect economic processes, including the efficiency and stability of business processes. Digital technologies can improve the efficiency of targeting marketing strategies and increase the compliance of goods with consumer expectations. At the same time, it has been shown (proved) that the increase in the efficiency of economic processes under the influence of consumer activation is explained by the titles of the modern science of nanoeconomics. Nanoeconomic systems differ in peacetime and during military operations. Since Ukraine is going through difficult military times with aggression from Russia, it is necessary to consider the specifics of nanoeconomic development in these conditions and the post-war period. It is determined that the mental construction of a modern brand should include, in addition to product characteristics, elements of both digitalization and aspects of the behavior of individual economic agents, as opposed to the traditional neoclassical paradigm. Keywords: brand, trademark, nanoeconomy, digital communications, branding, brand management.

Consumer choices under new payment methods

This study suggests a payment portfolio model that includes new payment methods that have emerged from the development of cryptocurrency markets and central bank digital currencies (CBDCs). Our model analyzes the optimal payment choice for consumers under various macroeconomic conditions. We determine that an individual economic agent chooses payment methods under specific conditions by incorporating policy interest rates on CBDCs and stablecoins used on cryptocurrency exchanges. We analyze the impacts of CBDCs and stablecoins on the choice of whether to use cash or deposits. We also examine how the agent changes her portfolio compositions in response to exogenous macroeconomic policies. If a government replaces cash with a CBDC, the convenience of digital currency would not affect consumer choices. The higher the government’s interest rate on CBDCs, the more consumers will use CBDCs than deposits.

ОЦЕНКА ОПТИМАЛЬНОСТИ СЫРЬЕВЫХ ЗОН ПРЕДПРИЯТИЙ ЧЕРНОЙ МЕТАЛЛУРГИИ РОССИИ В ОБЛАСТИ ЗАКУПОК МЕТАЛЛОЛОМА

The article discusses the features of the distribution of ferrous scrap between the main metallurgical enterprises of the Russian Federation. It is revealed that the current configuration of the actual raw material zones of metallurgical enterprises of the Russian Federation is due to the uneven nature of scrap sources and end users, the export orientation of regions and the established institutional structure of regional ferrous scrap markets in the post-Soviet period. Based on the use of geoinformation technologies, the optimal configuration of raw material zones of metallurgical enterprises in the field of procurement of ferrous scrap has been determined. To assess the optimality of raw material zones of enterprises, two methods are proposed in the work – cartographic and economic. As a result of a comparative analysis of the calculation results, it was revealed that the economic method best evaluates the optimality of raw material zones in connection with the best consideration of the features of territorial schemes for the movement of ferrous scrap between producers and end consumers. According to the economic method, the metallurgical enterprises of the Ural metallurgical base have a low degree of optimality of raw material zones and, as a result, large losses in financial terms, mainly due to the extremely high concentration of metallurgical enterprises, small/medium losses have enterprises in the north, center and east of the country, where the demand for raw materials is a limited number of enterprises remote from each other. In the final part of the article, recommendations are presented to increase the economic efficiency from optimizing the distribution and the use of ferrous scrap for individual economic agents and the economy as a whole.

АНАЛІЗ КОНКУРЕНТНОГО СЕРЕДОВИЩА ЛОГІСТИКИ ЕКСПОРТУ ЗЕРНОВИХ ВАНТАЖІВ З УКРАЇНИ

Modern trends in the development of grain exports from Ukraine are analyzed in the article. This can be explained by several factors. Firstly, our country has excellent geographicconditions for growing cereals. Secondly, the volume of production goes beyond the scope of only the domestic market of the country. Thirdly, from the point of view of the logistic structure, the Black Sea ports are well suited for shipping grain to China, Egypt, Thailand, Israel, and the United Arab Emirates.The main goal of the work is to analyze and identify problematic aspects of the competitive environment for the logistics of exportgrain cargo from Ukraine.An analytical review of the competitive environment for the logistics of exporting grain cargo from Ukraine has been carried out. The competitive environment of grain export logistics is the result and conditions of interaction of a large number of entities (grain traders, transport companies, ports, port terminals), which determines the appropriate level of economic rivalry and the ability of individual economic agents to influence the overall market situation. It is important that the competitive environment is formed not only and not so much by the actual subjects of grain delivery and transshipment of grain cargoes, the interaction of which causes rivalry, but, first of all, by the relations between them.Ukraine confidently holds key positions in the world grain market. The Ukrainian grain market is export-oriented, which ensures the receipt of foreign exchange earnings into the state treasury. Most of the grain cargo is exported through port terminals, which requires the coordination and efficiency of grain traders, linear elevators, transport and terminals.However, the logistics schemes for the delivery of grain in our country require partial modification. Improving the competitive environment and solving the problems of supplying grain for export, through the seaports of Ukraine, should be seek in improving the logistics infrastructure, by using inland water transport with road transshipment of goods. The use of this direction will allow supersize vessels to enter the Ukrainian seaports, and will increase the competitiveness of grain exports from Ukraine. Keywords:exporters, grain crops, competitors, grain terminals, transportation, ports

Assessment of the Attractiveness of Large Russian Cities for Residents, Tourists, and Business

The article proposes an approach to assessing the attractiveness of large cities of the Russian Federation for residents, businesses, and tourists. As part of the development of this approach, particular parameters of the attractiveness of cities for individual economic agents were determined and an integral indicator was calculated. The hypothesis of the study is based on the fact that high positions of a city in a particular rating do not always guarantee its leadership in other areas; however, in general, the differentiation of places in case of a particular city is more inherent to ratings outsiders than to leading cities. Systemic analysis; factorial, statistical, structural, and dynamic analysis; classification, correlation, and regression analysis; and economic and mathematical modeling were used as research tools. The approach was tested on data for large Russian cities. Both sets of particular indicators characterizing certain areas of research and the approach to forming an integral indicator of the level of attractiveness of cities necessary for a generalized assessment have been determined. The presented results generally confirm the proffered hypothesis. In modern conditions, public authorities should pay special attention not only to the development of individual cities, but to the integrated development of the spatial framework of a territory where cities play a decisive role. The proposed approach to assessing the level of attractiveness of Russian cities makes it possible to obtain logical meaningful results that can be applied to solve problems in these areas.

Experimental Trends in Corruption and Tax Evasion

Nowadays, among the main social concerns of the Spanish society we find corruption and fraud, which occupy the second place in terms of relevance according to recent data. The traditional neoclassical economic approaches concentrate on the construction of economic models that aim to explain the causes of both social phenomena. However, in the last decade several studies have emerged focusing on a behavioral approach to improve the explanatory capacity of such models. In this sense, economic experiments have been implemented to examine, from a different perspective, the determinants of corruption, on the one hand, and fiscal fraud, on the other. Few empirical studies relate both social problems, especially when we refer to the tax evasion of individual economic agents. Therefore, this paper aims to review and deepen the understanding of the factors that determine and relate tax evasion and corruption, from an experimental approach.

ПРЕДПОСЫЛКИ, ФАКТОРЫ И ВЛИЯНИЕ ГЛОБАЛИЗАЦИИ НА РАЗВИТИЕ СОЦИАЛЬНО–ЭКОНОМИЧЕСКИХ СИСТЕМ

Considering globalization as a modern phenomenon of society development is impossible without studying its influence on the development of socio–economic systems, which determines the need to study the prerequisites and factors of globalization itself. The article describes the scientific discussion on the definition of the stages of globalization and suggests the author's approach to their definition, which assumes the presence of a number of stages. The proposed study, based on the analysis of various theoretical approaches, identifies specific factors of globalization, grouped into seven groups: geopolitical factors, economic factors, technological factors, social factors, humanitarian factors, cultural factors and environmental factors. The authors of the article proceed from the assumption that these groups of factors characterize the area of manifestation of the influence of globalization on the development of socio–economic systems, while this influence can be both positive and negative in nature and is manifested in relation to both one and different socio-economic systems. According to the authors, the multidirectional influence of globalization can be manifested both in relation to the economy as a whole and individual economic agents. In general, positive manifestations of globalization at the macroeconomic level can be manifested by negative trends at the level of specific markets and business entities. The article notes the systemic nature of the influence of globalization processes on the development of socio–economic systems, the diverse and "all-pervading" nature of which leads to the transformation of these systems, their adaptation to changing conditions, which, in turn, leads to the acquisition or loss of any system characteristics.

Preferences, Altruism, Technocracy, & Power Grabbing: Cumulative Effects on Equilibriums induced by Ability and `Doubtfulness'

Suppose an economy within which rational expectations equilibriums (REE) are predicated on the distribution of ability, and the extent to which economic agents are doubtful (`doubtfulness') as to true realizations of their ability. Let a `societal REE' denote an REE that, simultaneously constitutes a dominant equilibrium for each of individual economic agents, and society. This study provides formal theoretical evidence that cumulative layering of each of risk preferences (risk aversion or risk seeking) and heterogeneity as to altruism on economic agents does not induce any alterations to societal REE that are predicated on ability and doubtfulness. Layering of heterogeneity with respect to preference for a (professional) Technocracy on all of the preceding factors induces a societal REE that Pareto Dominates all preceding REE. Suppose technocrats that are appointees of politicians (`political technocrats') coexist with professional technocrats and do not practice `power grabbing', that is, arrive at policy decisions on basis of scientific, as opposed to political merits of alternate courses for action. In presence of stated coexistence, there is arrival at a societal REE, which Pareto Dominates the societal REE that is induced by presence only of professional technocrats. In this respect, presence of political technocrats who act on scientific merits induces unilateral increase to incomes of professional technocrats. In the societal REE in context of which political technocrats practice power grabbing, resources of society are sub-optimally directed away from efforts at generation and implementation of innovations. There is arrival then at an economy that revolves around government. Consistent with sub-optimality of a `power grabbing' economy, while government consists of three-tenths of the workforce in context of political technocrats who act on scientific merits, introduction of power grabbing induces allocation of five-sixths of the workforce to the government sector.

Parameterizing 'Curiosity' as Measure of Innovation Potential of Individual Economic Agents

Parameterizing 'Curiosity' as Measure of Innovation Potential of Individual Economic Agents

Post-Keynesian approach to budget balance with regard to the financial balances of economic sectors

In the article, the authors investigate the reasons for the fallacy of the presumption that the ‘excessive’ level of public debt is harmful to economic growth, and that austerity measures should be applied whenever public debt is too large. We also considered the approach of the advocates of “functional finance” proposed by Abba P. Lerner. Our research was based on the Balance Mechanics developed in the middle of the XXth century by the German economist Wolfgang Stützel. On this ground, the authors examined the financial balances of individual economic agents, a group of economic agents, and macroeconomic sectors of the economy. The authors make an important conclusion that follows from the macroeconomic identity: the dynamics of public sector behaviour cannot be considered in isolation from the behaviour of the private and external sectors, as changes in financial balances in these sectors are interrelated and interdependent. It follows from the macroeconomic identity that some policy objectives in one sector (for example, a constant public sector surplus) are unattainable or extremely difficult to achieve (regardless of the scale of economic adjustments used: devaluation, changes in interest rates or total income, etc.), without taking into account the wishes of other sectors. Therefore, it is extremely destructive to continue policies aimed at achieving incompatible desires for it inevitably leads to a crisis in the economy.

Identity in Economics: A Review

While identity in the economics discipline is sometimes (incorrectly) attributed to ‘identity economics’ as developed by George Akerlof and Rachel Kranton in their paper Economics and Identity (2000), other fields in economics, including the economics of discrimination, and the economics of institutions, have paid close attention to both group membership, as well as the ‘labels’ attached to individual economic agents. Indeed, as shall become apparent throughout the chapter, such scholarship, including Becker (1957), Arrow (1972b, 1973), and Landa (1981) have preceded the work of Akerlof and Kranton. This review paper seeks to outline these literatures, as well as briefly describe some of the other social science scholarship from which ‘identity’ in the economics discipline has been derived.

Growth Potential of the Market Force of Intermediary Structures

The aim of the study is to determine the extent and prospects development of market potential of intermediary structures using an example of waterway transport enterprises. Economic liberalization, development of international economic activity, fragmentation and distantness of suppliers and buyers as preconditions for development of intermediary business structures are determined. The main factors hindering the development of intermediary activities are identified, for instance, imperfect regulatory framework, insufficient intermediary’s professionalism, insecurity from intermediaries, low level of responsibility to counterparties, general distrust. Transport companies, in particular, the waterway transport enterprises, are identified as intermediaries that have a significant influence for development of individual economic agents and economic systems. Prospects for the development of sustainable mutually beneficial economic relations or the mutual benefit, the availability of effective information flow, a clear definition of roles, rights and obligations of the involved parties, mutual coordination of behaviour of intermediary structures and clients defined as the main conditions for development of effective interaction of intermediary structures of water transport and clients. In the matter of further studies, attention should be paid to improvement of strengthening mechanism for the responsibility of intermediary structures and clients.

Sustainable Development Concepts as a Response to Expectations of Modern Business Management

The interactions among individual economic agents require some regulations to hedge the risk of business activity. This paper examines the general equilibrium theory, backgrounds of system analysis and optimal control to show that these regulations present the mechanism of balanced management of economic processes at various economic level (enterprise, region, country). The study shows that sustainable development is self-regulatory and adaptive effort to remain on the market under the condition of reliable cooperation. Furthermore, by investigating the hierarchy of the business management systems, the conceptual and mathematical models of the mechanism for sustainable development are built and illustrated.

Evolution of the Content of the Market Category at Different Stages of its Development

The “market” concept is one of the key concepts of modern economic theory, as well aseconomic practice. It plays an exceptional role in understanding and explaining the properties and patterns ofbehavior of not only individual economic agents, but also economic systems in general. At the same time, up to the present time there is no unified, unconditionally accepted by all researchers definition of the market category, there are about two hundred of which. Such a multitude of definitions, most of which have anarrowly specific, partial character and are applicable only for individual cases, attests in the first place to the extremely high complexity and ambiguity of the content of the market category, as well as its large information capacity. Allthiscertainly speaks about the relevance of the chosen research topic. The essence and content of the market concept at various stages of economic evolution are analyzed in the paper; author's interpretation of theessence of the market and the main components of its content is offered. Among these components, the mostimportantare the freedom of entrepreneurship, competition and market infrastructure, the individual elements of which are usually identified with the market. The authors analyze the subordination of market elements and their interactionand show that many other market elements (the next order) can be logically derived from the main constituents of the content, resulting from both their interaction with each other and the response to their interaction with the continuously developing external environment.

Rationality in Decision-Making Within Inter-Organisational Networks

Мережева структура є природною фазою в еволюції організаційних форм. Організаційна форма мережі – це сукупність взаємопов’язаних структур і технологічних елементів, тобто окремих економічних агентів, культурних і соціальних цінностей, які влаштовують міжорганізаційні відносини в певному порядку і змушують мережеві процеси функціонувати в режимі, подібному до системного. Ефективна спільна робота в міжорганізаційних мережах свідчить про необхідність спільної мети, яка сприймається як критичний фактор спільної діяльності. У статті досліджується раціональність прийняття рішень для міжорганізаційних мереж. Аналіз поведінки в міжорганізаційних мережах, які складаються з таких агентів, як фірми, підприємці, державні органи, наукові центри, доводить, що групові рішення не завжди є оптимальним методом досягнення мети. Існують певні завдання та обставини, коли авторитарний підхід до вирішення проблем є більш розумним. У ньому аналізується формалізована модель спільного вибору, переважаюча практика та раціональність прийняття групових рішень для досягнення стратегічного балансу в мережі. Дослідження підсумовує ключові переваги та недоліки у випадку, якщо рішення приймається групою

Diversification vs. Specialization in Economic Development: A Comment

Participation in the modern, globalized economy necessarily entails some degree of economy-level specialization in terms of the relative intensities of activities, since all economies – and especially developing economies – are small relative to the global economy as a whole. At the same time, it has been firmly established that development involves massive diversification of economic activities – including of exports. Accordingly, there is a complex interplay between diversification and specialization in the development process. For economic policy formulation, the issue is how much weight to give to diversification versus to specialization? This commentary argues that specialization (by individual economic agents) will happen naturally in an environment characterized by expanding diversity at the economy level. By achieving diversity at the system level, policy enables specialization at the individual agent level.

Testing of Macroeconomic Lying Hypothesis: French Industry Case

The research is intended to analyse the problem of informational asymmetry in macroeconomic level. The authors state that individual economic agents (firms) could lie about their economic situation in public surveys, so that their lying could be detected on macroeconomic level. To demonstrate the possibility of such hypothesis the method of simple regression was used. The regression was calculated in clustered data, where the discrepancy between expressed expectations of industrial firms and their immediate acting through the new orders in manufacturing is taken as a criterion to detect the “lying” or “true” statistic periods. The research was made on the basis of French industry's data and revealed that firms could lie in the periods here named as “Lying optimism”. The possibility to detect the “lying” moments on macroeconomic level could be used for the forecast of business cycle turning points, in financial market, as well.

A micro spatial analysis of firm demography: the case of food stores in the area of Trento (Italy)

The potential offered by the increasing availability of micro-geographic data is tremendous and still largely not exploited. In this paper, we propose a new methodology to study the spatial dynamics of firm demography making use of such rich source of information. Exploiting the techniques of stochastic spatial point processes (Diggle, Statistical analysis of spatial point patterns, 2003), it is indeed possible to model the firm birth, growth and death explaining the behavior of the individual economic agent. We consider the spatial distribution of the economic activities as the result of a dynamic process occurring in space and time, and we model the micro-spatial patterns as single realizations of marked space–time survival point processes (Rathbun and Cressie, J Am Stat Assoc 89:1164–1174, 1994). Within such a methodological framework firms are created at some random location and some point of time and then operate, grow, and attract (or repulse) the localization of other firms in their neighborhood. The proposed model is fitted to some empirical data on firms’ locations sourced from the ASIA harmonised archive of the Italian National Institute of Statistics. The empirical analysis reveals the presence of local competition behavior in firm creation among small retail food stores, thus shedding light on the phenomena of firm demography.

REGIONAL INEQUALITIES IN THE EUROPEAN UNION AND THE ROLE OF INSTITUTIONS

This research extends the literature on regional inequalities in the European Union in two directions. First, it confirms the importance of institutions for regional inequalities among 18 EU member countries, and second, indicates which dimension of the institutional quality is important by using the six dimensions of the Worldwide Governance Indicator. The results support standard “rules of engagement” that reduce transaction costs by lowering uncertainty and facilitating the mutual trustworthiness of individual economic agents that spread equally among regions in specific countries. In addition, we interpret empirical evidence to determine that institutions also shape regional inequalities indirectly through political channels.