Evaluation of the Products Supplied by an Economic Interest Group: Big, Small and Medium Business Approach
Keywords:
economic interest groups, benefit differentiation, cost differentiation, interior destructive factors, exterior destructive factors.Abstract
Taking part in the activity of an economic interestgroup and creating collective products, business enterprisessuffer material and non-material costs. Thereforethere arises the wish to use collective products without anyeffort to create them, i. e. to apply “parasitic” strategy.The product supply strategy is worked out according toParet’s effectiveness condition when big, medium andsmall enterprises take part in the activity of an economicinterest group.The article presents the results of the analysis of aneconomic interest group based on the research by foreigneconomist in the aspect of the benefit and costs in participatingin a collective activity and distributing economysubject according to economic capacity into big, mediumand small business enterprises.The article distinguishes the main factors conditioningthe stimulation and hindrance of the activity of an economicinterest group. In order to better define the effectivenessof the activity of an economic interest group, thefactors reducing the effectiveness of group activity areclassified into interior and exterior destructive factors.
