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The purpose of the chapter is to study dynamics of development of economic conflicts and to develop a conceptual model of conflict of socio-economic system as an analog to the model of economic cycle.

The author compiles and analyzes the existing conceptual static model of conflict of a socio-economic system. The theoretical basis of the research includes the works of modern authors that reflect provisions of the theory of cycles and devoted to cyclic fluctuations of socio-economic systems. The methodology of the chapter includes the method of dynamic modeling of the process of development of socio-economic systems and the method of formalization (graphic presentation of the obtained results and conclusions). Also, the author uses the complex of general scientific methods within the systemic approach – induction, deduction, analysis, and synthesis.

It is substantiated that the existing conceptual static model of economic conflict, which treats it as a non-recurrent phenomenon in socio-economic system, contradicts its dynamic nature. Instead of this, similarly to the model of economic cycle, a conceptual dynamic model of conflict of socio-economic system is developed, which treats economic conflict as a process that develops according to a certain algorithm and is constantly repeated.

The offered conceptual model of conflict of a socio-economic system as an analogue of the model of economic cycle allows specifying the methodology of studying economic crises, which are manifestations/examples of economic conflicts. This model emphasizes the dichotomic nature of economic conflict (its probable negative or positive consequences), which allows for more precise treatment of economic crisis – which is usually considered to be a negative phenomenon. According to the offered model, crisis is not a phase of economic cycle but socio-economic process that is characterized by cyclic fluctuations. As is expected, the developed model will allow describing the practice of development of modern socio-economic systems with higher precision.

The purpose of this chapter is to develop a new perspective model of well-balanced information economy.

The methodological tools of this work are based on application of the method of comparative analysis for comparing the old and the new model of information economy, modeling of socio-economic systems, simplex-method as an algorithm for solving the optimization task of linear programming, related to improvement of the conceptual model of information economy, and the method of formalization for graphical presentation of a new model of information economy.

The developed and presented author’s perspective model of information economy envisages balancing in four main directions: infrastructural possibilities and readiness for their practical usage by society and business; state regulation and market self-management; existing and new information; and external information exchange. Despite the clarity and strictness of conceptual settings, the new model is peculiar for increased flexibility and adaptation to the peculiarities of the socio-economic practice of economic system. Thus, the new model of well-balanced information economy allows overcoming all drawbacks – logical mismatches and contradictions – of the existing (old) model of information economy.

Due to optimization of the conceptual model, its practical implementation in economic activities of modern socio-economic systems becomes possible – as a result of which, with accumulation of experience, it will be possible to assess true value of the idea of information economy’s formation for humanity and the global economic system.

This chapter will address (only) one issue from the 1960s substantivist/formalist debate, the treatment of choice. The substantivists rejected the economic universality of the neoclassical axioms of choice under scarcity and the isolated and selfish nature of the choice process. A common formalist response was that their model based on these axioms could be modified to include whatever specific conditions economic choice was being made under. This chapter rejects that claim, based on a consideration not included in the debate. It is argued that the mathematical structure of the standard formal neoclassical model prevents it from incorporating the substantivist criticisms, and that to modify it in accord with these criticisms would necessarily result in a model that is outside the neoclassical approach to economic decision-making.

“It should also be noted that the objective of convergence and equal distribution, including across under-performing areas, can hinder efforts to generate growth. Contrariwise, the objective of competitiveness can exacerbate regional and social inequalities, by targeting efforts on zones of excellence where projects achieve greater returns (dynamic major cities, higher levels of general education, the most advanced projects, infrastructures with the heaviest traffic, and so on). If cohesion policy and the Lisbon Strategy come into conflict, it must be borne in mind that the former, for the moment, is founded on a rather more solid legal foundation than the latter” European Commission (2005, p. 9)Adaptation of Cohesion Policy to the Enlarged Europe and the Lisbon and Gothenburg Objectives.