Product quality level as an economical regulator

It is well-known that an economical system with fixed prices does not provide high quality of a product. The present work is devoted to the mechanism of setting the quality level in such an economy. We consider the interaction of economical agents both in the closed production system and within an individual link “supplier-consumer”. In the work we show that the quality level can be a flexible variable, which changes to make up for shortcomings of centralized planning and to certain extent performs the function of the market price keeping the balance of demand and supply.