International Conference on Economic and Social Trends for Sustainability of Modern Society SOLUTIONS GAP IN SOCIO-ECONOMIC SYSTEMS

The paper deals with decision making theory and its peculiarities in economic systems. Attention is focused on horizontal and vertical gaps in decision making. The vertical gap in the decision is observed in public administration bodies, where decisions are not coordinated with the lower level. The activity of economic entities and government bodies is subject to this negative factor, which leads to failure to meet the set objectives. Public bodies are more confirmed by vertical gaps in their decisions, because higher bodies cannot accurately describe the situation on the ground. Horizontal gaps in decisions are a more complex economic category, where the problem arises from ignorance of the actions of other economic agents. The complexity of decision making in economic systems lies in the need for detailed elaboration, as well as in reducing the negative impact of the gap on economic agents. Solution gaps are always a topical issue in complex systems. Economic agents face destructive actions in their activities, in which there is no information or solution for use on the market. Unprocessed legislative acts have been adopted, and the mechanism of action is not prescribed for economic agents. The activity of an economic agent is affected by the gap in decision-making, which leads to a decrease in the efficiency of decision-making at all levels of the state and interaction of economic agents with each other.