Economic Efficiency of Hybrid Business Models under Algorithmic Market Competition

Abstract

This article examines the economic efficiency of hybrid business models in the context of the growing prevalence of algorithmic competition in markets, which is becoming increasingly relevant due to the deep digitalization of economic processes and the transformation of traditional mechanisms of competitive interaction. The aim of the study is to explore the theoretical foundations and to develop practical measures for assessing and enhancing the economic efficiency of hybrid business models under market dynamics driven by algorithms. Methods include analysis of the scientific literature to review current developments on the topic, as well as generalization and systematization to present the research findings.

Results. It has been established that hybrid business models involve the comprehensive integration of platform, product, and service components, enabling firms to operate simultaneously within multiple value creation logics and to adapt to rapidly changing market conditions. The influence of the expansion of algorithmic mechanisms on the behavior of both producers and consumers has been analyzed, shaping new demand patterns, pricing strategies, and competitive positioning through real-time data processing. It is noted that the efficiency of hybrid models largely depends on the level of algorithm integration, the quality of information resources, and firms’ ability to ensure their coordinated interaction within a unified digital ecosystem. It is substantiated that algorithmic competition creates both additional opportunities for productivity growth and significant risks associated with technological dependence, data asymmetry, and market concentration. It has been found that firms implementing advanced analytical tools and adaptive management approaches demonstrate higher levels of financial performance and resilience to external shocks. Based on the obtained results, it is concluded that improving the economic efficiency of hybrid business models requires a systemic approach focused on the integration of algorithmic technologies into core business processes, the development of data management systems, and the strengthening of strategic adaptability. The findings may be used to improve management practices and support decision-making under conditions of intensified algorithmization of market competition.