Share This Article:

Economic Definition of nonprice competition. Defined.

Offline Version: PDF

Term nonprice competition Definition: A method of competition undertaken by firms in the same market (typically oligopoly firms) that involves advertising, brand-name promotion, support services, illegal activities, and everything but the price. Oligopoly firms are quite prone to nonprice competition due to the interdependence, especially such as that illustrated by the kinked-demand curve. Because oligopoly firms find difficulty competing through prices, they seek out alternative methods of competition, such as advertising or sabotage.

 

« consumption nondurable goods | nontariff barrier »

Permalink: http://glossary.econguru.com/economic-term/nonprice+competition

Alphabetical Reference to Over 2,000 Economic Terms