Share This Article:

Economic Definition of competition. Defined.

Offline Version: PDF

Term competition Definition: In general, the actions of two or more rivals in pursuit of the same objective. In the context of markets, the specific objective is either selling goods to buyers or alternatively buying goods from sellers. Competition tends to come in two varieties -- competition among the few, which is market with a small number of sellers (or buyers), such that each seller (or buyer) has some degree of market control, and competition among the many, which is a market with so many buyers and sellers that none is able to influence the market price or quantity exchanged.

 

« compensation of employees | competition along a line »

Permalink: https://glossary.econguru.com/economic-term/competition

Alphabetical Reference to Over 2,000 Economic Terms