What is competition?
Competition affects almost all areas of human activity - from physiological to political. With the help of it, development takes place, new ideas appear, products are improved. But at the same time, competition sometimes has a rather detrimental effect on activity. Let's understand what competition is.
First of all, it is worth noting that competition is an interdisciplinary concept, which means that it is used in various scientific fields. In general, competition from the Latin language translates as "to face", "to compete." In other words, it is a kind of struggle or rivalry between objects or subjects in a particular area.
What is competition in biology
In biology, competition is used most often in ecology and Darwin's theory. Thus, competition is called active competition between individuals of the same or different species for existence. In addition, under the competition in biology understand the fight against the adverse conditions of some factors of external and internal environment, as well as with common enemies of a certain type.
In addition, there is competition within a single species, for example, for the best female or place of residence, and also interspecific competition — the struggle of different species for resources or habitat.
What is competition in psychology
In psychology, the term "competition" is used as one of the strategies in resolving the conflict between the parties. Thus, competition means a certain form of relations in which the interests, goals or motives of participants somewhat contradict each other, at the same time the nature of the interests of participants cannot be changed. In other words, this means that with competition, participants are required to get the same thing in the end.
What is competition in law
Legal science also uses the term “competition.” Under it imply the rivalry or struggle of economic entities for the right to influence certain conditions of the turnover of goods in a particular commodity market.
However, most often the concept of competition is applied in the economy. It is in this social science that this term is used in a variety of meanings.
What is competition in the economy
In economics, the term "competition" is used quite often. In general, it is understood as a certain rivalry between people or organizations in achieving the same goals, results, and in obtaining benefits.
Economic competition is viewed from three main points of view:
- Competition - the degree or level of competition of people or organizations in the market;
- Competition - as an immediate mechanism of a market economy;
- Competition - as a criterion for determining the type of industry in the market.
In addition, there are various types of competition. All of them are quite closely related to each other, and sometimes they influence each other. In general, there are 4 types of competition.
- Functional - competition of a specific product on the market;
- Species competition - rivalry in price and quality of a product or service;
- Competition between organizations;
- Intra-industry and inter-industry competition.
In addition, there are three types of competition that are used in the general economy, that is, the section of science, which deals with general concepts and mechanisms.
Under this term in the economy understand this state of the market,in which there are a large number of buyers and sellers or manufacturers, and each of them occupies a relatively small share in the market and cannot demand its own terms of sale or purchase of goods. In addition, with this kind of competition, it is assumed that all information about prices, sellers and manufacturers is available not only within one place, but within the whole region and city. With perfect competition, prices are not dictated by producers and sellers, but by supply and demand.
It is worth saying that perfect competition cannot be achieved in any industry, this model is considered to be more likely the benchmark of the ideal in the market. However, economists agree that agriculture today is as close as possible to the model of perfect competition.
This is a type of competition where individual manufacturers or sellers are able to control the prices of products manufactured by them. This kind of competition is the most common. So, there are three main forms of imperfect competition - monopoly, oligopoly and monopolistic competition.
Oligopoly is a type of market competition in which only a small number of firms have power. Due to the fact that firms have no rivalry, prices are not dictated by supply and demand, but by the producers themselves. Examples of oligopolies are Boeing, Mercedes, Rostelecom and Airbus. A distinctive feature of oligopoly is a very small amount of substitute products.
Monopoly is a type of competition where only one large company and many buyers dominate the market. With a monopoly, the market is completely dependent on the influence of the manufacturer, which dictates prices, and also controls the entire industry. An example of a monopoly is Gazprom.
Monopolistic competition is the most common market structure today. It is characterized by many sellers and buyers, as well as a rather high number of substitute goods. In addition, with such a structure of the economy there is non-price competition. In other words, all products are unique in their own way and the buyer pays only for the brand, brand, the presence of some taste of the product, etc.
In addition, with monopolistic competition, it is quite easy to enter the industry, and there is also a high survival rate of organizations. With such competition, the manufacturer must offer a differentiated and different product in order to survive in the market.
As you can see, competition is a rather diverse concept. However, each of us lives in a highly competitive world, sometimes without even noticing it. I hope you now know what competition is in this or that area.
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