competition

In economics, rivalry in the marketplace between different business organizations, usually competition for custom between those who have the same commodities to dispose of. Firms can make their products competitive in price, quality, availability, and delivery dates, for example, or compete through advertising.

In a market where perfect competition is operating, it is assumed that all companies produce identical products and compete only on price. In markets characterized by an oligopoly and other forms of imperfect competition, goods are branded and there is much more emphasis on nonprice competition such as advertising. In a monopoly, where there is only one producer, there is no competition. Governments attempt to increase competition through competition policy.