By edge competition one understands a competition with dominant factors an offerer and a small competitor in the economics ("edge competitors ").

Acceptance

The dominant factor offerer has certain cost advantages because of his size. Contrary to a monopoly situation the dominant factor competitor must consider however the small offerers with his price strategy, which take the market price in the long run as date.

Consequences

It is to be counted on a division of the market. The welfare is smaller than larger with complete competition, however than in a monopoly. Besides can be counted on certain product variety.

Articles in category "Edge competition"

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