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'''Fair [[competition]]''' term describes a situation on [[market]] when market is free for all and all of subjects making actions in this [[business environment]] are equal, free from acts of [[unfair competition]]. Businesses using basic factors like '''[[quality]]''' and focusing on own development and strategies to get customers '''instead of actions''' which are targeted to destroy competitor's '''market [[image]]''' or '''[[economic situation]]'''<ref>S. Vagstad 1995, 283-307</ref><ref>D. McGowan 1998, 1173</ref>. | '''Fair [[competition]]''' term describes a situation on [[market]] when market is free for all and all of subjects making actions in this [[business environment]] are equal, free from acts of [[unfair competition]]. Businesses using basic factors like '''[[quality]]''' and focusing on own development and strategies to get customers '''instead of actions''' which are targeted to destroy [[competitor]]'s '''market [[image]]''' or '''[[economic situation]]'''<ref>S. Vagstad 1995, 283-307</ref><ref>D. McGowan 1998, 1173</ref>. | ||
==Market environment== | ==Market environment== | ||
Revision as of 22:38, 22 May 2020
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Fair competition term describes a situation on market when market is free for all and all of subjects making actions in this business environment are equal, free from acts of unfair competition. Businesses using basic factors like quality and focusing on own development and strategies to get customers instead of actions which are targeted to destroy competitor's market image or economic situation[1][2].
Market environment
Being a company on the market focused on development and getting more and more customers and is usually a tough nut to crack. Business should have specific strategy to entry and keep on the market, but sometimes it is impossible to develop if company's position on marketplace and size isn't big enough[3].
There are a few systems which can be experienced on market, for example:
- Perfect Competition,
- Monopoly,
- Oligopoly,
- Monopolistic Competition,
- Monopsony.
Fair competition refers to keeping a market open for any other players. There wouldn't be applied strategies like predators pricing, which is an market action, when the biggest players such sacrifice some amount of money and cash flow by severely under-pricing their products as long as competitors will not be able to maintain basic company expenses. This situation favors more experienced company and destroys any chances to entry the market for other competitors[4].
By the definition, fair competition allows become strong leader, but not at the expense of others. Competitive factors are usually quality, price and customer service. Market field is free from acts of unfair competition which can be harmful for other subjects participating in it. Moreover, companies are not imposed to agrees to fair competition system but freely making marketplace a fair environment to compete. All over the time fair competition becoming more and popular and entrepreneurships respect these rules also caring for their own image[5].
Footnotes
References
- Benhamou, F. (2015). Fair use and fair competition for digitized cultural goods: the case of eBooks. “Journal of Cultural Economics”, 39(2), 123-131.
- Hu, J., Goodman, E., Seo, K., Fan, Z., & Rosenberg, R. (2005). The hierarchical fair competition (hfc) framework for sustainable evolutionary algorithms. . “Evolutionary Computation”, 13(2), 241-277.
- Ledgerwood, J., Earne, J., & Nelson, C. (Eds.). (2013). new microfinance handbook: A financial market system perspective. . "The World Bank", 15-48.
- McGowan, D. (1998). Free contracting, fair competition, and article 2B: Some reflections on federal competition policy, information transactions, and aggressive neutrality. . "Berkeley Tech". LJ, 13, 1173.
- Sartori, N. (2013). The European Commission Vs. Gazprom: An Issue of Fair Competition Or a Foreign Policy Quarrel? . “Istituto affari internazionali”, 5.
- Vagstad, S. (1995). Promoting fair competition in public procurement. “Journal of Public Economics”, 58(2), 283-307.
Author: Krystian Prorok
