OBSERVATION ABOUT COMPETITION

Competition is that kind of market that distinguishes itself for the presence of a great number of operators: none of them can influence, by his own decisions, marketing’s proceedings. Moreover, some specific qualifications are needed in order to have a real Competition, as follows:

1. plurality of operators: there is a great number of buyers and sellers and each of them acts as if the market’s price is an external information, independent of his own decisions;
2. free admittance: consumers and producers have to be free to approach marketing, if this is profitable for them;
3. Homogeneity of products: the product sold must be homogeneous, because if there are differences in quality, we have monopolistic competition;
4. Exhaustive information: all the operators have to be informed about marketing’s prices, in order to buy or sell on most favourable terms; only doing this is possible to be agreed upon one price for all the “units” sold;
5. Marketing simultaneity: it is necessary that trade exchanges are brought to effect after a negotiations’ phase. Negotiations are useful for operators in order to know better market’s conditions and manage this matter consequently.