THEORIES OF COMPETITION

Abstract

This study presents some of the most important theories about competition, its mechanism, its role, and its effects.The sequential competition makes a huge difference among strategic economic interactions, characterised by oligopolist competition, on the chain supply markets.It is presented as a form of networking, as a widespread game where competitors play different roles and each one of them follows the other. Inside competition struggle, equilibrium is depending on the utility.In this extensive game competitors play different roles and each one of them is subsequent to the next one.The attempt to explain the mechanism of competition must be understood through different theories of the past.The purpose of this study is making a comparison between competition theories of important economic authors, and also to try to establish wich model would be the best.As stages, I have tried to define competition, and then configure the role of competition according to market determinants.The competitive perspective depends on the theoretical approach that we apply to the market, and therefore on the competitive theory chosen for criticism. The research also has a hystorical perspective upon competition developement.

Keywords

• competition; the role of competition; creative destruction; invisible hand; cooperation.