Business competition and rating Models of competition

Due to its characteristics , authors like Andrade , S. (1999); Samuelson and Nordhaus (2005 ); and Campbell
Stanley (2007); have identified four competency models


perfect Competition
This kind of competition is presented in a market where many companies covering the
which sell identical to those sold by the competition (tennis , clothes, furniture , etc.). products. for
all these companies , the number of buyers is equal and there is no restriction for new
Companies with identical products entering the market.

All companies in this type of competition are well informed about the prices of products
each of the companies involved in the industry.

monopolistic Competition
This kind of competition has a structure in which a large number of competing firms
that produce similar products, but with subtle differences. A product manufacturing a slightly
different from that of a competitor is called product differentiation and is used to
prevent future legal disputes.

Product differentiation gives the monopolistically competitive firm an additional unit of
competitive power in the market, as the company is the particular version of the good in question . Eg
in the market for sports courts, many companies operate their own version of the most comfortable footwear
when doing sport. Each of these companies owns the " original version " of the product and will
provide a particular brand .

oligopoly
This type of competition is a market structure in which a small number of competing
companies . For example , computer software companies and manufacturing of air transport.
The characteristics of this type of competition are :
• A large number of competitors.
• There is perfect information. All competitors know the price of its rivals and all buyers
know of offers from producers.
• The firm can sell your product all the amount you want without any risk.