Model of Rivalry Among Firms

• Authors: Lipowski A.
• Languages of publication: PL

Abstracts

EN

The author presents model of rivalry among firms that constitutes a new theoretical concept in microeconomics. Using this model one is able to describe causal relation between competition and the dynamics of competitiveness of output. This faculty is absent in the equilibrium-based models of competition. The author builds his model on two, different from traditional approaches, assumptions: 1) the firm aims at the improvement/stabilization of the position of its products on the market; 2) customers, in their choices, are minimizing price/quality quotient among close substitutes. On the basis of this model the following sequence of dependencies results: definition of strategy - instruments of rivalry - purchases by buyers - effects of substitution - dynamics of competitiveness. Under conditions of demand uncertainty the firm attains better position if it is able to reduce this uncertainty in higher degree than its rivals.

Keywords

EN

CUSTOMERS’ EXPENDITURE; DEMAND UNCERTAINTY; NON-PRICE/QUALITY INSTRUMENTS; PRICE/QUALITY INSTRUMENTS; RIVALRY AMONG FIRMS; SUBSTITUTION EFFECTS

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Komitet Nauk Ekonomicznych PAN, Polskie Towarzystwo Ekonomiczne
• Journal: Ekonomista
• Year: 2008
• Issue: 3
• Pages: 293-327
• Document type: ARTICLE

Contributors

author

Lipowski A.

• A. Lipowski, Instytut Nauk Ekonomicznych PAN, ul. Nowy Swiat 72, 00-330 Warszawa, Poland

Identifiers

CEJSH db identifier

09PLAAAA058614