In order to comprehend the ontological construction below, please refer to the respective posts for all notions in italic.
Multiple suppliers and buyers of the commodities configure the market as competitive market. The competitive market features, on one hand, numerous provides of economic goods, who are unable to restrict each other out of the market and compete for sells, and on the other hand, numerous consumers, who are unable to restrict each other out of the market and compete for acquisition of the goods available. As a consequence, no producer is capable to determine the quantities of commodities, which are supplied, and no consumer is capable to determine the price of the commodities, which are demanded. The competitive market is organised by the principles of monopolistic (monopsonistic) competition and perfect competition.
Historical Backdrop
• ADAM SMITH Wealth of Nations: the system of natural liberty.
• AUGUSTIN COURNOT Researches into the Mathematical Principles of the Theory of Wealth: unlimited competition.
• FRANCIS EDGEWORTH Mathematical Psychics: commercial contracts.
• PIERO SRAFFA The Laws of Return under Competitive Conditions: competition.
• EDWARD CHAMBERLIN The Theory of Monopolistic Competition: competition.
• OSKAR LANGE On The Economic Theory of Socialism: market socialism.
