In order to comprehend the ontological construction below, please refer to the respective posts for all notions in italic.
The competitive market for specific commodities is a monopolistic competition on the side of supply and monopsonistic competition on the side of demand. A very specific commodity can be produced by few producers and consume by few consumers, there for the competition in their production and consumption is present, yet it is a competition of definitely restricted kind. These goods function as complements to each other, so not all entrepreneurs are involved in every actual competition. The competitive market reveals this specific market structure when the multiplicity of enterprises is channelled to specific relationships between buyers and suppliers. Thus, the market is divided into niches and definite market shares in which those particular goods are traded. Monopolistic competition closely relates to syndicalism on the grounds of partner specific preferences of the market agents.
Historical Backdrop
• FRANCIS EDGEWORTH Mathematical Psychics: indeterminate contracts.
• GEORG SIMMEL On Social Differentiation: product differentiation.
• PIERO SRAFFA The Laws of Return under Competitive Conditions: monopolistic conditions.
• EDWARD CHAMBERLIN The Theory of Monopolistic Competition: monopolistic competition.
• JOAN ROBINSON The Economics of Imperfect Competition: price discrimination.
