Abstract

Competition is one of the key categories and an integral attribute of a market economy. The ambiguity of this phenomenon forms many of its definitions, various concepts and methods of its research. Despite the general development of economic science and improved understanding of the functioning mechanism of the market economic system, there is still no generally accepted theory of competition. At the same time, the need to create such a theory is constantly growing due to profound changes taking place in the economic systems of states. These transformations provoke the emergence of new forms of competitive relations between subjects of the world market, which are related to the impact of scientific and technological progress on economic development. The article examines and summarizes various concepts of prominent scientists regarding the interpretation of the "competition" category, examines the evolution of the theory of competition, and identifies the features of modern competition. In general, competition is considered in the article as: rivalry between subjects on the market; the mechanism of regulation of supply and demand in the market, competition between the traditional and the innovative. There are three main levels of competition between market entities. Much attention is also focused on the examination of this category, based on three approaches to its interpretation (behavioral, structural and functional). The behavioral approach to the concept of "competition" involves the struggle of enterprises among themselves, which is conducted for the most favorable conditions for the sale of goods. According to the structural approach, the concept of competition has strengthened its position due to its consideration as a competition rather than a rivalry. The functional approach outlines the place and meaning of competition in the economy. On the basis of this study, it was concluded that the implementation of innovations is the main mechanism for achieving sustainable competitive advantages, and more and more modern companies are reorienting their strategies based on cooperation in business instead of competition.

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