Abstract
The competition assessment process provides an analytical framework for business negotiation entities to mitigate, or avoid potential competition problems. It helps to identify possible alternatives that may reduce, or eliminate potential harm to competition. Limiting the number of business negotiation enti-ties leads to the risk that market power will be created and competitive rivalry will be reduced. The aim of the article is to analyze the theory and practice of developing and implementing business negotiation strat-egies in a complex way, also to evaluate the level of competition in distorting market conditions. The ob-ject of the study is to strike a balance at the level of competition in business negotiations, under distorting market conditions. The scientific problem is that bargaining theory lacks tools to assess and balance the level of competition between participants in market conditions that distort competition.
Highlights
The activities of national competition authorities include, for example, attempts by entrepreneurs and professional organizations to identify barriers of entry to markets, increase costs for corporate competitors and coordinate the competitors’ pricing and production strategies
Regulations can influence the behavior of suppliers by changing their ability to compete in the negotiations, and by changing the incentive to act as vigorous competitors
Strong competition in supplier sectors can “increase” productivity and employment in the consumer sectors and through the economy more broadly. This is largely due to competition that improves distribution efficiency by allowing more efficient firms to enter the market and gain market share at the expense of less efficient firms
Summary
The activities of national competition authorities include, for example, attempts by entrepreneurs and professional organizations to identify barriers of entry to markets, increase costs for corporate competitors and coordinate (as opposed to competition) the competitors’ pricing and production strategies. Because of reduced competition some kind of business is out of control, so this can lead to higher prices for consumers, loss of product variety and quality, loss of innovation, and loss of business bargaining power. If we look at the history of rules and regulations adopted by governments and restrictions imposed by professional organizations, they often restrict access to markets and create various distortions that lead to inefficient market outcomes. The rules and regulations are designed to meet a variety of socio-economic objectives pursued by governments and can:. − higher costs for participants and small businesses compared to incumbents or larger companies,. One type of business conduct that is most harmful to competition is the formation of cartels (Niu, Dong, & Chen, 2012; OECD, 2017a, 2017b, 2017c; Phillips & Menkhaus, 2010; Pinto & Falcão-Reis, 2019; Ren & Zhang, 2014; Ritter et al, 2019; Willems & De Corte, 2008; Yang, Zhang, & Gao, 2019)
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