Kilpailumallit

Kilpailumallit, often translated as "competition models" or "market structures," refer to the theoretical frameworks used to analyze and categorize different types of markets based on the number of firms, the nature of their products, and the ease of entry and exit. These models help economists understand how prices, output, and firm behavior are determined in various market settings.

The most common competition models include perfect competition, monopolistic competition, oligopoly, and monopoly. Perfect competition describes a market with a very large number of firms selling identical products, with no barriers to entry or exit. Firms in this model are price takers. Monopolistic competition also features many firms, but their products are differentiated, leading to some price-setting ability. Entry and exit are relatively easy.

Oligopoly is characterized by a few dominant firms, where the actions of one firm significantly impact the others, leading to strategic interdependence. Barriers to entry can be substantial. Monopoly represents a market with a single seller of a unique product with no close substitutes, facing high barriers to entry and possessing considerable market power.

These models are simplifications of reality, but they provide valuable insights into market dynamics, efficiency, and the potential for government intervention. Understanding these structures is crucial for analyzing economic policy, business strategy, and consumer welfare.