Konkurentsi

Konkurentsi is the state of rivalry between economic actors, such as firms, buyers, and sellers, for access to scarce resources like customers, supplies, or markets. In Estonian usage, konkurentsi is the genitive form of konkurents, meaning competition or rivalry, and the term is commonly employed in economics, business, law, and public policy.

Economic competition arises when there are multiple participants, relatively easy market entry and exit, and reasonably available information. It tends to drive efficiency, lower prices, and spur innovation, as actors seek to improve products and reduce costs. Conversely, markets with limited competition may exhibit higher prices, less choice, and slower productivity growth.

Market structures illustrating different levels of konkurentsi include perfect competition, monopolistic competition, oligopoly, and monopoly. In perfect competition, many firms offer essentially identical goods; in monopolistic competition, firms differentiate products; in oligopoly, a small number of firms influence prices; in monopoly, a single firm holds dominant market power.

Policy and law commonly seek to maintain or restore konkurentsi through competition regulation. Antitrust or competition law prohibits anti-competitive agreements, abuses of dominant positions, and certain mergers that significantly lessen competition. Regulators may also monitor transparency, market conduct, and merger activities to protect consumer welfare and economic efficiency.