perfect competition

(redirected from Atomistic Competition)
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perfect competition

n
(Economics) economics a market situation in which there exists a homogeneous product, freedom of entry, and a large number of buyers and sellers none of whom individually can affect price
References in periodicals archive ?
The technologies and cost structure of commercial mass media production in the 20th century are not conducive to vigorous, atomistic competition.
4) It also implies accepting another of Schumpeter's prescripts: that sometimes one large firm is best, when that firm can produce most cheaply (and, as Schumpeter noted, internalize the benefits of research and other ideas, which have free rider problems and will be underproduced in Adam Smith's world of pinmakers) (5) To put it otherwise, atomistic competition may not be as efficient as other market structures.
It would seem more appropriate to attempt to list the conditions under which no price discrimination occurs: perfectly open markets, perfect information about prices on the part of consumers, no transactions costs, and a constant-cost industry structure--that is, precisely the conditions required for perfect or atomistic competition.