Competitive tender
Competition in the translation from Latin (coneurrentia) directly means to face in combat. Competition in economic theory is an important category, showing competetive struggle between producers for the most favorable conditions of production and marketing of their products. From this perspective highlights some of the functions of competition on the market: regulatory function, the function of motivation; distribution function, the function of control \ 90 \.
The first function is related to the fact that in order to survive in the competitive market, the manufacturer must assume precisely those goods that the consumer prefers. In turn, that is what regulates the distribution of the basic factors of production among entrepreneurs. In solving this problem should be based primarily in the sovereignty of consumers. The effect of this factor is actively manifested in their choice among competing products.
The second feature means that the entrepreneur competition is a chance and risk simultaneously. By offering competitive products, the company received additional profit. Companies that do not respond to customer needs or in violation of established rules of competition, receiving a sentence of loss or replaced with Glinka.
The third function provided that the competition not only includes incentives for higher productivity, but also allows you to distribute the income earned in accordance with their effective contribution of every entrepreneur in the development of the market. In other words, implement the principle of pay for performance.
Effects of the fourth function is aimed to limit and control the economic potential of each manufacturer. This is manifested in the formation of the market "fair" prices for many producers.
By the middle of XX century the world has largely developed the scientific and practical ideas about the essence of competition and its basic forms. Modern classification identifies four basic models of competition: perfect (pure) competition, monopolistic, oligopolistic competition and pure monopoly. But we must remember that these models do not reflect the diversity of features of real markets, which are complex and controversial designs, is determined not only by type, industry characteristics, national characteristics, but also other specific conditions of operation. After all, if the competition means a struggle between the producers for the most favorable conditions of production and marketing of their products, then from the perspective of practices of this struggle, it can be divided into fair and unfair.