COMPETITION

competition. The struggle for commercial advantage; the effort or action of two or more commercial interests to obtain the same business from third parties. fair competition.Open, equitable, and just competition between business competitors. horizontal competition.Competition between a seller and its competitors. • The Sherman Act prohibits unrea-sonable restraints on horizontal competition, such as price-fixing agreements between competitors. — Also termed primary-line competition. perfect competition.A completely efficient market situation characterized by numerous buyers and sellers, a homogeneous product, perfect information for all parties, and complete freedom to move in and out of the market. • Perfect competition rarely if ever exists, but antitrust scholars often use the theory as a standard for measuring market performance. primary-line competition.See horizontal competition.vertical competition.Competition between participants at different levels of distribution, such as manufacturer and distributor. — Also termed secondary-line competition. [Blacks Law 8th]