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1. The situation when anybody who wants to buy or sell has a choice of possible suppliers or customers. See also cut-throat competition; potential competition; unfair competition. 2. The formal assumption in economic modelling of every agent acting as a price-taker. See also perfect competition. 3. The notion of two or more economic agents engaged in strategic interaction and pursuing individual gain. See also Bertrand competition; Cournot competition; imperfect competition; monopolistic competition; non-price competition.

Reference: Oxford Press Dictonary of Economics, 5th edt.