Friday, July 13, 2012

On Comepetition

People compete with others with the role and with the same goal. Buyers never compete with sellers. They are, instead, cooperating with each other during a trade. Buyers compete with buyers, and sellers compete with sellers.

What about the bargaining between a seller and a buyer? Should it be called a process of competition? It is competition. But again, it is not buyers and sellers compete with each other. If one party, say the buyer, has a stronger bargaining power, it is because the other party, the seller in tis case, is faced with fiercer competition. So the buyer has a stronger bargaining power probably because there are many sellers competing with each other.

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