Levels of Rivalry

In managerial economics, every operation within a market is twofold. "For every buyer of a good, there is a corresponding seller. The final outcome of the market process, then, depends on the relative power of buyers and sellers in the marketplace" (Baye, 2010, p. 14). The following types of rivalry in economic areas restrict the control of both consumers and manufacturers in the market:

• Consumer–producer rivalry
• Consumer–consumer rivalry
• Producer–producer rivalry

Baye, M. R. (2010). Managerial economics and business strategy (7th ed.). New York, NY: McGraw-Hill/Irwin.