Edge competition

In the economy, fringe competition means competition with a dominant provider and small competitors (“fringe competitor”).

Assumptions

The dominant provider has certain cost advantages because of its size . In contrast to a monopoly situation , however, the dominant competitor must take into account the small providers in its pricing policy , who ultimately take the market price as a date.

Consequences

A market division can be expected. The welfare is less than in complete competition , but greater than in a monopoly . In addition, a certain variety of products can be expected.