atomistic competition

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Atomistic Competition

A situation in which perfect competition exists because of the existence of many small companies. Because there are so many companies, no one is able to dominate the market or set prices. This results in low profits but also low cost for clients or consumers. Many believe atomistic competition to be ideal, though it rarely exists in practice.

atomistic competition

see PERFECT COMPETITION.

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The so-called Keynesian revolution which transformed macroeconomic theory in the 1930s was largely untouched by these advances in the theory of markets, continuing to rely on the time-honored assumption of atomistic competition.

Monopoly capitalism

Other versions of competition generate effectively efficient and progressive outcomes without getting ensnared in the 1930s schoolbook assumption of atomistic competition.