Competition Atomistic Another

Competition Atomistic Another

Competition, Atomistic, another name for pure competition. Competition, Imperfect. See Imperfect Competition. Competition, Monopolistic. See Monopolistic Competition. Competition, Perfect. See Perfect Competition.

Competition, Pure. See Pure Competition.

Complementary Goods, those which must be used in combination in order to satisfy a want. Goods may be related or unrelated; related goods are subdivided into competitive and complementary goods. Consumers are generally faced with a wide variety of goods from which to satisfy their wants. Some wants can be satisfied with more than one good, that is by competitive goods which are substitutes for one another. For example, ball-point pens are good substitutes for fountain pens, but less good substitutes for typewriters. But other wants require more than one good to be satisfied. The collection of goods needed to satisfy them are complementary to one another. As an individual uses more of one good, he must use more of the goods that are complementary to it, e.g. motor-cars and petrol, electricity and electrical appliances, cigarettes and matches. There are differing degrees of complementarity. In most cases the quantities of the complementary goods needed to satisfy the want can be varied. But in the most extreme cases the goods must be used in a one-to-one ratio: e.g. one left and one right glove, one rock for each door, and one driving wheel for each car.

The relations between competitive and complementary goods are important in the theory of consumers' demand. With competitive goods, such as detergents, a fall in the price of one brand will cause a fall in the demand for competing brands. With complementary goods the effect is generally opposite; if the price of electrical appliances is reduced, the demand for them will increase and this will increase the demand for electricity.

Conciliation, the process of persuading the parties to a dispute to discuss it in the hope of finding a solution acceptable to both (or all). It is commonly used in trade disputes between employers (singly or in groups) and trade unions. In Britain the Ministry of Labour tries conciliation, which has no legal sanction, as a stage before arbitration, which has. 5

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