Competition Theory: Evolution of Views and Content

Abstract

The article examines the theoretical content development of competition and the provisions of the competitive relations formation. It is proved that changes in the market environment attract attention to competitive relations in the first place. It is established that research in the field of competition theory has come a long and difficult way. The evolution of different scientists’ views outlines different directions and possibilities of its understanding in terms of areas of adaptation. It is pointed out that the representatives of the classical school of political economy determined competition through macroeconomic models. Understanding of competition through the issue of combination with monopoly was reflected in the crisis. This led to the formation of the competitive relations development with the simultaneous involvement of state regulation. Representatives of the institutional direction outlined the need to attract innovation to ensure development. At the same time, the understanding of competitive relations was completely compared with the formation of the organization theory. It is determined that the competitive relations evolution also involved the development of behavioral economic theory. This was facilitated by the results of changes in market relations, which were adapted to changes in the economic behavior of market participants. The peculiarities of competition formation for subjects of different sizes have been studied. Attention is paid to the development of competitive relations for the conditions of corporations. The relationship between competition and human capital is presented. It is proved that the formation of competitive advantages fully depends on the level of human capital development. It is determined that the representatives of neo-institutionalism focused on the efficiency of the economy in the study of competition. Thus, at this stage, costs have become important. The development of competition theory from different points of view led to the formation of the theory of competitive evolution. Different models of formation of competitive advantages are presented. The necessity of adaptation of market subjects to constant changes of the market environment and to attraction of separate models of the theory of a competition is proved, depending on possibilities of formation of own competitive advantages in the chosen markets. Key words: competition, competitive relations, competitive advantages, competitive models, strategies, efficiency.