P-Competition
What many economists call "Perfect Competition" is an idealized structure of an industry in which price competition is dominant -- in fact the only form of competition possible. The terminology "Perfect Competition" is quite common but not quite universal. The term "Pure Competition" is also sometimes used. I will use the term "P-Competition," where the P can stand for perfect, pure, or price competition -- whichever you like.
A P-Competitive structure is defined by four characteristics. For an industry to have a P-competitive structure, it must have all four of these characteristics:
These are all characteristics that favor price competition. Each of these characteristics will be explained in turn.
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