fair competition. Open, equitable, and just competition between business competitors.
horizontal competition. Competition between a seller and its competitors. • The Sherman Act prohibits unrea-sonable restraints on horizontal competition, such as price-fixing agreements between competitors.
— Also termed primary-line competition.
perfect competition. A completely efficient market situation characterized by numerous buyers and sellers, a homogeneous product, perfect information for all parties, and complete freedom to move in and out of the market. • Perfect competition rarely if ever exists, but antitrust scholars often use the theory as a standard for measuring market performance.
primary-line competition. See horizontal competition.
vertical competition. Competition between participants at different levels of distribution, such as manufacturer and distributor.
— Also termed secondary-line competition.
