Virtual vs. perfect competition

Piotr Maciąg

Abstract

Multitude of competition concepts causes the necessity to search for theories corresponding most appropriately with the real life. Dynamic changes taking place in the economy of the twenty-first century bring new elements, which cannot be disregarded when analyzing modern processes of competing. Big Data, cloud computing and social networking are those aspects of the process of digitization of the economy that disrupted many activities of traditional companies. Easy access to enormous amounts of data makes its effective use become a huge challenge for many companies, as it changes the way they should consider the issue of being competitive. The aim of this article is to provide the review of latest research in the field and to identify the best models to be applied. The results of research confirm that revival of the model of perfect competition is currently observed. Classical analysis of market structures indicates its convergence with the model of virtual competition, which seem to describe best the structures of modern market.

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