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The underlying characteristics of a market which determine the competitive relations between seilers. The most important of these characteristics are (a) the size distribution of firms, (b) the size distribution of buyers, (c) the barriers to entry of new buyers and seilers, (d) the degree of product differentiation, and (e) the degree of vertical integration. Other characteristics which may be important are the capital intensity of production, the stability of demand for the product on the market and the spatial distribution of buyers and seilers.
Reference: The Penguin Dictionary of Economics, 3rd edt.
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