FOURTH RULE OF COMPETITION: The fourth of seven basic rules of the economy. It is the notion that competition among market buyers and sellers generate an efficient allocation of resources. Competition depends on the relative number of buyers and sellers. Fewer numbers give that side of the market relatively more market control and thus limits competition. See also | seven rules | market | competition | resource allocation | market control | monopoly | perfect competition | efficiency | competition among the many | competition among the few |
