Monopolistic competition is a type of imperfect competition in which many sellers, each with a relatively small market share and with differentiated products (i.e., not perfect substitutes for each other), compete for consumer patronage.
In monopolistic competition, sellers often emphasize marketing variables other than price.
The term originated with Harvard economist Edward Chamberlain in the 1930s.
- Oligopolistic competition
- Perfect competition
- Pure competition
- Workable competition
- ^ American Marketing Association, AMA Dictionary.