Industrial organization and steady-state of intense competition: an analytic review

Abstract Competition and cooperation have been discussed and subjected to economic and business studies in terms of the behavioral causes and consequences of these strategies chosen solely or in combination by companies in compliance with their interests. Researches have revealed that not only competition but also cooperation is strategically important for individual companies and markets. If discussed in the theoretical frame, high competition conditions may drive the market or some of the companies in the market to reach a steady-state level where investments may become less advantageous, and cooperation models to be applied between the companies in this situation may support them in overcoming this stagnative period. This study aims to analyze the economy and business literature with respect to competition and cooperation followed by coopetition model explanations. The analysis results show that coopetition can be a reasonably foreseeable operational development strategy for production companies in the period when they operate under steady-state market conditions. JEL Codes: F23, C71, D20, C32, C61, M10