Bass Competition

Bass Competition refers to a theoretical model in economics that analyzes how firms compete in a market where they can either invest in product improvements or reduce prices. It highlights the strategic decisions companies make to attract customers while balancing quality and affordability. The concept illustrates that firms must consider both their competition and consumer preferences when determining their approach, as a focus on just one aspect can lead to losing market share or profits. Ultimately, Bass Competition helps to understand the dynamics of market behavior and the choices firms face in competing effectively.