Market Interactions Consumer-Producer rival a Consumers attempt to locate low prices, while producers attempt to charge high prices Consumer-Consumer rival Scarcity of goods reduces the negotiating power of consumers as they compete for the right to those goods Producer -Producer rival Scarcity of consumers causes producers to compete with one another for the right to service customers The role of government Disciplines the market process Michael R Baye, Managerial Economics and Business Strategy, 3e. CThe McGraw-Hill Companies, Inc, 1999Michael R. Baye, Managerial Economics and Business Strategy, 3e. ©The McGraw-Hill Companies, Inc. , 1999 Market Interactions • Consumer-Producer Rivalry  Consumers attempt to locate low prices, while producers attempt to charge high prices • Consumer-Consumer Rivalry  Scarcity of goods reduces the negotiating power of consumers as they compete for the right to those goods • Producer-Producer Rivalry  Scarcity of consumers causes producers to compete with one another for the right to service customers • The Role of Government  Disciplines the market process