From Competition To Coopetition: New Understanding Of Market Equilibrium

Today’s economics uses models of straight lines and curves to study market equilibrium,but these models often focus only on the nature of straight lines and ignore the nature of curves,so competition is regarded as the main factor in achieving market equilibrium.This leads to questions such as whether Pareto optimality does exist in a perfectly competitive market,and the potential conflict between individual and collective rationality.With the help of the perspective of competitive behavior,this paper integrates competition and cooperation,constructs a theoretical framework of market equilibrium from the consumption and production behavior of economic agents to the trade behavior of the two countries,defines the properties of straight lines and curves in the economic model,and defines the curve as competitive nature on the basis of retaining the perfect competitive nature represented by straight lines,that is,it contains both cooperation and competition,so as to provide a new perspective for analyzing market equilibrium and related issues.Based on the idea that straight lines represent perfect competition and curves represent cooperative competition,this paper compares and analyzes whether the equilibrium nature of the five classical models of economics is competition or competition.At the same time,this paper comprehensively compares these five models from the dimensions of horizontal(economic behavior)and vertical(competitive perspective and competitive perspective).The following introduces the reasons for selecting five models: first,it covers different levels of market economy phenomena,such as consumer decision-making,producer decision-making,market supply and demand,and international trade,which is helpful for a comprehensive analysis of market equilibrium;The second is to cover the main areas of market economic behavior,comprehensively use to make up for the limitations of a single model,and comprehensively explore the equilibrium mechanism;The third is to reveal competitive equilibrium and competitive equilibrium from multiple angles through the classical economic equilibrium model.It is found that the current economics mainly focuses on the perfect competitive nature of the straight line,and ignores the nature of cooperation contained in the curve,so this paper changes the equilibrium model of economics from the original perfect competitive equilibrium to the competitive equilibrium.This shift makes our understanding of Pareto optimality in economics and the relationship between individual reason and collective rationality no longer limited to pure competitive equilibrium,but based on the perspective of competitive equilibrium,the above theoretical problems are more clearly understood.Based on the research in this paper,the author puts forward the following practical enlightenment and suggested measures: individuals,enterprises and countries should enhance their own advantages,maintain differentiation,and achieve mutual benefit through complementary advantages and differential commodity exchanges;Give full play to the competitive advantage in the market and avoid the competitive behavior of zero-sum game;Governments,enterprises and individuals need to focus on strengths and capacity development,promote innovation and education development,and maximize the benefits of individuals and society.