The term "mechanism" originated from Greek Its meaning refers to the general name of the tools and means that people make to achieve a certain purpose. Competition is the product of commodity economy. As long as there is a commodity economy, there must be competition. The value of commodities determines, Law of value The realization of is inseparable from competition. [2] Competition mechanism is the most important part of commodity economy Economic mechanism 。 It reflects competition and relation between supply and demand , price changes, funds and Labor mobility And other market activities. It is the same as price mechanism And credit Interest rate mechanism And so on. Competition includes competition between buyers and sellers, as well as between buyers and sellers. The main means of competition, in the same Production department The internal competition is mainly price competition, and we can defeat our competitors at a lower price. Between departments, it is mainly the inflow or outflow of funds profit margin The low department flows to the high profit margin department. The symbol of the full play and expansion of the competition mechanism is the survival of the fittest.
The competition mechanism exists among buyers, sellers, and buyers and sellers; Between departments and workers within the enterprise, promote competitors to compete for favorable markets and strive for innovation, cost reduction , get Excess profit ; It exists between different departments, and promotes competitors to seize favorable investment market and investment conditions to form a society Average profit rate and Production price 。 (2) Irritation
The competition mechanism can maximize the stimulation of Stakeholders Of Initiative 。 [1] There are certain preconditions for the effectiveness of the competition mechanism. Generally speaking
(1) Producers and operators of commodities should be independent economic entity Instead of the appendages of the administrative organs. Only producers and operators have the right to Market conditions To determine the change of production direction, expansion and reduction of production scale Investment scale And the direction, the competition can be launched. (2) Recognize the corresponding benefits obtained by producers and operators of goods in the competition. Only acknowledge economic interest , can make competitor have Initiative And enthusiasm, with the internal power of competition. (3) To have the environment necessary for competition, the key is to have a complete set of structures and functions Market system 。 Only in such an environment can the circulation of goods and funds be unblocked and competition be carried out normally. along with socialist market economy The establishment and development of the competition mechanism show an increasingly obvious role. Improving the competition mechanism and implementing the survival of the fittest has also become an important part of promoting China's reform. Competition mechanism market economy Its operation and development play an important role in the following aspects: (1) Merchandising Individual value Convert to social value , of commodity Value performance Is the price, so that Law of value The requirements and functions of are implemented and realized. (2) It can promote producers to improve technology and Operation management , improve labour productivity 。 (3) It can urge producers to market demand Organize and arrange production to adapt production to demand. 
