Term:
Homogenous products
Definition:
Homogenous products are considered to be homogenous when they are perfect substitutes and buyers perceive no actual or real differences between the products offered by different firms.
Price is the single most important dimension along which firms producing homogenous products compete.
Domain:
Finance
Source:
Glossary of Industrial Organisation Economics and Competition Law, compiled by R. S. Khemani and D. M. Shapiro, commissioned by the Directorate for Financial, Fiscal and Enterprise Affairs, OECD, 1993
