Business/Economics - learn from the smartest.
Market situation in which many independent buyers and sellers may exist but competition is limited by specific market conditions. The theory was developed almost simultaneously by Edward Hastings Chamberlin in his (1933) and Joan V. Robinson in her (1933). It assumes product differentiation, a situation in which each seller's goods have some unique properties, thereby giving the seller some monopoly power. See also monopoly; oligopoly.
Find more information on monopolistic competition. Upgrade to Britannica Online for more on monopolistic competition.