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Introduction
The purpose of this article is to explore to what extent informals are exposed to competition as well as how they struggle to survive under such condition. I put this issue under close scrutiny by focusing on one of the most visible informal economic activities: market trading in Ankara, Turkey. Since the reality of the informal sector was first realized (Hart, 1973), there has been a growing body of literature focusing on its different aspects. Although prior research conducted in the informal sector demonstrated that informal occupations are extremely competitive and individualistic, the issue of conflicts and competition has received little attention in the informal sector literature (Bromley and Birkbeck, 1984).
In examining competition in the informal sector, there is the issue of whether conventional economic parameters apply to the economic activity of market traders. Bromley and Birkbeck (1984, p.186) brilliantly pointed out that there are certain ways in which patterns of conflict are different from, and in some ways more complex than, conventionally studied conflict in the informal sector. Following their approach, I generated the following questions: Are all of these traders profit-maximizing sellers acting in accordance with the principles of a competition economy? Does competition vary according to the scale of enterprise? What are the economic, cultural and social factors that affect and constrain economic decision-making in curbing competition? To what extent does the intensive competition among market traders lead to cleavage? Do market traders form informal non-class based association to curb competition with each other? And finally, what social, ethnic, and religious factors play a role in the formation of these associations? In addressing these questions, there is the need for a conceptual framework to adequately examine the competition among market traders.
This article consists of the five sections. The first section develops a conceptual framework within which the above questions will be examined. The second section introduces the research setting and outlines specific research methods being used in collecting data. This section will not only provide a general description of the setting but will also contain background information necessary for understanding my analysis in later sections. The third section explains strategies and goals of market traders in marketing and curbing competition. The fourth section discusses the significance of ethnicity and...