Competition - Revision history

Jérôme Alexandre: /* Bibliography */ Economic Harmonies, by Frédéric Bastiat

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Bibliography: Economic Harmonies, by Frédéric Bastiat

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Jérôme Alexandre: /* Bibliography */ The Bastiat Collection

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Bibliography: The Bastiat Collection

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Jérôme Alexandre: /* Bibliography */ La concurrence, by Pascal Salin

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Bibliography: La concurrence, by Pascal Salin

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Jérôme Alexandre: /* Links */ "The Meaning of Competition" by Friedrich Hayek

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Links: "The Meaning of Competition" by Friedrich Hayek

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Jérôme Alexandre: Bibliography

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Bibliography

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Pestergaines at 11:47, 17 November 2011

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	"By way of contrast, intense rivalry may exist between two automobile agencies or between two filling stations in the same city. One seller's actions influence the market of the other; consequently, pure competition does not exist in this case."<ref name="Leftwich_Price">Richard H. Leftwich and Ross D. Eckert, [http://books.google.com/books?id=96S7AAAAIAAJ&q=intense+rivalry#search_anchor "The Price System and Resource Allocation"], 9th ed., The Dryden Press, Chicago, 1985, p. 41. Referenced 2011-11-17.</ref>		"By way of contrast, intense rivalry may exist between two automobile agencies or between two filling stations in the same city. One seller's actions influence the market of the other; consequently, pure competition does not exist in this case."<ref name="Leftwich_Price">Richard H. Leftwich and Ross D. Eckert, [http://books.google.com/books?id=96S7AAAAIAAJ&q=intense+rivalry#search_anchor "The Price System and Resource Allocation"], 9th ed., The Dryden Press, Chicago, 1985, p. 41. Referenced 2011-11-17.</ref>

			[[F.A. Hayek]] argues that competition is the more important the more complex or "imperfect" are the objective conditions in which it has to operate. Indeed, far from competition being beneficial only when it is "perfect," the need for competition is nowhere greater than in fields in which the nature of the commodities or services makes it impossible that it ever should create a perfect market in the theoretical sense.<ref name="Hayek_Competition">Friedrich A. Hayek. [http://mises.org/daily/4181 "The Meaning of Competition"], from [[Individualism and Economic Order]] (1948), referenced 2011-11-17.</ref>

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Pestergaines: Created initial page.

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Created initial page.

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'''Competition''' is in economics "the act or process of competing or rivalry; the effort of two or more parties acting independently to secure the business of a third party by offering the most favorable terms.<ref name="Webster_Competition">[http://www.merriam-webster.com/dictionary/competition "Competition"], ''Merriam-Webster Dictionary'', referenced 2011-11-17.</ref>

==Perfect competition==
{{Main|Perfect competition}}
Under perfect competition, firms are assumed to operate in a market characterized by a homogeneous product, an infinite number of buyers and sellers, the absence of any barriers to entry, and with access to [[perfect information]].<ref name="causal_realist">[[Peter Klein]] [http://mises.org/media/categories/99/Fundamentals-of-Economic-Analysis-A-CausalRealist-Approach "Fundamentals of Economic Analysis: A Causal-Realist Approach"], 2007, Lecture 7 Competition and Monopoly.</ref>

This "pure and perfect competition" is unlike anything one normally means by the term "competition." Normally, one thinks of competition as denoting a rivalry among producers, in which each producer strives to match or exceed the performance of other producers. This is not what "pure and perfect competition" means. Indeed, the existence of rivalry, of competition as it is normally understood, is incompatible with "pure and perfect competition." Consider the following passage in a widely used economics textbook by Professor Richard Leftwich:<ref name="Reisman_Platonic">[[George Reisman]]. [http://mises.org/daily/1988 "Platonic Competition"], December 20, 2005. Referenced 2011-11-17.</ref>

"By way of contrast, intense rivalry may exist between two automobile agencies or between two filling stations in the same city. One seller's actions influence the market of the other; consequently, pure competition does not exist in this case."<ref name="Leftwich_Price">Richard H. Leftwich and Ross D. Eckert, [http://books.google.com/books?id=96S7AAAAIAAJ&q=intense+rivalry#search_anchor "The Price System and Resource Allocation"], 9th ed., The Dryden Press, Chicago, 1985, p. 41. Referenced 2011-11-17.</ref>

==References==
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==Links==
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[[Category:Economic concepts]]
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