Milton Friedman on Competition - Dictionary of Arguments
Brocker I 405
Competition/FriedmanVsNeoclassics/Friedman: while neoclassical theory was based on perfect competition, which could ultimately only be guaranteed by permanent state intervention, Friedman favours the more evolutionary understanding of competition developed by Hayek as a method of discovery, which ultimately also provides for competition between institutions(1). From the point of view of a classic liberal like Friedman, the decisive criterion for effective competition is free market access alone.
Market imperfections: open up additional profit opportunities. According to Schumpeter this makes the development of innovation in the economy a worthwhile business, and the market is dynamically efficient if new producers keep competing away the temporary monopoly profits.
1. Goldschmidt, Nils/Wohlgemuth, Michael (Hg.), Grundtexte zur Freiburger Tradition der Ordnungsökonomik, Tübingen 2008, S. 13f.
Peter Spahn, „Milton Friedman, Kapitalismus und Freiheit“, in: Manfred Brocker (Hg.) Geschichte des politischen Denkens. Das 20. Jahrhundert. Frankfurt/M. 2018_____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Author1]Vs[Author2] or [Author]Vs[term] is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition.
Econ Fried I
The role of monetary policy 1968
Geschichte des politischen Denkens. Das 20. Jahrhundert Frankfurt/M. 2018