Economics Dictionary of ArgumentsHome
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| Competition: Competition is a rivalry or contest between individuals or groups striving for a common goal, often involving effort, skill, or resources._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Murray N. Rothbard on Competition - Dictionary of Arguments
Rothbard III Competition/monopolies//Rothbard: (…] a common worry of economic writers: What if the average cost curve of a firm continues to fall indefinitely? Would not the firm then grow so big as to constitute a "monopoly"? There is much lamentation that competition "breaks down" in such a situation. 1) Competition: Much of the emphasis on this problem comes, however, from preoccupation with the case of "pure competition," (…) is an impossible figment. 2) Secondly, it is obvious that no firm ever has been or can be infinitely large, so that limiting obstacles - rising or less rapidly falling costs - must enter somewhere, and relevantly, for every firm.(1) 3) Thirdly, if a firm, through greater effciency, does obtain a "monopoly" in some sense in its industry, it clearly does so, in the case we are considering (falling average cost), by Iowering prices and benefiting the consumers. And if (as all the theorists who attack "monopoly" agree) what is wrong with "monopoly" is precisely a restriction of production and a rise in price, there is obviously nothing wrong with a "monopoly" achieved by pursuing the directly opposite path.(2) 1. On the “orthodox” neglect of cost limitations, see Robbins, “Remarks upon Certain Aspects of the Theory of Costs.” 2. Cf. Mises, Human Action, New Haven, Conn.: Yale University Press, 1949. Reprinted by the Ludwig von Mises Institute, 1998. p. 367._____________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 [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Rothbard II Murray N. Rothbard Classical Economics. An Austrian Perspective on the History of Economic Thought. Cheltenham, UK: Edward Elgar Publishing. Cheltenham 1995 Rothbard III Murray N. Rothbard Man, Economy and State with Power and Market. Study Edition Auburn, Alabama 1962, 1970, 2009 Rothbard IV Murray N. Rothbard The Essential von Mises Auburn, Alabama 1988 Rothbard V Murray N. Rothbard Power and Market: Government and the Economy Kansas City 1977 |
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