Abstract
The neoclassical tradition in economic theory uses two critical hypotheses of perfect competition to analyze the private enterprise economy. One is that the long run perfectly competitive equilibrium of prices yields a Pareto-optimal allocation of resources and conversely. The second is that the information set available to each price taking agent is costless and freely available. Both of these propositions have been challenged in recent times. Modern technological change, R&D investment in knowledge capital, and the non-competitive market dynamics have altered the very foundations of the competitive model.
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© 2012 Springer Science+Business Media New York
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Sengupta, J. (2012). Information and Efficiency. In: Dynamics of Industry Growth. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-3852-6_7
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DOI: https://doi.org/10.1007/978-1-4614-3852-6_7
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Online ISBN: 978-1-4614-3852-6
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