Advertisement

The Theory of Competition Policy: an International Synthesis

  • Christian A. Conrad

Abstract

Because of the many forms competition can take, there is no universally accepted definition of it.1 The basic character of competition in a market economy can be understood as the contention between at least two participants on the supply side and those on the demand side. Competition forces the companies to adjust their supply to correspond to the wishes and needs of their consumers (the regulatory function). In a national economic system the desire to maximize profit produces the dynamic in which the raw materials with the best value are used in production. The end product that offers the best value is in the highest demand and is the most produced, which in turn allows the firm producing it the most room to reduce its prices (the allocation function).2

Keywords

Market Structure Market Entrance Competition Policy Consumer Welfare Austrian School 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Christian A. Conrad 2005

Authors and Affiliations

  • Christian A. Conrad

There are no affiliations available

Personalised recommendations