Quotes on Competition

"The price of monopoly is upon every occasion the highest which can be got. The natural price, or the price of free competition, on the contrary, is the lowest which can be taken, not upon every occasion indeed, but for any considerable time altogether. The one is upon every occasion the highest which can be squeezed out of the buyers, or which, it is supposed, they will consent to give: The other is the lowest which the sellers can commonly afford to take, and at the same time continue their business."

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"After all, what is competition? Is it something that exists and has a life of its own, like cholera? No. Competition is merely the absence of oppression. In things that concern me, I want to make my own choice, and I do not want another to make it for me without regard for my wishes; that is all. And if someone proposes to substitute his judgment for mine in matters that concern me, I shall demand to substitute my judgment for his in matters that concern him. What guarantee is there that this will make things go any better? It is evident that competition is freedom. To destroy freedom of action is to destroy the possibility, and consequently the power, of choosing, of judging, of comparing; it amounts to destroying reason, to destroying thought, to destroying man himself. Whatever their starting point, this is the ultimate conclusion our modern reformers always reach; for the sake of improving society they begin by destroying the individual, on the pretext that all evils come from him, as if all good things did not likewise come from him."

Frédéric Bastiat
W. Hayden Boyers (trans.)
The Online Library of Liberty
1850
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"I do not hesitate to say that competition, which, indeed, we could call freedom-despite the aversion it inspires and the tirades directed against it-is essentially the law of democracy. It is the most progressive, the most egalitarian, the most universally leveling of all the laws to which Providence has entrusted the progress of human society. It is this law of competition that brings one by one within common reach the enjoyment of all those advantages that Nature seemed to have bestowed gratis on certain countries only."

Frederic Bastiat
W. Hayden Boyers (trans.)
The Online Library of Liberty
1850
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"In commerce, as in everything else, by the word competition is meant the struggle of two or more individuals who aspire to the same advantage, and vie with each other to obtain it; the end to be attained is different, and in many respects, the means of attaining it are different also."

John Joseph Lalor
Cyclopædia of Political Science, Political Economy, and the Political History of the United States
Library of Economics and Liberty
1899
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"The term competition as applied to the conditions of animal life signifies the rivalry between animals which manifests itself in their search for food. We may call this phenomenon biological competition. Biological competition must not be confused with social competition, i.e., the striving of individuals to attain the most favorable position in the system of social cooperation."

Ludwig von Mises
Yale University Press
1949
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Library Topic: Socialism

"Capitalism, in the terminology of these foes of liberty, democracy, and the market economy, means the economic policy advocated by big business and millionaires. Confronted with the fact that some—but certainly not all-wealthy entrepreneurs and capitalists nowadays favor measures restricting free trade and competition and resulting in monopoly, they say: Contemporary capitalism stands for protectionism, cartels, and the abolition of competition. It is true, they add, that at a definite period of the past British capitalism favored free trade both on the domestic market and in international relations. This was because at that time the class interests of the British bourgeoisie were best served by such a policy. Conditions, however, changed and today capitalism, i.e., the doctrine advocated by the exploiters, aims at another policy.

It has already been pointed out that this doctrine badly distorts both economic theory and historical facts. There were and there will always be people whose selfish ambitions demand protection for vested interests and who hope to derive advantage from measures restricting competition. Entrepreneurs grown old and tired and the decadent heirs of people who succeeded in the past dislike the agile parvenus who challenge their wealth and their eminent social position. Whether or not their desire to make economic conditions rigid and to hinder improvements can be realized, depends on the climate of public opinion. The ideological structure of the nineteenth century, as fashioned by the prestige of the teachings of the liberal economists, rendered such wishes vain. When the technological improvements of the age of liberalism revolutionized the traditional methods of production, transportation, and marketing, those whose vested interests were hurt did not ask for protection because it would have been a hopeless venture. But today it is deemed a legitimate task of government to prevent an efficient man from competing with the less efficient. Public opinion sympathizes with the demands of powerful pressure groups to stop progress. The butter producers are with considerable success fighting against margarine and the musicians against recorded music. The labor unions are deadly foes of every new machine. It is not amazing that in such an environment less efficient businessmen aim at protection against more efficient competitors.

It would be correct to describe this state of affairs in this way: Today many or some groups of business are no longer liberal; they do not advocate a pure market economy and free enterprise, but, on the contrary, are asking for various measures of government interference with business. But it is entirely misleading to say that the meaning of the concept of capitalism has changed and that 'mature capitalism'—as the American Institutionalists call it—or 'late capitalism'—as the Marxians call it—is characterized by restrictive policies to protect the vested interests of wage earners, farmers, shopkeepers, artisans, and sometimes also of capitalists and entrepreneurs. The concept of capitalism is as an economic concept immutable; if it means anything, it means the market economy. One deprives oneself of the semantic tools to deal adequately with the problems of contemporary history and economic policies if one acquiesces in a different terminology. This faulty nomenclature becomes understandable only if we realize that the pseudo-economists and the politicians who apply it want to prevent people from knowing what the market economy really is. They want to make people believe that all the repulsive manifestations of restrictive government policies are produced by 'capitalism.'"

Ludwig von Mises
Yale University Press
1949
Library Topic
Library Topic: Socialism

"In a totalitarian system, social competition manifests itself in the endeavors of people to court the favor of those in power. In the market economy, competition manifests itself in the fact that the sellers must outdo one another by offering better or cheaper goods and services, and that the buyers must outdo one another by offering higher prices."

Ludwig von Mises
Yale University Press
1949
Library Topic
Library Topic: Market Failure
Library Topic: Socialism

"The rich, the owners of the already operating plants, have no particular class interest in the maintenance of free competition. They are opposed to confiscation and expropriation of their fortunes, but their vested interests are rather in favor of measures preventing newcomers from challenging their position. Those fighting for free enterprise and free competition do not defend the interests of those rich today. They want a free hand left to unknown men who will be the entrepreneurs of tomorrow and whose ingenuity will make the life of coming generations more agreeable. They want the way left open to further economic improvements. They are the spokesmen of material progress."

Ludwig von Mises
Yale University Press
1949
Library Topic
Library Topic: Socialism

"These grumblers do not realize that the tremendous progress of technological methods of production and the resulting increase in wealth and welfare were feasible only through the pursuit of those liberal policies which were the practical application of the teachings of economics. It was the ideas of the classical economists that removed the checks imposed by age-old laws, customs, and prejudices upon technological improvement and freed the genius of reformers and innovators from the straitjackets of the guilds, government tutelage, and social pressure of various kinds. It was they that reduced the prestige of conquerors and expropriators and demonstrated the social benefits derived from business activity. None of the great modern inventions would have been put to use if the mentality of the precapitalistic era had not been thoroughly demolished by the economists. What is commonly called the 'industrial revolution' was an offspring of the ideological revolution brought about by the doctrines of the economists. The economists exploded the old tenets: that it is unfair and unjust to outdo a competitor by producing better and cheaper goods; that it is iniquitous to deviate from the traditional methods of production; that machines are an evil because they bring about unemployment; that it is one of the tasks of civil government to prevent efficient businessmen from getting rich and to protect the less efficient against the competition of the more efficient; that to restrict the freedom of entrepreneurs by government compulsion or by coercion on the part of other social powers is an appropriate means to promote a nation's well-being. British political economy and French Physiocracy were the pacemakers of modern capitalism. It is they that made possible the progress of the applied natural sciences that has heaped benefits upon the masses."

Ludwig von Mises
Yale University Press
1949
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Library Topic: Socialism

"By competition, I refer to a situation that exists when the basic rules of the free society are observed — when everyone possesses the basic rights of private property and freedom of contract. Competition is not a mode of conduct that anyone has to promote institutionally. It develops naturally and necessarily among persons who are free to pursue their own interests."

Sylvester Petro
Mises Daily
Ludwig von Mises Institute
November 24, 2009 (original date, 1958)
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"One after another, researchers across the country have concluded that children do not learn better when education is transformed into a competitive struggle. Why? First, competition often makes kids anxious and that interferes with concentration. Second, competition doesn't permit them to share their talents and resources as cooperation does, so they can't learn from one another. Finally, trying to be Number One distracts them from what they're supposed to be learning. It may seem paradoxical, but when a student concentrates on the reward (an A or a gold star or a trophy), she becomes less interested in what she's doing. The result: Performance declines."

Alfie Kohn
Working Mother
September 1987
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"Unfortunately, the Sherman Act was never intended to protect competition. It was a blatantly protectionist act designed to shield smaller and less efficient businesses from their larger competitors. There never was a golden age of antitrust. The standard account of the origins of antitrust is a myth."

Thomas J. DiLorenzo
Austrian Economics Newsletter
The Mises Institute
1991
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"For the mainstream of economic theory the notion of competition has come to be associated with the absence of market power (to effect change in price or product quality). A competitive market is one in which no firm possesses market power...

Following a long tradition in economics going back at least to Adam Smith, [Austrian Economists] define a competitive market not as a situation where no participant or potential participant has the power to make any difference, but as a market where no potential participant faces nonmarket obstacles to entry."

Israel M. Kirzner
The Freeman
Foundation for Economic Education
March 2000
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"In Israel Kirzner’s view, one of the most important reasons for open, competitive markets is for individuals to have the profit incentives and the chance to benefit from alertness. The free-market institutional order creates the conditions under which people will be more likely to have the motivation to be alert, even though we can never know ahead of time what their creative discoveries will generate and unearth.

But why should the discovery and earning of such profits be considered 'good' from the wider social point of view? Part of Kirzner’s answer is a development of Hayek’s insight that corresponding to the division of labor in society is an inevitable division of knowledge. Each of us possesses only a small fraction of all the knowledge and information in the world, and yet somehow all of our interdependent activities must be coordinated for each of us to benefit from the specializations and expertise of our fellow men.

Hayek emphasized that the coordination of the actions of millions of specialized producers and consumers around the global market is brought about through the price system. Any change in someone’s willingness or ability to supply or demand any product anywhere in the market is registered through a change in the price of the good, service, or resource in question.

Furthermore, such changes are occurring all the time in a world of unceasing change. The resulting changes in market prices due to shifts in supply and demand conditions are constantly creating new profit or loss situations.

A central task of the entrepreneur, Kirzner has argued, is to be alert to these shifts in market conditions and indeed to anticipate them as best he can.

His role in the market economy is to bring about modifications and transformations in what goods are produced, where they are produced, and with which methods of production, so that production activities are continuously tending to reflect the actual patterns of consumer demand.

Through his alertness to profits to be gained and losses to be avoided, the entrepreneur ensures the adjustments to change that are required for a process of continual coordination of market activities, upon which both the existing and an improving standard of living are dependent."

Richard M. Ebeling
Freedom Daily
The Future of Freedom Foundation
August 2001
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"Competition advocates have won many victories over the last few decades. We have largely won the intellectual debate: Economists and legal scholars around the globe now recognize the benefits of competition to consumers and to the economy as a whole."

Timothy Muris
Federal Trade Commission
September 29, 2002
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"For human beings competition is not the negation of cooperation but a form of it. We know this because when competition is forcibly suppressed, cooperation breaks down and something like the real law of the jungle takes its place."

Sheldon Richman
Ideas on Liberty
June 2003
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"Those who would banish competition would also have to banish free cooperation. All that would be left would be forced cooperation, with the state dictating the terms. Compulsory cooperation is what went on in the gulag and concentration camp. In fact, there's nothing cooperative about it at all. It's just compulsion."

Sheldon Richman
Ideas on Liberty
June 2003
Library Topic

"Prices adjust to equate how much people want to buy with how much they want to sell.

And if people want to buy more than they did before, prices rise. If people want to sell more than they did before, prices fall.

Supply and demand. Buyers are competing with each other. Sellers are competing with each other.

The prices we observe emerge from this competition."

Russell Roberts
Library of Economics and Liberty
June 4, 2007
Library Topic

"In this regard, we recognize that when innovation leads to dynamic efficiency improvements and a period of market power, it is not a departure from competition, but it is a particular type of competition, and one that we should be careful not to mistake for a violation of the antitrust laws."

Thomas O. Barnett
Presentation to the George Mason University Law Review 11th Annual Symposium on Antitrust
U.S. Department of Justice
October 31, 2007
Library Topic

"Economic competition takes place in markets - meeting grounds of intending suppliers and buyers. Typically, a few sellers compete to attract favorable offers from prospective buyers. Similarly, intending buyers compete to obtain good offers from suppliers. When a contract is concluded, the buyer and seller exchange property rights in a good, service, or asset. Everyone interacts voluntarily, motivated by self-interest."

Wolfgang Kasper
The Concise Encyclopedia of Economics
Library of Economics and Liberty
2008
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Commentary or Blog Post

"It is no secret that small businesses are losing ground in California. Every neighborhood throughout the state has stores with shuttered windows and doors. Every neighborhood can point to lost jobs and disappearing small businesses. California's attractions appear to be running thin, as its residents can't live on mild weather and beautiful scenery alone."

"Back in 2005, Rainbough Phillips at Distributed Republic had the splendid idea of a Capitalism Appreciation Day. She walked the reader through her day expressing her appreciation for every for-profit...

Competition for scarce resources is the core concept around which all modern economics is built.

Richman presents the case that competition in a free society is how people cooperate with each other without compulsion or the "rule of the jungle."

"What are the consequences for youth who compete and lose?

Carole Ames (1984) looked at the results of several studies on losing in competitive experiences. She found serious consequences for children who fail in competitive situations and events. Youth who do not win exhibit more negative behavior towards themselves, lower levels of satisfaction towards themselves, and more feelings of...

"Jestina Clayton is the type of entrepreneur we should be encouraging if we want to put more Americans back to work. Instead, the state of Utah shut her down. Her offense? To help support her young family while her husband was in school, Jestina turned to a skill she learned growing up in her native Sierra Leone: African-style hairbraiding. But Utah said that braiding required a cosmetology license, which requires 2,000 hours of training at a cosmetology school -- which, in turn, teaches little or nothing about African hairbraiding."

"The Institute for Justice Arizona Chapter helped secure a major economic liberty victory for Essence Farmer and other aspiring natural hairbraiders in Arizona when the state legislature passed in April 2004 a law exempting braiders from the State's cosmetology licensing scheme."

These remarks were written upon the retirement of Israel M. Kirzner, a prominent Austrian economist. Ebeling describes Kirzner's life and his contribution to economics, particularly in the area of entrepreneurship. Ebeling then goes on to elaborate about Kirzner's influence on the study of entrepreneurship, noting that, "In Israel Kirzner’s view, one of the most important reasons for open,...

"Intense training schedules. Pressure to win and be the best. Painful injuries. Given all these factors, it’s not surprising that some athletes simply burn out on their sport. But what is shocking to many in the field are the young ages at which this is increasingly happening -- sometimes as early as 9 or 10.

The scenario often goes something like this: Eager to nurture the next A-Rod...

"Licensing laws protect established attorneys from competition by burdening potential competitors from other states with superfluous and costly entry requirements. These rules limit competition through imposing entry barriers and blocking interstate mobility. Minnesota protects its own lawyers from additional competition by requiring attorneys to attend only law schools accredited by the American Bar Association...."

"In my research on the childhoods of successful women, winning in competition was the most frequently mentioned positive experience. Furthermore, many women described defining moments where they learned from their losing experiences. Winning can be exhilarating and motivating for all children, and all children can learn from losing experiences."

"When it comes to competition, we Americans typically recognize only two legitimate positions: enthusiastic support and qualified support.

The first view holds that the more we immerse our children (and ourselves) in rivalry, the better. Competition builds character and produces excellence. The second stance admits that our society has gotten carried away with the need to be Number One...

The judge in the Microsoft antitrust trial, Thomas Penfield Jackson, recently stated that he 'didn’t see a distinction' between Bill Gates’s Microsoft Corporation and John D. Rockefeller’s Standard Oil Company.

"It is disturbingly easy for arguments originally employed on behalf of the free market to be turned against it. In this article I hope to redeem the concept of competition, which perhaps more than any other has been corrupted into the service of the state."

"Should Congress fail to fund the alternate engine, there will be only one type of engine available for a plane--the JSF--that will constitute 90 percent of all U.S. fighters in 2035. Because it is a single-engine plane as opposed to dual-engine, if something goes wrong with the engine, it could lead to a system-wide grounding of every aircraft until the problem is identified and fixed--unless...

The AP History view of the 'robber barons' like John D. Rockefeller is that they monopolized entire industries, forced smaller competitors out of business ... and generally did all of this much to the detriment of the American consumers.

Chart or Graph

A chart showing the dual economy in Japan and how competition drives efficiency and productivity.

Chart shows effect of competition on generic drug prices.

A diagram of market demand in relation to individual firm demand.

A study of worldwide evidence indicated that market schools - such as private schools that can compete on the free market - tend to have significant advantage in the area of achievement over schools run by government monopoly.

Created by G.F. Keller in 1882, this cartoon depicts the octopus-like reach of the railroad industry monopoly.

John D. Rockefeller founded the Standard Oil Company in 1870. He retired from Standard Oil in 1897. Look at what happened to the price of oil during the time he ran the company.

When Alexander Graham Bell patented the telephone on March 7, 1876, few people realized just how important his new invention would become for American commerce and society in general. America was still in love with the telegraph and saw little immediate use for the telephone.

Analysis Report White Paper

"Overall, as competition intensity increased over time, prices declined. The outlook is for continuing price decreases in average price with average prices of cable, telecom, and emerging broadband technologies tightly clustering at levels well below today's average broadband prices."

"Jarrell (1978) found that electricity prices rose in states that adopted state regulation before 1917, suggesting that regulators were 'captured' by the interests of the regulated electric utilities. An alternative explanation is that state regulation more credibly protected specialized utility assets from regulatory opportunism than did the municipal franchise contracting that preceded it. We test this alternative hypothesis using a panel of data from the U.S. Electrical Censuses of 1902-1937. We find that the shift from municipal to state regulation was associated with a substantial decrease in investment propensity, an outcome strongly supporting the capture hypothesis."

The courts have a proven track record of fashioning balanced remedies for the copyright challenges created by new technologies.

"Would large-scale, free-market reforms improve educational outcomes for American children? This question cannot be reliably answered by looking exclusively at domestic evidence, much less by looking exclusively at existing 'school choice' programs.

In this article, I shall explore two strands of Austrian economics—theories of competition and of entrepreneurship—and their implications for public-choice theory. The first section notes some limitations of applying the neoclassical competitive model to the study of political decision making.

"Economic planners of a country want to allocate scarce resources optimally such that it maximizes overall welfare. Since an economy consists of various economic agents with diverse interests, allocating resources optimally becomes an intricate task. Economic planners have two mutually opposing means to solve this allocation problem: planning versus competition.

"Whatever one's personal interest or objective may be-businessman, sculptor, or preacher — the consequence of pursuing it puts him in competition with all who share that objective. That being the case, preoccuption with promoting competition is at best a diversion of effort which could have been used to protect private property and freedom of contract."

"This paper presents, in non-technical terms, an 'Austrian' view of how a market economy works. The theory is 'Austrian' in its being derived from insights which matured during the course of the century and a quarter history of the Austrian tradition."

This piece suggests that a better way to deal with teacher union problems would be to introduce competition into the teacher union market. Lieberman ways in which a competitive teacher union market would drive down costs for teachers, provide better representation, and also enable a friendlier environment to the idea of school choice.

Competition increases deontological commitments, deontological commitments towards outgroup members, and donations by productive workers, though it decreases donations by less productive workers.

"A monopoly is an enterprise that is the only seller of a good or service. In the absence of government intervention, a monopoly is free to set any price it chooses and will usually set the price that yields the largest possible profit."

One of the roles of government, debated even among those of a libertarian or small government perspective, is that of regulating monopolies and ensuring competition.

"The U.S. state that has pioneered the open enrollment concept the furthest is Minnesota. And indeed much interest and excitement is being shown there this year because of what is thought to be a crucial new modification. The state has announced that up to $4,000 in state aid will move with each child who transfers from one public school to another."

Since the passage of the 1978 Airline Deregulation Act, air travelers in the United States have enjoyed lower fares and greater choice in service. Despite the success of domestic liberalization in the United States, the European Union, and elsewhere, international air travel is still heavily regulated, and the U.S. domestic air travel market remains closed to foreign competition.

This PowerPoint Presentation explains the economic theory of perfect competition. It is based on Chapter 11 of David Colander's textbook, Economics.

"The doctrine of 'pure and perfect competition' is a central element both in contemporary economic theory and in the practice of the Anti-Trust Division of the Department of Justice."

"The most frequently asked questions about school choice are: Do public schools respond constructively to competition induced by school choice, by raising their own productivity? Does students’ achievement rise when they attend voucher or charter schools? Do voucher and charter schools end up with a selection of the better students ('cream-skim')?"

"Unfortunately, the Sherman Act was never intended to protect competition. It was a blatantly protectionist act designed to shield smaller and less efficient businesses from their larger competitors. There never was a golden age of antitrust. The standard account of the origins of antitrust is a myth."

"This study provides a powerful demonstration of the real world impact of increased competition. By presenting six market case studies drawn from a variety of sectors it gives evidence of the type and magnitude of the benefits following market interventions to develop competition and free up the operation of these sectors."

Campaign finance reform usually manages to promote more government regulation of elections, candidates, and the constituents who support them. In turn, this regulation tends to specifically help one group of people more than another, namely, incumbents of political offices.

The political air is now filled with proposals, of which President Reagan's 'New Federalism' is only the most dramatic, to turn various activities of the federal government over, or back, to the states. Among those activities is regulation: environmental regulation in particular, but other sorts as well.

Point of departure for market regulation is that enhancing competition helps maximizing social surplus since consumer discipline stimulates innovativeness, quality improvements, and cost effectiveness. These effects however, can only take place if several conditions are met.

We study the effect of market structure on a personal computer manufacturer’s decision to adopt new technology. This industry is unusual because there exist two horizontally segmented retail markets with different degrees of competition: the IBM-compatible (or PC) platform and the Apple platform.

"Most so-called public utilities have been granted governmental franchise monopolies because they are thought to be 'natural monopolies.'"

Competition among scientists for funding, positions and prestige, among other things, is often seen as a salutary driving force in U.S. science. Its effects on scientists, their work and their relationships are seldom considered.

"The combined effect of those policies was enough to kill telephone competition just as it was gaining momentum. Hopefully, by understanding exactly how those policies encouraged the growth of a telephone monopoly, policymakers can craft more pro-competitive legislation in the future."

The performance of the railroad industry since 1980 provides a vivid illustration of the benefits of regulatory reform. Productivity has leaped upward, rail rates have fallen somewhat in real terms, and the 50-year decline in the railroads' share of traffic has finally come to an end.

"My three sons, ages seven to twelve, suffer from a chronic condition I've heard described by economist John Baden as ironitis—the love of anything made of metal. They are fascinated by cars, trucks, backhoes, tractors and—well, you get the idea. The other day, my middle son suggested that my next car should be a convertible.

Video/Podcast/Media

"Israel Kirzner discusses the Austrian Approach to Competition at the Department of Economics of the University of Colorado on March 6th, 1978."

"The eighth in a series of ten lectures, from 'Fundamentals of Economic Analysis: A Causal-Realist Approach.'"

"This panel will assess American federalism as a competitive institution that offers a marketplace of state regulatory regimes. With the recession impacting some states more heavily than others, it is time to ask whether interstate competition is good for the nation. Should state-by-state approaches to issues such as healthcare, financial regulation, environmental...

The "Free to Choose" video series has had a tremendous impact on many people's perceptions of competition, capitalism, socialism, regulation, and freedom in general. The first version of this series was released in the early 1980s during the Cold War. Back then, the free and prosperous societies of the West and the East stood in stark contrast to the societies behind the Iron Curtain in...

"Cato’s Isabel Santa uses school choice as an example of why competition is better than government-imposed monopolies. The video explains that government schools cost more and deliver less, which is exactly what one might expect when there is an inefficient monopoly structure. The evidence about the school-choice systems in Sweden, Chile, and the Netherlands is particularly impressive."

Milton Friedman explains how competition works in education through the medium of school choice.

"This Center for Freedom and Prosperity Foundation Economics 101 video succinctly explains why tax competition restrains excessive government since politicians realize that jobs and investment can cross bordes if they get too greedy and impose punitive tax policy."

"This tutorial looks at markets that are deemed to have "perfect competition." This means that there are many players with identical products, no barriers to entry, no advantage for existing players and good pricing information. Few to no real market completely matches this theoretical ideal, but many are close. Even the example we use in this tutorial (the airline industry) isn't quite perfect (you should think about why)."

"Prof. Lynne Kiesling discusses the history of regulating electricity monopolies in America."

Thomas DiLorenzo lectures on the Myth of Natural Monopoly at the 2006 Steven Berger Seminar."

"Federal, state and local agencies, universities, non-profit organizations, prison industries, and other government sponsored and supported entities engage in commercially available activities that result in unfair government competition with private enterprise. This adversely affects the U.S. economy by duplicating activities available from commercial providers, increasing the government...

Reed explains the many flaws with the prevailing theory that Standard Oil was a monopoly or that the company's founder and president, John Rockefeller, was exploitative....

Primary Document

"How do firms allocate their lobbying resources among their political goals? We approach this question using a game-theoretic model that integrates three concepts from the lobbying literature: the distinction between private and collective rents, the level of competition, and the impacts of political institutions. The model demonstrates how rent competition and political institutions affect...

This economic classic is noted for providing us with terms for and expositions of such key economic ideas as the division of labor, "invisible hand," self-interest as a beneficial force, and freedom of trade.

"This Circular establishes Federal policy regarding the performance of commercial activities and implements the statutory requirements of the Federal Activities Inventory Reform Act of 1998, Public Law 105-270. The Supplement to this Circular sets forth the procedures for determining whether commercial activities should be performed under contract with commercial sources or in-house using...

"The word competition has been thus defined by a French lexicographer: 'The aspiration of two or more persons to the same office, dignity or any other advantage.' This is, indeed, in harmony with its etymological meaning. Two or more individuals aspire at the same time to the same position, to the same dignity, to the same advantage, no matter what; they vie with each other to obtain it; there...

"It would not be easy to defend macroeconomists against the charge that for 40 or 50 years they have investigated competition primarily under assumptions which, if they were actually true, would make competition completely useless and uninteresting. If anyone actually knew everything that economic theory designated as “data,” competition would indeed be a highly wasteful method of securing...

Kirzner delves into competition and the market process, as well as compares critiques of government regulation on competition and the market process from the "neoclassical" paradigm and the "Austrian" paradigm.

Economists and legal scholars around the globe now recognize the benefits of competition to consumers and to the economy as a whole.

"Frédéric Bastiat has said that the Harmonies is a counterpart to Economic Sophisms, and, while the latter pulls down, the Harmonies builds up. Charles Gide and Charles Rist in a standard treatise, A History of Economic Doctrines, have referred to 'the beautiful unity of conception of the Harmonies,' and added, 'we are by no means certain that the...

We know from years of patient refinement that competition insures the achievement of a Pareto optimum under certain hypotheses.

Henry Hazlitt's classic primer outlines a straightforward and accessible portrayal of free-market economics. An unshackled market, Hazlitt says, is the only path to "full production".

"Entrepreneurial discovery is seen as gradually but systematically pushing back the boundaries of sheer ignorance, in this way increasing mutual awareness among market participants and thus, in turn, driving prices, output and input quantities and qualities, toward the values consistent with equilibrium...."

"Generic competition is associated with lower drug prices, with the entry of the second generic competitor being associated with the largest price reduction. We base this conclusion on an analysis of IMS retail sales data for single-ingredient brand name and generic drug products sold in the U.S. from 1999 through 2004."

Mises explained economic phenomena as the outcomes of countless conscious, purposive actions, choices, and preferences of individuals, each of whom was trying as best as he or she could ... to attain ... wants and ... avoid ... consequences.

"If you are looking to acquaint yourself with F.A. Hayek's perspective on economic theory--beyond his business cycle and monetary studies of the interwar years--this is the best source. The collection appeared in 1947, before he moved on toward broader cultural and social investigations. It contains his most profound work on the liberal economic order, and his most penetrating reflections on...

"For children who are not into organized team sports, having fun and staying active can be a challenge. But, with the help of a cool new movement called VERB.™ It's what you do., it’s as easy as a hop, a skip and a jump."

Man, Economy and the State provides a sweeping presentation of Austrian economic theory, a reconstruction of many aspects of that theory, a rigorous criticism of alternative schools, and an inspiring look at a science of liberty that concerns nearly everything and should concern everyone.

"Good morning and thank you for inviting me to speak. Today, I want to step back from details about the practice of antitrust enforcement and focus instead on the policy and the economics of what United States antitrust enforcement is trying to achieve. Therefore, I will begin with the policy and economics in the abstract, then I will apply these principles to the day-to-day of the Antitrust Division's enforcement practices."

"John Stuart Mill (1806-1873) originally wrote the Principles of Political Economy, with some of their Applications to Social Philosophy very quickly, having studied economics under the rigorous tutelage of his father, James, since his youth." Book II specifically speaks about the issues involved with the distribution of wealth and property.

"The Sherman Act authorized the Federal Government to institute proceedings against trusts in order to dissolve them. Any combination 'in the form of trust or otherwise that was in restraint of trade or commerce among the several states, or with foreign nations' was declared illegal. Persons forming such combinations were subject to fines of $5,000 and a year in jail. Individuals and companies...

Kirzner looks at a few different definitions of competition and how those definitions play out within the confines of antitrust laws.

"Good afternoon. This is my first trip to Japan, and I am delighted both to visit your beautiful country and to have an opportunity to speak with you today about my favorite topic: competition. I should make clear at the outset that I am an unabashed advocate for competition. I believe, as do my colleagues at the Justice Department and the Federal Trade Commission, that sound competition policy and strong competition law enforcement are critical to the efficient operation of free markets and to economic growth."

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