Theory of Capital and Interest


The Idea of Competition in Economics, and Implications for Monopoly Policy

21 de agosto de 1996   | Vistas: 72 |  

There are different ideas of competition in economics. Mainstream economics defines a static competition with an infinite number of sellers and buyers, perfect knowledge, while Austrian economics defines a dynamic competition that promotes entrepreneurial activity, innovation, and differentiation. Most real world competitive practices are condemned as monopolistic by static competition. The real definition of competition is freedom of entry. Governments can block competition by protecting local industries, or by creating patents and licenses. The consumer is protected by freedom of entry, innovation, and entrepreneurship and not by monopoly policies, regulations, or licenses.

Israel Kirzner is a leading economist of the Austrian School of Economics. He is professor emeritus of economics at New…


Nuestra misión es la enseñanza y difusión de los principios éticos, jurídicos y económicos de una sociedad de personas libres y responsables.

Universidad Francisco Marroquín