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If competition is controlled then there's less competition and one can expect efficiency to drop down ceteris paribus. Now you have to explain why controlling c
by ttoinou 9y ago
If competition is controlled then there's less competition and one can expect efficiency to drop down ceteris paribus. Now you have to explain why controlling competition could lead into better quality or cheaper prices. (The only thing I see is that it could let governments keep more money, thus more power ?)
fine quality product at a good price even without competition at all
Threat of competition is also a form of competition (for example a software product not protected with patents, anyone could compete so the producer offers good prices)
- Can_Not 9y agoThe US is really big, if there's not a mis-configured regulation, adding overseas competition won't really increase efficiency as the perfectly sperical market in a vacuum equation suggests.
- ttoinou 9y agoMaths have nothing to do with economics. I said efficiency as a way of comparing market offer from the point of view of customers (you can picture the formula "quality/price" if you want but that doesn't mean that it is objectively & mathematically defined), meaning that prices go down and/or quality increases mis-configured regulation Do you have examples of good protectionist regulation ? And no I gave a specific example with software patents so even if the US is big enough it can benefits from outside products
- Can_Not 9y agoIf we're talking about efficiency from the customer point of view, I can pay full price for American goods on Amazon but receive garbage-cheap Chinese knock-offs in the mail.
- ttoinou 9y agoI don't even understand what you are trying to prove. That some sellers are not trust worthy ? That there will always be an intermediary taking the profit ?