Monthly Archives: November 2015

When is competition beneficial?

Over on DanThinksAbout, in a discussion of the public and private sectors, Dan mentions the benefit of markets: that “competing firms innovate in the hope of getting ahead, and successful innovations make the firms that adopt them successful”. This left me thinking about the nature of competition, and of how it leads us to expend our effort. When it is beneficial?

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When we think about competition in markets, we tend to think about Asus, Dell and Lenovo all competing to build better laptops at lower cost, and the resulting downward pressure on prices — which is obviously good for consumers.

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