Abstract
An important issue in the theory of industrial organization involves the question of market performance. This paper deals with the static-dynamic efficiency trade-off. Theories of competition are reviewed and classified. The concept of workable competition offers a verbal listing of conditions facilitating both efficiency dimensions. A crucial feature of workable competition is the force of potential rivalry. The study of sources of potential entry and market games identifies cases of intermediate competition which can serve as a welfare-theoretic yardstick for the evaluation of market performance. The nature of multimarket competition proves to be essential.
Original language | English |
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Pages (from-to) | 109-139 |
Number of pages | 31 |
Journal | De Economist |
Volume | 140 |
Issue number | 1 |
DOIs | |
Publication status | Published - 1 Mar 1992 |