Taylor and Francis Alternative Theories of Competition

Conventional theory and policy either assume that markets are perfectly competitive or that they are imperfectly competitive, thus leading to prevailing views on monopoly. Neoclassical economists advocating laissez faire assume that perfectly competitive markets are attainable while those economists advocating State intervention assume the existence of "market failure," caused by "market imperfections" and externalities. This book takes a radically different approach to the analysis of competition by rejecting the perfect vs. imperfect competition dichotomy. Drawing on the insights of classical political economists such as Marx, Schumpeter, Hayek and Andrews, this book provides a fresh analysis of the competitive process, supported by very real dynamics of capitalism. The central theme of this volume is that there are crucial flaws in the conventional analysis of competition. These alternative theories of competition are carefully contrasted with the conventional one in theoretical, historical, and empirical terms.