Alternative Theories of Competition

This book explores competition by challenging the traditional perfect versus imperfect competition framework, drawing on classical economists' insights to present competition as a dynamic disequilibrium process rather than a static state.

Alternative Theories of Competition presents a novel perspective on competition by moving beyond the traditional dichotomy of perfect versus imperfect competition. The authors draw on the insights of classical political economists, including Marx, Schumpeter, and Hayek, to explore the complexities of market dynamics. This book aims to contribute to the ongoing debate about market competition by posing critical questions that challenge established assumptions within both neoclassical and Kaleckian frameworks.

Historically, policymaking has been influenced by two opposing views on markets. Proponents of Keynesian policies often argue that markets are inherently imperfect, while advocates of laissez-faire economics believe that free-market policies can rectify these imperfections and restore perfect competition. The authors of this book seek to navigate this contentious landscape by emphasizing that competition should be viewed as a dynamic process characterized by disequilibrium, rather than a static state of equilibrium, which is commonly held in conventional economic theory.

Throughout the volume, various contributors present differing theoretical perspectives, yet they share a common theme of redefining competition. They argue that the growth of firms can lead to increased competitiveness, aligning with the views of classical economists and Schumpeter, rather than suggesting a decline in competition as indicated by traditional monopoly capital theories. This book ultimately invites readers to reconsider their understanding of competition and its implications for economic policy and theory.