I never really understood the need to compete in such underhanded ways. I mean, as an individual, once you've got enough money to live the rest of your life and never work again, why bother?
The original idea behind competitive markets was that competition between "firms" would lead to better products and lower prices. The idea here being that when two or more firms try to sell to the same market they would need to compete for customer money by producing better products at lower prices. The winner of that competition was supposed to be the firm that produced the best product at the lowest price, not the firm that simply used its weight to bully potentially better products out of the market.
The initial idea, as it was proposed by Adam Smith, is flawed because it surmises that firms would all play fair. Perhaps Adam Smith's figuring was that there was no need to play unfairly because once one reached the level where they could bully better products out of the market they wouldn't bother because they had already made enough money to live comfortably and never work again. Plus they, themselves, would stand to benefit from better products. I guess he didn't count on egos getting in the way thereby preventing people from making smart choices.
The original idea behind competitive markets was that competition between "firms" would lead to better products and lower prices. The idea here being that when two or more firms try to sell to the same market they would need to compete for customer money by producing better products at lower prices. The winner of that competition was supposed to be the firm that produced the best product at the lowest price, not the firm that simply used its weight to bully potentially better products out of the market.
The initial idea, as it was proposed by Adam Smith, is flawed because it surmises that firms would all play fair. Perhaps Adam Smith's figuring was that there was no need to play unfairly because once one reached the level where they could bully better products out of the market they wouldn't bother because they had already made enough money to live comfortably and never work again. Plus they, themselves, would stand to benefit from better products. I guess he didn't count on egos getting in the way thereby preventing people from making smart choices.
Statistics: Posted by Dr Cheeto Cornchip — 2024-02-29 14:28 — Replies 1 — Views 53