An Evolutionary Theory of Competition

Abstract

In this paper, an evolutionary theory of market competition is developed. It is rooted in concepts of Smith, Hayek and Schumpeter but also includes modern insights of economic theory in regard to cognitive economics and innovation economics. Next to conceptual and methodological differences, the theory diverges from standard theory by highlighting the meaning and role of diversity as a driving-force of evolutionary competition.

Keywords: Evolutionary competition, market process theory, knowledge generation, innovation and competition, evolutionary economics

JEL Classification: L40, H77, B52, L10