What Is Workable Competition, Anyway (and Why Should We Care)
14 Pages Posted: 7 Dec 2016
Date Written: December 4, 2016
The necessity for some form of a model of workable competition is the impossibility of a perfectly competitive market. Yet, in economic regulation and antitrust, judgments must be made whether a market is sufficiently competitive to justify regulatory restraint. This paper briefly reviews the history of the concept, and presents an argument that determination of workable competition is analytically intractable. Therefore, a real world economist needs to rely on descriptive analysis of markets in conjunction with economic models and econometrics in determining whether an actual market is "workably competitive."
Keywords: Workable Competition, Market Power, Economic Policy
JEL Classification: B21, B52, D40, D43, K21, K23, L10, L40, L50
Suggested Citation: Suggested Citation