ECONOMIC ANALYSIS OF THE DEMAND FOR EGYPTIAN ORANGE EXPORTS IN WORLD MARKETS تحلیل اقتصادى للطلب على صادرات البرتقال المصرى فى الاسواق العالمیة

2014 ◽  
Vol 5 (1) ◽  
pp. 141-149
Author(s):  
على على
Keyword(s):  
Economic Analysis ◽  
World Markets

The Theory of Competitive Markets

2021 ◽  
pp. 15-22
Author(s):  
John N. Drobak
Keyword(s):  
Resource Allocation ◽  
Economic Analysis ◽  
Real World ◽  
Government Regulation ◽  
Consumer Preferences ◽  
Economic Education ◽  
Competitive Markets ◽  
Consumer Sovereignty ◽  
World Markets ◽  
Necessary Constraints

Chapter 2 explains how the theory of competitive markets became the benchmark for economic analysis, implicitly leading to the assumption that firms actually compete in real-world markets rather than acting as oligopolies. The chapter begins by showing how competition theoretically maximizes resource allocation and constrains the behavior of firms. Then it analyzes the assumptions that underlie the theory, emphasizing the problems that stem from the assumption of consumer sovereignty and the ability of producers to manipulate consumer preferences. It also explains how the assumption that markets are competitive became the paradigm of economic education, as advocated by Alfred Marshall, rather than recognizing the prevalence of monopolies and oligopolies, as advocated by Marshall’s successor, Joan Robinson. Finally, the chapter shows how the assumption that real-world markets are competitive is used to justify opposition to government regulation, based on the notion that competition already provides the only necessary constraints.

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