Economic competition threatens equity in the delivery of health care. This essay examines four of the various ways in which it does that: the reduction of charity care, increased patient cost-sharing, "cream-skimming" of healthy subscribers, and lack of information to patients about rationed care that is not prescribed. In all four cases, society must guard against distinct inequities and injustices, but also in all four, either the particular problem is not inherent in competition or, though inherent, it (...) is not irremediable. Competition therefore cannot be finally morally accepted or rejected as an economic structure for delivering health care without knowing what among a wide range of supplementary things our society is actually going to do with it. Keywords: for-profit medicine, competition, patient-physician relationship, informed consent CiteULike Connotea Del.icio.us What's this? (shrink)

Commonly accepted dictates of morality clash with the a priori laws of free economic competition. These divergent directives — that stem from the essence of their sources and cannot be changed or negated without altering their sources — contradict each other and so set up conflicts of the most fundamental kind in men's psyches (or souls). In addition, this clash of moralities implies a most serious question respecting real freedom under a system of so-called free-enterprise. For, if in (...) order to thrive, we must perform actions that at the same time violate our own moral self respect, we cannot call ourselves free. (shrink)

Abstract In ?The Worth of Nations? I proposed that nationalism was a major factor in the emergence of the modem, growth?oriented economy. In response to criticisms, I demonstrate here the nationalistic inspiration of seventeenth?century English?or British?economic tracts. Urging a reconsideration of earlier approaches (such as that of W.W. Rostow) to the problem of why?rather than how?the modern economy emerged, I agree with Max Weber's challenge to the naturalness of our proclivity for constant economic expansion, while departing from his (...) explanation for it. (shrink)

Mexico has long suffered from poverty. Two common government approaches to poverty reduction are public spending for social programs, and public spending for economic competitiveness programs. This article summarizes the nature and effects of these two approaches based on information published in Mexican journals and international research institution reports written in Spanish. Since 1990, public spending for social programs has increased at an annual rate of 7%, whereas spending for economic competitiveness programs has become stagnant. Researchers report that: (...) (1) spending on social programs may not be the primary cause for poverty reduction, (2) social programs may not be reaching those with the greatest need, and (3) social program spending may be causing a decrease in productivity and economic growth. More resources are needed for economic competitiveness programs that increase workforce productivity and well-paid jobs. (shrink)

This article stems from an awareness that the ‘European social model’ is marked – in the discourse that proposes it and in the policies that attempt to implement it – by an original combination of the dimensions of economic competitiveness and social cohesion. Today, this combination is in the midst of a crisis whose nature and outcome are variously interpreted, in politics as in social sciences. The current debate would have much to gain from the use of several classic (...) analytical categories, which, though well enough known, are rarely if ever applied in this context. After a schematic presentation of the characteristics that discussion of the European model has now assumed, an institutional approach to interpreting it will be proposed which revolves around the Weberian concept of ‘legitimate order’. Particular attention will be devoted to the organizational means whereby policies are formulated and pursued, and the territorial dimension of policies and their effects will be discussed. The concluding remarks will present policy implications and considerations concerning the present crisis and possible developments of the European model, elaborated on the basis of the proposed methodological approach. (shrink)

When we talk about ideology and new genetics we tend to think of concepts like geneticisation and genetic essentialism, which present genetics and biology in deterministic terms. However, the aim of this article is to consider how a particular economic ideology - neoliberalism - has affected the bioeconomy rather than assuming that it is the inherent qualities of biotechnology that determine market value. In order to do this, the paper focuses on the discourses and practices of economic competitiveness (...) that pervade biotechnology policy-making in the UK, Europe and the USA. Finally it will consider how the manufacture of scarcity - in order to produce the bioeconomy - has led to a problematic focus on a specific innovation paradigm that may prove detrimental to the development and distribution of new biotechnologies. (shrink)

Based on the global urban economic competitiveness data in 2017, this study conducts coupling analyses of the competitiveness indicator system. The comprehensive study on the coupling coordination degree among explanatory indexes of urban economic competitiveness concludes that the city with higher economic competitiveness rankings has a higher degree of coupling coordination ; the city ranked lower in the economic competitiveness has a lower DCC. The cities with higher DCC are mainly those global cities or metropolis known (...) for financial and technological innovations, while cities with bare coupling coordination are mainly in underdeveloped countries in Asia, Africa, and Latin America. Based on the findings, the paper employs a model that combines linear regression and quantile regression to identify the specific driving factors that affect the cities’ competitiveness around the world. Therefore, every city should act according to local conditions, focus on the key drivers of urban development, and address the inadequacies to balance the economic development so as to enhance its competitiveness. (shrink)

Status anxiety, the constant concern about individuals’ position on the social ladder, negatively affects social cohesion, health, and wellbeing. Given previous findings showing that status anxiety is associated with economic inequality, we aimed in this research to test this association experimentally. A cross-sectional study was run in order to discard confounding effects of the relationship between perceived economic inequality and status anxiety, and to explore the mediating role of a competitive climate. Then we predicted that people assigned to (...) a condition of high inequality would perceive more status anxiety in their social context, and they would themselves report higher status anxiety. Thus, in an experimental study PEI was manipulated. In Study 1, PEI uniquely predicted status anxiety, and perceived competitiveness mediated the relationship. In Study 2 PEI increased perceived contextual status anxiety, a specific form of perceived competitiveness based on socioeconomic status. Moreover, preliminary evidence of an indirect effect was found from PEI to personal status anxiety, through perceived contextual status anxiety. These preliminary findings provide experimental evidence for the effects of economic inequality on status anxiety and the mechanism involved. Economic inequality makes people feel that they live in a society where they are constantly concerned and competing with each other for their SES. These results could have important implications as health and wellbeing could be promoted by reducing economic inequalities and the competitive and materialistic environments of our societies. (shrink)

Competition law is rooted in economic theory, and economics provides many of the standard tools often applied in competition investigations. As a result, a strong foundation in economics is an invaluable asset for practitioners in this area of law. This is the new edition of the popular and well-regarded practitioner guide to the economic principles of competition law. Written in accessible language for non-technical readers, it covers first economic principles by applying them directly to (...) competition cases. It covers all major topics in competition law where economics is relevant: the core themes of market definition, market power and dominance, mergers, and anti-competition practice, as well as less familiar but important areas such as state aid, remedy design and damages. Topics are introduced by posing compelling questions based on real cases from around the world. The new edition has been updated to include important recent developments in competition law, and new economic approaches. (shrink)

Neoclassical and Austrian/evolutionary economic paradigms have different implications for integrating corporate social responsibility (corporate citizenship) and competitive strategy. porter's "Five Forces" model implicitly rests on neoclassical theory of the firm and is not easily reconciled with corporate social responsibility. Resource-based models of competitive strategy do not explicitly embrace a particular economic paradigm, but to the extent their conceptualization rests on neoclassical assumptions such as imperfect factor markets and profits as rents, these models also imply a trade-off between competitive (...) advantage and corporate social responsibility. Differences in Austrian/evolutionary economic model's assumptions about equilibrium, profits, and other economic concepts allow this paradigm to embrace alternative views of strategy such as the activities or dynamic capabilities views. These alternative views of strategy focus on learning and adaptation; they align more easily with corporate social responsibility. In practice this alignment comes about because social engagement facilitates the learning and adaptation that are a source of competitive advantage. Among the many business arguments for CSR such as improved employee morale/productivity or brand differentiation, this view prioritizes innovation. (shrink)

Mark Blaug and I agree that if there is a realist interpretation of economic behavior to be discerned in Friedman, it is to be found not in Friedman's belief that the profit motive overrides other possible motives, but in his belief that a selection mechanism is working in competitive markets. Our joint sympathy for evolutionary economics is largely based on a conviction that the conception of competition as a dynamic evolutionary process is rather plausible. We disagree, however, on (...) two issues: first, how important the evolutionary conception was for Friedman's overall argument; and, second, whether we can learn something about the real world from rigorous formal analytical models. In this article, I explain and argue for my position on these two issues, and use Nelson and Winter's theory of evolutionary economics to support an illustrate my argument. (shrink)

Governments, or at least the clever ones among them, are aware of the factors guiding business activities. In the course of adopting and enforcing economic legislation, they seek to attract business activities in order to increase national income, generate employment opportunities, and, very generally, please voters. Hence economic law may be considered an economic good, as suggested by the title of this book. That function, which most rules of economic law have in the competition of (...) systems, was strengthened by the worldwide liberalization of trade. Today, it is of greater significance than ever before. Lawyers, economists, academics, and practitioners, from inside and outside Germany, have taken a look at the facts and have discussed approaches to conceptualizing them. The resulting 30 essays, collected in this volume, contribute to the interpretation of existing, and the making of new, economic law. (shrink)

Competitive Governments, explores in a systematic way the hypothesis that governments are internally competitive, that they are competitive in their relations with each other and in their relations with other institutions in society which, like them, supply consuming households with goods and services. Breton contends that competition not only serves to bring the political system to an equilibrium, but it also leads to a revelation of the households' true demand functions for publicly provided goods and services and to the (...) molding of a link between the quantities and the qualities demanded and supplied and the tax prices paid for these goods and services. In the real world where information is costly, the links may not be first-best, but they will be efficient if competition is vigorous. (shrink)

The economic theory of contract is being reshaped in ways which resonate with the findings of socio-legal contract scholars and of industrial economists and sociologists in the Marshallian tradition, who emphasise the 'embeddedness' of organizations within their social and cultural environment. Contractual co-operation is seen as depending on institutional factors which serve to enhance 'trust', and arrangements which in the past were criticized as the product of collusion are being reassessed as potentially efficient responses to market failure. An active (...) debate has begun on how instruments of public policy can best be deployed to arrive at an effective balance between co-operation and competition. This affects both the competitiveness of private sector organizations and the success of deregulatory reforms in the public sphere. These issues are explored within four main areas: developments in private-sector contracting; contract and organization in the public sector; the economics of contract law; and competitiveness and competition policy. (shrink)

Economists use various models to explain why it is that firms are capable of pricing above marginal cost. In this paper, we will examine two of them: the Cournot and Bertrand duopoly models. Economists generally accept both models as good explanations of the phenomenon, but the two models contradict each other in various important ways. The puzzle is that two inconsistent explanations are both regarded as good explanations for the same phenomenon. This becomes especially worrisome when the two models are (...) offering divergent policy recommendations. This report presents that puzzle by laying out how the two models contradict each other in a myriad of ways and then offers five possible solutions to that puzzle from various economists, philosophers of science, and philosophers of economics. (shrink)

Amartya Sen has recently told us how he feels he has not yet made his mark as an economist. I notice that he is strangely not named in the background information to an essay competition. It concerns why some nations are wealthy and others poor, names other economists, and even discusses freedom and capabilities. Here I address the question of why Sen is absent and, more generally, at risk of devaluation.

Orthodox economics operates within a hypothesized world of perfect competition in which perfect consumers and firms act to bring about supposedly optimal outcomes. The discrepancies between this model and the reality it claims to address are then attributed to particular imperfections in reality itself. Most heterodox economists seize on this fact and insist that the world is characterized by imperfect competition. But this only ties them to the notion of perfect competition, which remains as their point of (...) departure and base of comparison. There is no imperfection without perfection. In Capitalism, Anwar Shaikh takes a different approach. He demonstrates that most of the central propositions of economic analysis can be derived without any reference to standard devices such as hyperrationality, optimization, perfect competition, perfect information, representative agents, or so-called rational expectations. This perspective allows him to look afresh at virtually all the elements of economic analysis: the laws of demand and supply, the determination of wage and profit rates, technological change, relative prices, interest rates, bond and equity prices, exchange rates, terms and balance of trade, growth, unemployment, inflation, and long booms culminating in recurrent general crises. In every case, Shaikh's innovative theory is applied to modern empirical patterns and contrasted with neoclassical, Keynesian, and Post-Keynesian approaches to the same issues. Shaikh's object of analysis is the economics of capitalism, and he explores the subject in this expansive light. This is how the classical economists, as well as Keynes and Kalecki, approached the issue. Anyone interested in capitalism and economics in general can gain a wealth of knowledge from this ground-breaking text. (shrink)

This book is a collection and reworking of research done by Pascal Salin since around 1990. Salin is an economist in the tradition of the Austrian school of economics. He emphasizes the centrality of individual choice in an uncertain world in which individual actions interact to produce spontaneous orders. But he is no mere conduit of established ideas. He also offers his own highly original insights honed after a lifetime as an economist, one who has earned the respect in which (...) he is now held by his peers worldwide. The book makes delightful reading. Salin covers a lot of ground in this book, mostly within the topics indicated by the title, though in the final two chapters he goes beyond these and into the foundations of economic science. The book is divided into five parts: (1) firms, markets and competition, (2) globalization and international economic problems, (3) monetary integration, (4) money, finance and economic policies, and (5) foundations of economic theory. (shrink)

This article expands Michel Foucault's genealogy of liberalism and neoliberalism by analysing the concept of competition. It addresses four key liberal conceptions of competition in turn: the idea of competition as a destructive but progressive and thus necessary force (roughly 1830–90); economic theories of market equilibrium that theorize competition mathematically (1870 onwards); socio-biological ideas of competition as something natural (1850–1900); and sociological arguments that see competition as adding value to the social (1900–20). From (...) this starting point, the article considers the ways in which three main trajectories of neoliberal thought that emerged from the early 1920s onwards – Austrian, German and American – developed and responded to these conceptualizations of competition. In conclusion, it is argued that this history of the concept of competition leads to a new understanding of the tensions that lie at the heart of neoliberal thought, and which are largely missing from Foucault's account. (shrink)

In four new and nine previously published essays, Joseph Heath provides a compelling new framework for thinking about the moral obligations of economic actors. The "market failures" approach to business ethics that he develops provides the basis for a unified theory of business ethics, corporate law, economic regulation, and the welfare state.

The development of general equilibrium theory represents one of the greatest advances in economic analysis in the latter half of the twentieth century. This book, intended for advanced undergraduates and graduate students, provides a broad introduction to competitive equilibrium analysis with an emphasis on concrete applications. The first three chapters are introductory in nature, paving the way for the more advanced second half of the book. Relative to the competition, it is much more 'user friendly' while offering exceptionally (...) broad coverage of topics. Well-designed and interesting applications help to make potentially abstract material more accessible. The book includes 92 illustrations and nearly 200 exercises. (shrink)

Ageing populations are a major consideration for socio-economic development in the early twenty first century. This demographic change is mainly seen as a threat rather than as an opportunity to improve the quality of human life, especially in Europe, where ageing has resulted in a reduction in economic competitiveness. Economic Foundations for Creative Ageing Policy mixes the silver economy, the creative economy, and the social economy to construct positive solutions for an ageing population. Klimczuk covers theoretical analyses (...) and case study descriptions of good practices to suggest strategies that could be internationally popularized. Contents: Foreword by Harry R. Moody Foreword by Kathrin Komp Introduction 1. Old Age as a Stage in the Life Course and the Life Cycle 2. Forms of Older People’s Capital 3. Creativity and Ageing: Concepts and Controversies 4. Mixed Economy and Multisectoral Approach to Population Ageing 5. Silver, Creative, and Social Economies as Positive Responses to Population Ageing 6. Benefits at the Interface Between Economic Systems Conclusion Afterword by Lukasz Tomczyk. (shrink)

In the era of economic globalization, the competitiveness of products on a global scale is increasingly achieved through effective and sustainable strategies for brand development by the leaders. This paper conducts an empirical study on regional brand competitiveness influencing factors. A research model was proposed and tested by employing structural equation modeling. Data analysis was conducted using 214 valid questionnaires from two major producing areas in Jilin Province, China. Research results show that Brand Market and Government Guidance directly and (...) positively impact the regional BC. Regional Resource and industrial development indirectly impact the regional BC through the mediating role of BM and GG. BM is the most important factor affecting the regional BC. Based on this, the path to improve the competitiveness of traditional agricultural products under economic globalization is determined, and targeted countermeasures and suggestions are formulated for the existing problems. (shrink)

The existing literature often assumes that the target of global interstate economic competition is the overseas market, that is, the markets in third, export-destination countries. However, in many countries, domestic industries compete fiercely for domestic market share with imports from other countries. Such import competition creates policy diffusion between a country and its import-competitor countries. Such policy diffusion can be observed in policy areas that affect production costs of domestic industries. We focus on import competition’s effect (...) on social welfare policies in developing countries and test our theory in two broad types of policies: social insurance spending and progressive social spending. We find strong evidence for import-competition-induced policy diffusion in both policy areas. Moreover, in the case of social insurance, the effect of policy diffusion is mediated by the strength of labor, suggesting that strong labor is more capable of blocking welfare retrenchment policies. (shrink)

The goal of “Inclusive Economics” is to tie together various authoritative strands of contemporary economic theory into an easily comprehensible whole that illuminates the need for a broader approach to contemporary economic policymaking undistorted by obsolete 18th century rationalist assumptions about utility, ethics, worthiness and traditional culture. This is accomplished by elaborating the rationalist competitive ideal along the optimizing lines pioneered by Paul Samuelson (neoclassical economics); plumbing modifications necessitated by Herbert Simon's realist concepts of “bounded rationality” and “satisficing”; (...) refined further by applying a pragmatist outlook to probe the consequences of relaxing Enlightenment teleological, ethical, spiritual and cultural taboos. The exercise will explain why competitive market economies guided by rational utility-seeking invariably are less productive, efficient, just and beneficent than most theorists concede, and will illuminate the full range of interventions needed to achieve better outcomes. We call this program in its entirety “Inclusive Economics”, including the integration of micro and macroeconomics. (shrink)

Exchange is one thing, economic competition another. Exchange is possible without competition; and economic competition (of sorts) is possible without exchange. Put exchange and competition together and, roughly, you get the free market. There are many philosophical discussions of the free market; a sizeable number about free exchange; but - - aside from in the context of consequentialist defences of the market - - who this century has had much to say about economic (...) competition? (shrink)

This book shows that global population ageing is an opportunity to improve the quality of human life rather than a threat to economic competitiveness and stability. It describes the concept of the creative ageing policy as a mix of the silver economy, the creative economy, and the social and solidarity economy for older people. The second volume of Economic Foundations for Creative Ageing Policy focuses on the public policy and management concepts related to the use of the opportunities (...) that are created by population ageing. Klimczuk covers theoretical analyses and case study descriptions of good practices to suggest strategies that could be internationally popularized. Each chapter includes exercises and assignments for both students and those who are likely to apply the presented concepts in practice. Contents: Foreword by Richard Adler Foreword by Dominic Campbell Introduction 1 The Politics of Ageing and the Challenges of Ageing Populations 2 Understanding Public Policy on Ageing 3 Sociological and Gerontological Perspectives on Ageing, Creativity, and the Third Age 4 Diversity of Ageing Policy Concepts 5 The Emergence of the Creative Ageing Movement 6 Aims and Challenges of the Creative Ageing Policy 7 Principles, Governance, and Coproduction of the Creative Ageing Policy 8 Organizational Forms and Management for the Building of Creative Capital of Older People Conclusion Afterword by Andreas Hoff and Kurt Lüscher Afterword by Suchandrima Chakraborty Afterword by Jorge Felix. (shrink)

In the sixth chapter of his study, Wirtschaft, Demokratie und liberaler Sozialismus, Hannes Kuch examines moral pathologies of capitalist society. He argues that such pathologies arise when learning experiences in the market lead to attitudes that have negative effects on other social spheres and undermine the democratic ethos. In this comment, I address two aspects of his thesis: its empirical foundations in behavioural economics, and the new analysis of authoritarianism that it proposes. Kuch’s diagnosis of the moral pathologies of capitalism (...) is based in part on studies in behavioural economics about the moral consequences of market relations. These studies show that market relations can lead to the erosion of moral motives for action in the long term. This tendency can be counteracted if market relations are embedded in constitutional institutions and a trust-building culture. However, the studies that Kuch discusses relate to decisions in which subjects have to choose between money and moral action or have to distribute money, and not to market relations in which competition and rivalry play a role. I argue that such competitive situations can be particularly erosive to moral relations because they pit subjects against each other. The question is whether it is possible to find effective antidotes to this erosion of moral motives. Kuch’s analysis of authoritarianism suggests that people in capitalism learn that the right of the strongest is a legitimate principle of action, and that the normalization of such principles in dealing with weaker groups plays an essential role in explaining the new authoritarianism. This is plausible. In particular, I believe that a neoliberal version of the meritocratic idea underlies this development. Subjects see themselves as winners or losers in constant status competitions, and if they are on the losing side, they compensate for the impending loss of status by oppressing weaker groups. The question is whether a less radical reaction of this kind could also threaten market socialism, because it shows subjects even more transparently than capitalism how much value their own social contribution has. Can market socialism counteract such a development? (shrink)

European competition law is predominantly focused on maximizing consumer welfare. This overarching purpose (which is supported by economic theory) leaves little place for safeguarding non-economic values, such as sustainability. This makes it difficult to allow cooperation between companies to contribute to such non-economic goals. In this article we explore whether it is possible to establish a different normative framework, in which such goals can be taken into account and can be balanced against the economic goal (...) of consumer welfare. To answer this question, we take four steps. First, we discuss current EU competition law and the difficulty of fitting non-economic goals into the dominant interpretation of that law. Second, we propose a different normative framework, based on the capability approach advanced by philosopher Martha Nussbaum and economist Amartya Sen. Third, we argue that there are good principled reasons to incorporate non-economic goals into competition law. Fourth, we apply both the capability approach and the consumer welfare approach to three (illustrative) cases in which non-economic goals are at stake. Overall, we argue that the capability framework, although not without difficulties of its own, may provide a more legitimate theory for the interpretation of European competition law. (shrink)

Every price is set by someone; this is where economics begins. Building on that fundamental idea and on Ayn Rand's philosophy of Objectivism, Objective Economics transforms economics. The thesis of this book is that Ayn Rand's concept of "objective" is the indispensible base of valid economic thought. Consistently applying this idea across the board, the author reaches a general theory of price for the first time in the history of economic thought. This theory of price then provides a (...) valid base for explaining how a free economy functions. Based on facts everyone knows, presented without graphs or higher mathematics, Objective Economics makes accessible to the intelligent layman a clear understanding of how the economy works. For everyone who found college economics impenetrable--and that is just about everyone--this is the book.The thesis of Objective Economics changes everything about economics, including economics' method, the conception of the economy, the meaning of competition, the idea of price, the nature of business costs, the concept of supply, the concept of demand, the law of supply and demand, the theory of price, and the theory of total national output. Overall, as the result of all the preceding, Objective Economics demonstrates that capitalism is the practical economic system. (shrink)

This paper provides an empirical case study of the relationship between corporate social responsibility (CSR) and the new competition regulation in the Netherlands. The leading question in this case study is whether the new institutional arrangement has allowed for the possibility that reasonable exceptions can be made to the principle that inter-firm cooperation is prohibited. That is to say: does the new institutional arrangement allow for the possibility of 'well organized but not 'perfect' markets'? The investigation focuses on the (...) Netherlands, which constitutes an exemplary case as the Dutch are committed to both strengthen the competitiveness of the market and allow for exceptions on behalf of non-economic values such as CSR. The authors expect that the Dutch context will prevent a doctrinal and categorical rejecting of any good argument to make an exception to the rule that inter-firm cooperation must be prohibited. (shrink)

How much inequality does market interaction generate? The answer to this question partly depends on the level of competition among economic agents. Yet, in their normative analysis of the market, theories of distributive justice focus on individual characteristics such as talents as determinants of income, and tend to ignore structural features such as competition. Economists, on the other hand, dispose of the conceptual tools to assess the distributive impact of competition, but their analysis is usually limited (...) to allocative efficiency. Part I of the article distinguishes my argument from conventional perspectives on income inequality and redistribution. Whereas the latter propose either to redistribute income once the market interaction has taken place or to adjust the initial holdings of market participants, I focus on the distributive impact of the institutional structure of the market itself. Part II outlines the ways in which various forms of competition affect distribution. My objective here is descriptive in nature, but shows that a normative evaluation of the market has to take seriously the distributive impact of competition. This impact can be broken down into the analysis of three overlapping groups of economic agents, namely consumers, workers, and capital owners. Consumers potentially gain from competition in the form of lower prices, but these gains are only realized if competition does not put pressure on their work income at the same time. Unless competition squeezes profits unusually hard, capital owners tend to benefit from competition. (shrink)

Rich people stash away trillions of dollars in tax havens like Switzerland, the Cayman Islands, or Singapore. Multinational corporations shift their profits to low-tax jurisdictions like Ireland or Panama to avoid paying tax. Recent stories in the media about Apple, Google, Starbucks, and Fiat are just the tip of the iceberg. There is hardly any multinational today that respects not just the letter but also the spirit of tax laws. All this becomes possible due to tax competition, with countries (...) strategically designing fiscal policy to attract capital from abroad. The loopholes in national tax regimes that tax competition generates and exploits draw into question political economic life as we presently know it. They undermine the fiscal autonomy of political communities and contribute to rising inequalities in income and wealth. Building on a careful analysis of the ethical challenges raised by a world of tax competition, this book puts forward a normative and institutional framework to regulate the practice. In short, individuals and corporations should pay tax in the jurisdictions of which they are members, where this membership can come in degrees. Moreover, the strategic tax setting of states should be limited in important ways. An International Tax Organisation should be created to enforce the principles of tax justice. The author defends this call for reform against two important objections. First, Dietsch refutes the suggestion that regulating tax competition is inefficient. Second, he argues that regulation of this sort, rather than representing a constraint on national sovereignty, in fact turns out to be a requirement of sovereignty in a global economy. The book closes with a series of reflections on the obligations that the beneficiaries of tax competition have towards the losers both prior to any institutional reform as well as in its aftermath. (shrink)

The aim of this paper is twofold: to review briefly the main policy implications of Kirzner’s work and to contrast these with the approach that is generally used in public policy. The following issues are discussed in the paper: taxation and entrepreneurial incentives; the effects of regulation on the entrepreneurial process and economic growth; monopoly and monopoly pricing; anti-trust laws and their impact on the market process; the coordination criterion of efficiency; and the notion of economic justice. I (...) argue that the standard criteria of efficiency are often not useful to policy-making and should be replaced by Kirzner’s “coordination criterion”, which states that the institutions of the market economy must be geared toward allowing the capture of profit in order to promote the speed and responsiveness of the market process. One of the main lessons of Kirzner’s work for policy making is that the market process is always competitive and takes place over time.Cet article a deux objectifs : a) passer brièvement en revue les principales implications politiques des contributions de Kirzner et b) distinguer ces implications kirzneriennes de l’approche généralement retenue dans l’élaboration des politiques publiques. Dans ce qui suit, nous discutons des questions suivantes : les impôts et les incitations entrepreneuriales ; les effets de la réglementation sur le processus entrepreneurial et la croissance économique ; les monopoles et leurs modes de fixation des prix ; les lois anti-monopole et leurs conséquences sur le processus marchand ; l’efficience en tant que critère de coordination ; et la notion de justice économique. Le papier soutient que le critère standard d’efficience est rarement utile au niveau politique et devrait être remplacé par le “critère de coordination” de Kirzner qui énonce que les institutions de marché doivent avoir comme point de repère la réalisation de profits de manière à promouvoir la vitesse de capacité d’ajustement du processus marchand. Une des principales leçons des contributions kirzneriennes pour les décisions politiques est que le processus marchand est toujours concurrentiel et s’inscrit dans le temps. (shrink)

This paper provides an empirical case study of the relationship between corporate social responsibility (CSR) and the new competition regulation in the Netherlands. The leading question in this case study is whether the new institutional arrangement has allowed for the possibility that reasonable exceptions can be made to the principle that inter-firm cooperation is prohibited. That is to say: does the new institutional arrangement allow for the possibility of `well organized but not `perfect’ markets’? The investigation focuses on the (...) Netherlands, which constitutes an exemplary case as the Dutch are committed to both strengthen the competitiveness of the market and allow for exceptions on behalf of non-economic values such as CSR. The authors expect that the Dutch context will prevent a doctrinal and categorical rejecting of any good argument to make an exception to the rule that inter-firm cooperation must be prohibited. (shrink)

This volume contains eleven papers – some theoretical, others empirical – given at the 1986 founding meeting of the International Joseph A. Schumpeter Society in Augsburg. By raising questions and offering additional statistical evidence, they further stimulate interest and discussion about the kinds of intuitive ideas that Schumpeter introduced in his seminal period before World War I. Whatever may be the academic mainline trend in economics, two policy-oriented 'disequilibrium' schools have flourished and still thrive: one stresses the need for social (...) redistribution as a counterweight to a negative propensity to unemployment; the other emphasizes the explicit roles of the dynamic entrepreneur, innovation and stressful competition in stimulating economic growth. And while it is possible that the heyday of the demand-side 'age of Keynes' is passing, it also may be true that the time of the supply-side 'age of Schumpeter' is now emerging. (shrink)

This paper addresses Joseph Heath’s attempt to derive moral obligations from the conditions that are specified by the model of the perfectly competitive market. Through his market failures approach to business ethics he argues that firms should behave as if they are operating in a perfectly competitive market. However, I argue that this derivation of moral obligations runs counter to the metaethical principle that moral actions need to be voluntarily chosen from a set of alternatives. To the extent that Milton (...) Friedman’s derivation follows the same lines, my objection is also applicable to his approach to business ethics. I bring out the fact that the conditions required by the model of the perfectly competitive market cannot be realized in the actual world and argue that this causes problems for any moral obligations that might follow. My objection is illustrated by an intuitive example of someone set to an impossible task. I also bring in a way that Heath could work around this objection, but I argue that this would imply the collapse of his approach into another kind of theory that he wishes to distinguish himself from. More deeply, I show that my metaethical objection has epistemological consequences that undermine the very basis of the model of the perfectly competitive market. I conclude by stating that we need a different conception of competition, pointing to the facts that such a perspective would need to take into account, and suggesting that the concept of rivalry is up to the job. (shrink)

In this book, Frederic L. Pryor uses the concept of structural complexity to show how changes in the population, the labour force, the structure of industry, the financial system, foreign and domestic trade, and the government sector are related to the same general trend in the US economic system. He also investigates the impact of these changes on the functioning of the system, exploring such matters as the long-term rising unemployment rate, the allegedly increasing volatility of the economy, the (...) changing degree of competition, and the evolving economic role of the government. The discussion is aimed at those who wish to view the economy as a whole and who are concerned with problems of understanding an economy that is becoming increasingly complex along many different dimensions. For specialists a number of appendices discuss a variety of technical issues. (shrink)

“Competition” is a concept which many ethicists cast a skeptical eye on. Often, it is associated with the erosion of values and morality under competitive pressure, with “marketization” or with commercialization. I will shed a differentiated light on this concept, both from an economic, an ethical and an intercultural point of view. Competition, after all, can be instrumental for ethical goals.

This chapter provides an overview of the key European Union (EU) competition law provisions, focusing on their impact on the global economy and how this impact is managed. It considers the main transnational themes that arise. The first is the age‐old question of the extent to which national law applies across its borders. The second is the question of externalities, which has two ramifications. The first is an economic one, whereby the concern is that the enforcement of (...) class='Hi'>competition law in one jurisdiction may have negative repercussions in others, reducing global welfare. The second branch is political in character and arises when the enforcement of competition law in one jurisdiction harms the economic interests of firms abroad. A third theme is collaboration among agencies in the context of global anticompetitive conduct. A fourth theme is hypocrisy. The chapter also sketches how competition policy became the European Union's first supranational policy. (shrink)