The Importance Of Competition

Published: October 17, 2016

Industries without much competition are marked by high prices, low customer service, and a lack of innovation. But when competition thrives in a market, consumers get better goods and services at lower prices. Existing producers in the market don’t like competition, but it’s good for consumers. Some businesses will succeed and others will fail. But as long as it is easy for new competitors to enter the market, prices will stay low and innovation will continue.

Discussion Question

  1. What are other industries that are overdue for a competitive shake up? Are there any non-profit industries that qualify?

Cast

John H. Cochrane

John H. Cochrane

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