Competition & non-competitiveness: Two sides of the same coin

TERRA ECONOMICUS, , Vol. 12 (no. 2),
p. 34-41

The article represents an extensive commentary on the paper by R.T. Ely «Competition: its Nature, its Permanency, and its Beneficence» which reflects debate in European and American scientific community in the beginning of XX century. The point of view is offered which allows both sides of ideological conflict – proponents and opponents of competitive ideology, – to treat competitive behavior in non-contradictory way of thinking. Taking into consideration the achievements of XX century social psychology and sociology, the concept of non-competitiveness as a feature of psychologically rational economic behavior is introduced. The influence of interpersonal competition’s increase on agreements’ violations is shown as a factor decreasing their efficiency; therefore, only competition within the institutional framing to be perceived as favorable. The efficiency of market competitive mechanism as the factor reducing transaction costs of adaptation is argued.

Keywords: competition; non-competitiveness; adaptation; economic behavior; institutions

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