The Evidence on Government Competition

  title={The Evidence on Government Competition},
  author={Lori L. Taylor},
2 Society clearly benefits when businesses compete. Competition forces firms to innovate and adopt least-cost methods of production. It rewards efficient producers and punishes inefficient ones. As such, competition is a key to economic prosperity in a market economy. The jury is still out on the social benefits of government competition, however. On one side of the debate are economists who argue that competition encourages governments to allocate resources efficiently and limits the… CONTINUE READING

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