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This article in the Economist magazine (Links to an external site.)Links to an external site. suggests, based on significant evidence, that competition in American markets is not only constrained, but is becoming less so, as fewer companies dominate business.
In another article, published by the IMD World Competitiveness Center (Links to an external site.)Links to an external site., the US is shown as being third in global economic competitiveness, after Hong Kong and Switzerland.
These two publications are using the word “competition” in different ways — please describe how it is being used in each case.
Our model of Supply & Demand is based on a model of perfectly competitive markets. If our markets are not competitive, how does that affect this model?
Two article links are below this sentence.
https://www.economist.com/news/briefing/21695385-profits-are-too-high-america-needs-giant-dose-competition-too-much-good-thing
http://www.imd.org/news/updates/the-usa-toppled-as-worlds-most-competitive-economy/
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