2-Bit Thoughts

   Pure Competition - a market characterized by a large number of independent sellers of standardized products, free flow of information, and free entry and exit. The sellers are "price takers" rather than "price makers".
   Is that ideal reached in any US markets? Is that what we really want to aspire to?
Over-Capacity not Scarcity is often a problem
    What is wrong with the airline industry? the automotive industry? The number of participating companies can provide more than is requested - and unfortunately, the price they can ask is less than what they need for their costs.
   That situation can give rise to the socialistic urge to direct production so that over-capacity doesn't occur. That hasn't worked.
Pricing Not Tied to Creation Costs
   We pay entirely too much to CEOs, athletes, movie stars, money managers and the like. It hoards the fruits of labor with too few. I believe we should never pay the top person in an organization more than ten times that of the lowest fulltime worker.
   
   

Making Money in Pure Competition
   I use to wonder how pure competition could theoretically be held as an organizing goal for a society's economy. What bothered me was that it seemed that when it worked perfectly, no company would make any money.
   Recently I realized that, at a market equilibrium, companies could still be making money, because new potential entrants would choose the market with the most money-making opportunities and that wouldn't be a stale industry at saturation. The newest entrants to the economy would go to new niches.