If you need an accessible version of this item please contact JSTOR User Support

Toward a Concept of Workable Competition

J. M. Clark
The American Economic Review
Vol. 30, No. 2, Part 1 (Jun., 1940), pp. 241-256
Stable URL: http://www.jstor.org/stable/1807048
Page Count: 16
  • Download PDF
  • Cite this Item

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If you need an accessible version of this item please contact JSTOR User Support
Toward a Concept of Workable Competition
Preview not available

Abstract

The paper of which this is an enlarged and revised version was read at a joint Round Table of the American Economic Association and the Econometric Society, during the meetings at Philadelphia, December, 1939. Where one of the conditions of perfect competition is absent, the presence of others may lead to greater rather than less imperfection. Long-run curves of individual demand and cost are flatter than commonly represented, and the imperfections of competition correspondingly less. Industry subject to fluctuating demand requires prices in excess of short-run marginal cost. Favorable conditions appear to include a sloping individual demand curve, and some uncertainty whether a reduction of price will be promptly met. With standardized products, a chaotic market tends toward ruinous competition. Pure oligopoly is seldom found; the important case being that of openly-quoted prices with varying amounts of deviations on actual sales. Standard products with sloping individual demand curves are also possible. While extreme quality differentials approach monopoly, more moderate ones may be workably competitive, especially with further growth of closer substitutes and better knowledge of qualities on the part of buyers.

Page Thumbnails

  • Thumbnail: Page 
[241]
    [241]
  • Thumbnail: Page 
242
    242
  • Thumbnail: Page 
243
    243
  • Thumbnail: Page 
244
    244
  • Thumbnail: Page 
245
    245
  • Thumbnail: Page 
246
    246
  • Thumbnail: Page 
247
    247
  • Thumbnail: Page 
248
    248
  • Thumbnail: Page 
249
    249
  • Thumbnail: Page 
250
    250
  • Thumbnail: Page 
251
    251
  • Thumbnail: Page 
252
    252
  • Thumbnail: Page 
253
    253
  • Thumbnail: Page 
254
    254
  • Thumbnail: Page 
255
    255
  • Thumbnail: Page 
256
    256