Dissatisfaction with the ability of the model of perfect competition to act as an ideal market structure for policy purposes led to various attempts to replace it with the operationally more valid concept of workable competition. This phrase originated with J. M. Clark1 who argued that perfect competition ‘does not and cannot exist, and has presumably never existed’. He therefore set out to develop alternative criteria to those of perfect competition for use in assessing how well competition is working.
Notes and References
- 1.J. M. Clark, American Economic Review (June 1940). See also the American Economic Review (May 1955) and Competition as a Dynamic Process. Google Scholar