Wednesday, November 06, 2002
Says groovy Catalan economist Pedro Schwartz in today's La Vanguardia, "In Spain there reigns a great confusion about what free competetion is, how it works, and what can be expected of it, as I have seen in my years as the President of the Institute of Free Market Studies. In many universities "perfect" competition is defined with so many conditions that it becomes a model that has never existed in reality. There is only perfect competition, it is said, when individuals behave perfectly rationally, when there is an infinite number of buyers and sellers in the market, when these transactors are `perfectly informed, and when the factors of production and the intermediate and final products are perfectly divisible." No wonder most Spanish people just don't get the free-enterprise system if this is what they're teaching their economists and business leaders.