Premium
THE FISCAL CHALLENGE OF COMPETITIVE MARKETS
Author(s) -
Harrison Fred
Publication year - 2005
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/j.1468-0270.2005.00534.x
Subject(s) - competition (biology) , government (linguistics) , marginal cost , value (mathematics) , economics , industrial organization , microeconomics , cover (algebra) , marginal value , business , market economy , engineering , philosophy , linguistics , machine learning , computer science , biology , mechanical engineering , ecology
Competition maximises consumer satisfaction but creates a financial problem for enterprises. When prices are competed down to just cover marginal costs, part of the value added by the enterprise is externalised. Government has not been efficient at recycling that value back into the economy, which is why infrastructure is severely underfunded.