Ever since I can remember, free market theorists have been advocating ‘pure and perfect competition’ (PPC). This ideal state, that is, PPC hinges on the over-simplifying assumption of a large number of buyers and sellers (incapable of distorting prices individually), any number of firms entering/exiting the market without any imposed restrictions or transaction costs and every market participant knowing everything at all times. The end objective, of course, is to provide goods and services to maximum number of people at minimum cost. While this is the best outcome for consumer markets, it would kill the ‘animal spirits’ in the producer markets, thereby curtailing supply and pushing up prices for consumers, thereby destroying the very crux of PPC.
My Best Pick 2015
Where are you, George?
Asset values are way out of whack but nobody is stepping forward to point out that the emperor has no clothes
Summer wine and salad
Kishore Singh - January 19, 2015
The million-dollar question: Is investing a game of luck or skill?
Shankar Sharma - May 04, 2021
Every crisis is an opportunity, if you are on the right side of equities
Samir Arora - May 04, 2021
Viraj Mehta trusts the toughness and bounce of a company that has seen many trials
Viraj Mehta - May 04, 2021
Safir Anand spots a mid-sized company with the right chemistry and catalytic circumstances
Safir Anand - May 07, 2021