Beyond the invisible hand: a case for moderate competition

Suggests that too much market competition, like too little, hurts the US economy. Argues the case for moderate competition, where the operation of the invisible hand of free market competition is limited not only by the concern of the socio‐economic costs of competition, but also by the fact that it is likely to yield better economic performance. Identifies several competition indicators and relates these to economic performance indicators to see whether the degree of competition has a bearing on US economic performance. Concludes that the lacklustre performance of the US economy during 1980‐1991, as compared to the 1960‐1971 period, is likely to be due to too much competition. Proposes several principles of a blueprint for moderate competition.