The Concept of Countervailing Power: An Appraisal
Abstract
The Problem. The problem confronting the contemporary economist is the ancient problem of mitigation or regulation of economic power. Traditionally two solutions have been offered to solve the problem. One is competition. Its alternate, assuming that anarchy and exploitation are not solutions, is state regulation. The role of competition in the market is that of a regulator, making the behavior of any of the participants in the market contingent on the behavior of other and like participants. In other words, competition makes "sellers subject to the independent action of other sellers and buyers subject to the independent action of other buyers" The alleged effect produced by competition is the limitation or dissolution of market power, which, when effectively used, would limit or lower the real income of others.
Subject Area
Political science
Recommended Citation
Lehr, Edward M, "The Concept of Countervailing Power: An Appraisal" (1958). ETD Collection for Fordham University. AAI28673302.
https://research.library.fordham.edu/dissertations/AAI28673302
