The Importance of Competition for the American Economy

The Importance of Competition for the American Economy

By Heather Boushey and Helen Knudsen Healthy market competition is fundamental to a well-functioning U.S. economy. Basic economic theory demonstrates that when firms have to compete for customers, it leads to lower prices, higher quality goods and services, greater variety, and more innovation.[1] Competition is critical not only in product markets, but also in labor…