Okayama Economic Review
Published by the Economic Association of Okayama University


Takemura, Shosuke
Many economists have not disputed aggressively ‘competition’ itself. However a few experts have had their own visions of ‘competition and rivalry’. We can understand it best when we catch the seller’s completion and rivalry or firm’s ones as the Hayekian economic process. I explain one continuous and straight numerical value line stretching from the left hand end pole to the right hand end pole. People will have adopted the flexible type as the best in the competitive capitalism the seller had kept in mind. In the ‘process of competition and rivalry’allocated in reverse order there are four requirements and five nodes. Though the firm has larger or smaller power of pricing formation, his budget constraint is apt to be relatively soft or to be relatively hard. The cost−plus principle prevails as a universal experienced rule. Does our process of competition and rivalry converge to the type of the flexible price formation again? In the dynamic process of competition and rivalry the combined values, namely, c, g, m and s give vital effects to the firm’s technical innovation and his efficiency sooner or later. The government’s public policies including deregulation can control the producer’s surplus especially in that process observing the firm’s values. We must think over the visible effects of competition and rivalry before we reap them.