Great post at the Adam Smith Blog by Alex Singleton who explains why he isPro Logo:
One of the most unhelpful theories taught in basic economics courses is the notion of perfect competition, which has been captured by anti-capitalists to attack capitalism. They argue that brands are anti-market because they prevent perfect competition, a state where products are identical and where companies can only make 'normal' profits. However, there is no such thing really as perfect competition, nor would it be desirable. And profits are never "normal". In markets, different firms compete not only on price, but also on image and quality. In the car industry, the cars from Peugeot, Ford and Jaguar compete, but the products are not homogeneous. Consumers are made better off by this lack of sameness: manufacturers add new features and better designs in an attempt to lure custom, leading to ever improving products. In short, the perfect competition model is wrong because it oversimplifies how the market works.
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