Perfect Competition, Milton Friedman and Economic Reality

A great blog post from UC Berkeley Professor Maximilian:

 http://blogs.berkeley.edu/2016/12/14/milton-friedman-is-dead/

“…the problem is that perfectly competitive markets are about as common as Susan B. Anthony coins. Most markets are in fact not perfectly competitive, which Milton Friedman of course acknowledged. Market failures abound. The key question is whether the costs of intervening in the markets to address the failure outweigh the benefits.”

A few related posts:

http://vivekjayakumar.blogspot.com/2016/09/market-power-and-pricing-power.html

http://vivekjayakumar.blogspot.com/2016/05/less-than-perfect-competition.html

http://vivekjayakumar.blogspot.com/2016/11/business-consolidation-and-income.html