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Rational and irrational competition

American Shipper Magazine

Thursday, September 27, 2012

Recent actions by central banks around the world indicate the near-term global economic outlook is improving, but even assuming that the United States delays the “fiscal cliff, ” it is difficult to expect high growth and therefore the intensity of competition that such an environment spawns will decrease. Although competition is the key reason market-based economies are efficient at allocating resources, financial and public sector actions can impact the outcome in ways that a...

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