COMPETITION AND RATIONALITY
Competition is essential for utilizing and developing our knowledge and skills. It compels individuals to act rationally to succeed, not because all market participants start off as rational, but because competition pushes some individuals to adopt rational behaviors that others will then follow. In a society where being rational is beneficial, rational methods will be spread through imitation. Competition can foster certain mindsets, particularly among entrepreneurs, as it creates an environment where new ideas are tested. If traditional beliefs dominate and restrict experimentation, competition suffers, limiting intellectual growth. The majority's power should focus on ensuring fairness rather than enforcing how things should be done. When competition exists, a small group can influence a larger one to adopt new, more effective practices. However, if a society lacks the spirit of enterprise and the majority can ban what it dislikes, competition is unlikely to thrive. Generally, competition's negative aspects are more obvious to those involved, while its benefits, like better prices and quality for consumers, are less recognized.
Competition is essential for utilizing and developing our knowledge and skills. It compels individuals to act rationally to succeed, not because all market participants start off as rational, but because competition pushes some individuals to adopt rational behaviors that others will then follow. In a society where being rational is beneficial, rational methods will be spread through imitation. Competition can foster certain mindsets, particularly among entrepreneurs, as it creates an environment where new ideas are tested. If traditional beliefs dominate and restrict experimentation, competition suffers, limiting intellectual growth. The majority's power should focus on ensuring fairness rather than enforcing how things should be done. When competition exists, a small group can influence a larger one to adopt new, more effective practices. However, if a society lacks the spirit of enterprise and the majority can ban what it dislikes, competition is unlikely to thrive. Generally, competition's negative aspects are more obvious to those involved, while its benefits, like better prices and quality for consumers, are less recognized.