Was Stigler a proponent of perfect competition?
Not at all
He had mixed views
Yes, as an ideal
Yes, he advocated for it
Answer
Stigler endorsed Theory of perfect competition. He argued that it is the ideal market structure because it maximizes economic efficiency and promotes consumer welfare. Perfect competition occurs when there are many buyers and sellers in a market, with each having a negligible market share. This leads to a competitive equilibrium where price equals marginal cost, and there are no barriers to entry or exit in the industry.
Mastering the Market: The George Stigler Challenge
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