Competition and X-Efficiency: Reply

摘要: One of the achievements microtheory is demonstration that, within sense in which efficiency used, competitive markets are more efficient than monopolies. But as a consequence gradual refinement economic theory' concept has been narrowed to single meaning, that is, allocative and nothing more. Within strict confines theory, "nonallocative" an unnecessary concept. economists cannot avoid questions outside formal microtheory. Are monopolies truly inefficient compared industries apart from efficiency? For those interested organization it important assess all gains losses economy if market under monopolistic control rather operating conditions. our antitrust laws aimed at achieving results only or something more? these areas there misunderstanding between lawyers (or other experts) economist thinks terms while untutored expert attributes wider set characteristics meanings? These issues arise number disguises practical contexts, include part centralized versus decentralized planning, variety socialist forms organization, debate capitalist organization.2 Schwartzman (1973), argues neither logical reasons nor evidence show monopoly less X-efficient (to use my language) competition. He believes be open question. In general I agree with him far textbook concerned. also some points he makes. However, disagree his conclusion really question view informal arguments narrow framework (see Schwartzman's quotations texts) viewpoint specific theory