USAS’ Declining Competing Ability In 20th, Century USA suffered a lot of Competition in trade, Productivity and repeat economic recessions. Proponents of industrial policy urged for protection, till the regaining of strength to compete the new challenges in lower labor rates, economies of scale and other such factors.

Customers are our enemies and competitors are our friends. An unofficial motto of a big American company fined U.S $100 million as caused a loss of over I billion to customers by price discrimination.

American Laws & Pricing major laws in the United States that define illegal behaviors – Sherman, Clayton, and Robinson-Patman & Sarbanes-Oxley act.

Economist Ray Marshall Marshall insisted on private public partnership, to strengthen the local market forces. Opponents of this policy strongly recommended that Government should not intervene, competition will give rise to new strong and resistant industries.

Competition and the market. Given that our system generally follows the free market model, which is based on competition. It may be surprising to note that there are so many examples of anticompetitive practices in the U.S. today.

Marketing Mal-Practices A survey of major corporate executives indicated that 60 percent of those sampled believed that many businesses engage in price fixing. A report on the New York Stock Exchange companies showed that 10 percent of the companies had been involved in anti-trust suits during the previous five years. A survey of major corporate executives indicated that 60 percent of those sampled believed that many businesses engage in price fixing

The morality of the free market system itself is based on the idea of competition creating a just allocation of resources and maximizing the utility of society's members. To the extent that the market is not competitive, it loses its moral justification for existing.

One study found that in a period of two years alone, over sixty major firms were prosecuted by federal agencies for anti-competitive practices. Actually, it is more than surprising. The morality of the free market system itself is based on the idea of competition creating a just allocation of resources and maximizing the utility of society's members.

To understand the nature of market competition and the ethics of anti-competitive practices, it is helpful to examine three abstract models of the different degrees of competition in a market: Perfect competition Pure monopoly Oligopoly

Perfect Competition In a perfectly free competitive market, no buyer or seller has the power to significantly affect the price of a good. Seven features characterize such markets: There are numerous buyers and sellers, none of whom has a substantial share of the market. All buyers and sellers can freely and immediately enter or leave the market.

Every buyer and seller has full and perfect knowledge of what every other buyer and seller is doing, including knowledge of the prices, quantities, and quality of all goods being bought and sold. The goods being sold in the market are so similar to each other that no one cares from whom each buys or sells.

The costs and benefits of producing or using the goods being exchanged are borne entirely by those buying or selling the goods and not by any other external parties. All buyers and sellers are utility maximizers: Each tries to get as much as possible for as little as possible.