Analysis Framework Of Generalized Competition

In the whole history of Economics, we can see "Competition" in every school. The generally accepted idea shows great favor towards competition as considering it able to promote economic efficiency and development. Yet the dominant economic thoughts cannot provide reasonable foundation and even profound description of the nature of capitalist competition is still lacked. The neo-classical economics extends its influence to macroeconomics through the assumption of rational expectation. Though competition plays an important role in neo-classical system, we can tell that real competition has been eliminated actually. In other major thoughts, the connotations of competition are not always obvious. In this article, I shall choose three representative schools as sample, from which I try to peel out the nature of competition and proper method of analysis. This article will describe the nature, meaning and relative influences of capitalist competition principally and critically.After a rough analysis we will see that the individualistic method will be of no doubt the proper method to accomplish this mission, on the ground of liberty and democracy. In this way, we can say that whatever the aspect we are looking into, the relationships among individuals, between individuals and organizations and among individuals, organizations and society can always be attributed to the changes of individual knowledge system. What is also important is that the development and evolution can only be reasonably explained this way. All kinds of competition start from and are based on individual competition. In this article, competition is more than purely behavioral conflicts. In a more general scope, I shall borrow some sociological method to make the framework valid. In this approach, general competition can only be based on time and uncertainty, from which a phenomenon description is allowed to show the real picture of economic reality.We must notice that competition cannot always play as an invisible hand. The affecting course of competition and the relative reality determine a non-smooth path for the society evolution. There is an important assumption that this article is based on, which is that the economic world cannot possibly be divided from the rest of the society. If we want to know about the real state of economic world and get some nearly-real prediction (there is no possibility of accurate description and prediction), the analysis must stand on a dynamic base of the whole social history. This article is not about giving advice for economic changes but an outline framework that is coherent from micro behavior to institutional evolution, which is the most important meaning of it.