Quote Of The Day

This comes from F. A. Hayek in Individualism and Economic Order:

Especially remarkable […] is the explicit and complete exclusion from the theory of perfect competition of all personal relationships existing between the parties. In actual life the fact that our inadequate knowledge of the available commodities or services is made up for by our experience with the persons or firms supplying them– that competition is in large measure competition for reputation or good will– is one of the most important facts which enables us to solve our daily problems. The function of competition here is to teach us who will serve us well: which grocer or travel agency, which department store or hotel, which doctor or solicitor, we can expect to provide the most satisfactory solution for whatever particular personal problem we may have to face. Evidently in all these fields competition may be very intense, just because the services of the different persons or firms will never be exactly alike, and it will be owing to this competition that we are in a position to be served as well as we are.

 

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