Competition: its types, location and role in modern economic mechanism

Competition is a kind of engine of a market economic system, a market economy as a whole. This economic incentive forces all market counterparties to take new actions and efforts. The result is the creation of more profitable combinations of cooperation. Adam Smith described the competition at one time. He gave to it a very original and memorable name — «the invisible hand of the market». In addition, competition is an integral part of the economic mechanism that determines modern social production and the processes of reproduction in modern national economies. It is impossible to replace or replace competition by government regulation of the economy in any way, as shown by the recent historical experience of Soviet economic practice. Today, all countries combine concurrence with state regulation of economic life, to one degree or another, demonstrating to the world the advantages of a so-called mixed economy. Economists, as a rule, speak of two main models of a mixed economy. First, it is the neoclassical liberal economic model. Secondly, it is a socially oriented economic model. Therefore, even on how strongly competition is present in the economy, the very model of its functioning depends. Moreover, what will happen next – only time will tell.