Publisher's Synopsis
Some economists believe that the prediction of the standard model of monopolistic competition differ only in unimportant respects from the of the theory of competition. This is a question of fact, and it must resolved by tests of implications of the two choices.The fact that supporters of the theory of monopolistic competition had not made tests comparing the predictions of the alternative theories of competition. IN nowadays, living economic environment, if choosing theories in accordance with economist's criteria is to be treated as a positive theory, economists would need to adopt a procedure somewhat similar to the following. When a new advanced, economists would compare the accuracy of its predictions, preferable about phenomena not yet observed, with that of the existing theory and would choose that theory which gave the best predictions. I feel that living economic environment can cause monopolistic competition is not popular to compare other kinds of competitions. For e-commerce is one god example, e-commerce does not encourage monopolistic competition, because it allows different kinds of service or product sale businesses apply internet and website high technological intangible tools to help them to sell their products from tangible computers. SO, any service industries, such as airlines can apply websites to let passengers to pre paid visa to buy electronic air tickets, or hotels can apply websites to let travelers to pre-book hotel rooms and choice the day check in and day check out, when they arrives the country, they can live the hotel room absolutely. Any product sale industries, such as book publishers can let readers to pay visa to buy their electronic books to read from their websites or pay visa card to buy the paper book and it will be delivered to their overseas or local homes by air plane or lorry in the short time rapidly. Hence, internet invention can encourage many competitors enter to the e-commerce sale market. In e-commerce market, it must not have monopolistic competition existing to any kinds of service providers or product sellers. It is one platform to let they have fair competition. None any countries can threaten other countries competitors when they choose to apply internet and website intangible high technological tools to replace any shops to sell their products or provide services from internet. So, living economic environment create new technological sale platform and it also avoid more monopolistic competition creates in our future unpredictable changing business market. Even, it is possible that businessmen will have another one kind of new technological sale platform to replace website to help any countries' businessmen to sell their products or provide their services more easily. Consequently, monopolistic competition will be encouraged to reduce when another kind of new technological sale method is invented in future one day.