Empirical evidence shows a positive relationship between market competition and overall economic welfare
Empirical and theoretical economic literature generally supports a positive relationship between market competition and economic welfare, though specific market failures or crisis conditions can sometimes favor coordinated or regulated alternatives.
The retrieved literature contains several strong studies (e.g., Papers 0, 3, and 6) indicating that market competition and deregulation promote economic growth, institutional quality, and overall performance. Meanwhile, Paper 7 points out a counter-example during public health emergencies where centralized cooperation outperforms decentralized competition. On balance, the weight of economic research supports the general positive relationship between competition and welfare, keeping in mind specific contextual exceptions.
Vahagn Jerbashian. The Telecommunications Industry and Economic Growth: How the Market Structure Matters. 2015. https://doi.org/10.2139/SSRN.1784360
Paper 0 establishes that market structure and competition in key industries serve as engines for economic growth and social welfare improvement.
Du L, Fan M, Lin Y. Pricing decisions of converted and expanded enterprises for medical supplies under major public health emergencies.. 2026. https://doi.org/10.3389/fpubh.2026.1831818
Paper 7 finds that in specific emergency contexts, decentralized market competition can lead to inflated prices and reduced allocation efficiency compared to cooperative integration.
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Winfried Koeniger. Employment Protection, Product Market Competition and Growth. 2002. https://doi.org/10.2139/ssrn.327563
Paper 3 demonstrates that product market deregulation and increased competition foster productivity and economic growth.
Malliaros P, Alejandro Pacheco-Jaramillo W. Building Institutional Legitimacy: Elites, Markets, and Inequality Through the Voice-Choice-Transparency-Trust (VCTT) Framework.. 2026. https://doi.org/10.12688/f1000research.174907.2
Paper 6 confirms that competitive markets are associated with higher institutional quality and better socioeconomic outcomes.
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