Healthy Economic Competition as Basis for Better Living Standard ()
1. Introduction
After the Сovid-19 pandemic, it is clear to the public that economic crises in the world have worsened (even in developed countries) and, despite the efforts of international organizations, political conflicts of a global nature have worsened. Therefore, we believe that conducting a study of a purely general theoretical nature is critically important. The basis of the general theoretical understanding of the economy is undoubtedly the problem of perfect competition and, in my opinion, healthy competition should be understood as being as close as possible to perfect. Therefore, we also drew attention to the interest of scientists in the problem of improving economic relations to improve multiple pressing issues of the highest quality living conditions (Gift et al., 2022; Komlos & Baten, 1998; Dora et al., 2024; Gowri et al., 2024; Leggio & Colombo, 2024; Cojocaru et al., 2014; Eather et al., 2023; Malm et al. 2019; Hoffer, 1929).
2. What Kind of Economic Competition Can Be Considered Healthy?
For some reason, economic competition was considered perfect if the number of competitors approached infinity, but we believe that this is not so. The race for many competitors will inevitably lead to overproduction, environmental pollution, depression and stagnation, degradation of the individual, and ultimately to an unhealthy lifestyle—high rates of alcoholism and drug addiction, a decrease in the indicators of mass sports.
To strengthen statistical validity, we specially created statistical forms and questionnaires, which were sent directly to the business entity and to determine certain factors of influence, minor factors of influence were gradually excluded by the elimination method (Elimination Method, 2025). Calculations showed that regions that are rich in natural resources sometimes lose almost half of their potential due to the bad habits of a significant number of the population.
Our calculations, naturally, do not claim absolute accuracy, but the use of the laws of physics, including the atomic balance on the market core between the first and second competitors in terms of control of the market volume, facilitated the calculations, and the recognition of the global encyclopedia (Lordkipanidze, 2024), gave an incentive in urgent need and awareness of the correctness of further theoretical generalizations. The ratio between the first and second largest competitors is, in our opinion, a more rigorous and accurate criterion for assessing competitiveness than the number of competitors.
I value the reader’s time and want to explain as briefly as possible that using the example of the United States of America, we are convinced that fair (healthy) competition between two main political parties gives a much better result than examples of multiple parties under the ruling dictatorships.
Source: From here on for all figure-tables, author calculations by the method of approximate multifactorial elimination.
Figure 1. Efficiency of markets with optimal level by force of competition.
Observations and our prognostic calculations have shown, that markets where the Force of Competition, as determined by new methodology of the understanding of perfect competition (Lordkipanidze, 2024), is within the optimal range will be characterized by the highest efficiency (See Figure 1).
Figure 2. Efficiency of markets with atomic balance in core.
At the same time and by Lordkipanidze methodology, a successful leap in efficiency will be also essential for those markets, where an atomic-like equilibrium is established between the two strongest competitors at the core of the market (Figure 2).
Figure 3. Increasing market efficiency through conservation technologies.
The expected explosive growth in efficiency is driven by breakthroughs in technology that maximize gross performance gains and reduce costs through conservation modes (Figure 3). Our calculations, which are made according to the above-mentioned methodology, are naturally approximate in nature and, under unexpected circumstances, may change significantly, but they are made using multifactorial elimination for predictive extrapolation and, accordingly, are characterized by high reliability and reflect a real perspective.
3. Recommendations for Conclusion
Naturally, the author’s position cannot claim absolute legitimacy, but the presented research provides a recommendation for the implementation of economic policy that will protect healthy competition (almost perfect competition), especially in the core of the market, and stimulate the improvement of qualifications with the most economical instruments possible.
Figure 4. Markets by efficiency of educational level in management.
The educational level in the management team will play an increasingly significant influence on the competitiveness and efficiency of markets. If earlier some believed that qualifications are not necessary for success in business, now the situation is changing radically (Figure 4). It is clear that an educated society is less burdened with bad habits and is more involved in sports and, as a rule, lives longer and better in high-quality conditions.
Figure 5. Markets by use of artificial intelligence in active part of fixed capital.
A clear pattern emerged in the dependence of the use of Artificial Intelligence in the active part of the fixed capital of competing companies (Figure 5) on the effectiveness of competition in the market, but this does not mean that Artificial Intelligence can replace and defeat a person everywhere.
Acknowledgements
As always, the author is especially grateful to the stuff of Journal “Theoretical Economics Letters” and scientists of Harvard University, the American Economic Association, University Geomedi, Tbilisi State University and Georgian Technical University for highest professionalism and warm relations.