Carl Menger and the Theory of Competition.

The prominent position of Carl Menger in the history of economics is mainly seen in his contribution in the subjective theory of value. In this article Menger's analysis of competition is examined and it is suggested that he understood competition as a dynamic process. All elements of the modern process-oriented analysis of competition along evolutionary lines are contained in his work: the emphasis of the process and not of the end-state to which competition might lead, the variety of action parameters, the creation and diffusion of knowledge, the role of time and finally the growth aspects of the competitive procedure.