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Does the economic principle of competition apply in both private and public...

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cdeeneedham | Valedictorian

Posted September 16, 2012 at 8:00 PM via web

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Does the economic principle of competition apply in both private and public organizations? 

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted September 16, 2012 at 8:09 PM (Answer #1)

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The principle of competition applies to individuals within both private and public organizations.  However, it applies to private organizations much more than to public organizations.

People in public organizations must often compete against one another.  Not all of the planners in a city planning department (a public organization) can become the senior planner or the planning director.  They must compete to get the best jobs.  This, of course, happens to people in private organizations as they compete for promotions.

Private organizations must compete with one another for customers.  Two restaurants in the same town, for example, are in competition with one another.  The same is not true of many public organizations. There are some, like the Post Office, that must compete with private organizations like UPS.  However, there are many other public organizations, like public schools, that typically do not have to compete.

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