The Effectiveness and Legitimacy of "Anti-Overcompetition" Measures

Crack down on “involution” with the goal of easing companies’ dilemma of higher revenues but not higher profits, improving the reality of deflation, safeguarding workers’ right to rest, and boosting confidence in both businesses and workers. However, when it comes to how to “set clear red lines for fair competition,” it requires a high degree of prudence—just as Hayek warned in The Fatal Conceit: when human beings try to use limited reason to build a “good society,” it often turns out disastrously the opposite of what they intended.

Involution and competition: a game of the finite and the infinite

Competition (Competition) is a kind of “infinite game” that keeps the game going. Its essence is that entrepreneurs, based on their vigilance toward the market, continuously discover unmet market demands through price, technological, or organizational innovation—thereby creating value for users through the more optimal allocation of resources. In this process, falling prices are an inevitable result of technological progress and efficiency gains, and everyone benefits.

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