Enforced Competition in the Accounting Profession--Does it Make Sense?

Abstract Political economists in the United States have historically advocated competitive markets for the nation's industries. A highly competitive market has been regarded as the cornerstone of the free enterprise system. Competition has almost had the same favorable political connotation as "free market" or "laissez-faire." The perceived benefits of increased competition have been that firms will operate at the lowest point on their long-run average cost curve and the public will be charged the lowest prices for goods and services. No supplier of goods and services will make excessive profits, and all goods and services will be available in optimal quantities. To encourage competition, both the Justice Department and the Federal Trade Commission have been increasingly active in breaking up monopolies, preventing certain business combinations, and taking other similar actions. Recently, increased competition has been forced on professions as well as businesses. One by one, medicine, dentistry, law, and accounting have come under pressure to become more competitive.