3. As Adam Smith recognized long ago, competition (in the sense of rivalry) can tum the self-interest of individuals into a powerful force for economic progress. In a market economy, the competitive process is vital to the efficient allocation of resources. If we familiarize ourselves with alternative industrial structures, we will have a framework within which to analyze the significance of competition within industries. It is important to recognize that strong competitive pressures (in the sense of rivalry) may exist outside the purely competitive model.