Help! Need some info/input/resources about 'competition'

[JewelDigger]

I'm in the process of a debate with someone about the 'nature of competition'. Specifically, the idea that genuine competition (between two companies) actually makes both companies better and, ultimately, serves the customer/consumer/public best.

My friend thinks that the only way to deal with competition is to get big enough to 'buy them out' and eliminate (or absorb) the competition. Which has been happening lately (since the 70's, 80's?) with all of the mergers and company buy-outs.

As I recall (I was pretty young then), a lot of people were upset about the mergers and buy-outs - that it would ultimately be a bad thing for the consumer. People under 30 don't remember a time when companies actually would COMPETE with each other, not aim to buy the other guy out. Now, some view that as the only way to do things.

Any thoughts/comments would be appreciated.

Two things:

1) I'm heading to work now, so won't be able to check on responses (if any) till tonite

2) Sorry this is not a very well thought-out 'question' - I'm in a hurry (but I really would appreciate some input from the folks at DU)