The article compares two ways companies can compete: one by setting prices and the other by deciding how much to produce. When there are many companies selling similar products, prices might be higher in one situation compared to the other. The researchers wanted to see if consumers benefit more under price competition or quantity competition. They found that regardless of whether the products are similar or different, both consumers and everyone involved in the market benefit more when companies compete by setting prices rather than by deciding how much to produce. This conclusion challenges the idea that lower prices always result from companies setting prices instead of quantities.