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Four Functions of Markets

13 pointsby jashkenasabout 5 years ago

1 comment

maestabout 5 years ago
Markets are fine - great even! I see two issues with the way they are used:<p>1. they only work under certain (sometimes unrealistic) conditions and these necessary conditions are often ignored by proponents of market-solutions.<p>2. They sometimes optimise for the wrong thing.<p>Externalities (e.g. environmental impact), monopolies, negotiation under assymetric information (e.g. salary negotiations) and other failure modes fall under #1. These are situations where absolutely free markets do not function correctly.