Economics Dictionary of ArgumentsHome
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| Free market: A free market in economics is a system where prices and the distribution of goods and services are determined by supply and demand, with minimal government intervention. In a free market, producers and consumers make decisions based on their self-interest, leading to competition, innovation, and efficient resource allocation. See also Markets._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Harold Demsetz on Free Market - Dictionary of Arguments
Henderson I 57 Free Markets/Demsetz/Henderson/Globerman: Demsetz did not dogmatically argue that free markets are necessarily preferable to some degree of government intervention. What he did do, though, was practice what he preached. Institution/Demsetz: Because Demsetz advocated a "comparative institutions" approach, he proceeded to compare institutions. Consider, for example, attitudes to risk. >Risks, >Risk aversion, >Comparisons, >Institutions. Demsetz: „The psychological propensity to be risk averse, if it is present, is found in employees of government as well as in employees of private enterprise, and a government probably is averse to political risks.“ (1969(1): 9) Public/private sector/Demsetz: Moreover, Demsetz noted, government offcials are often much more risk-averse than are businesses in the private sector. He pointed out that creating a better postal service "seems to be technologically possible and economically promising." But because politicians are "very averse to the risk of being voted out of offce" they hold back on improvements that might lead to layoffs of postal employees. 1. Demsetz, Harold (1969). Information and Efficiency: Another Viewpoint. Journal of Law and Economics 12, 1 (April): 1-22._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
EconDems I Harold Demsetz Toward a theory of property rights 1967 Henderson I David R. Henderson Steven Globerman The Essential UCLA School of Economics Vancouver: Fraser Institute. 2019 |
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