Economics Dictionary of ArgumentsHome
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| Consumer's sovereignty: Consumer's sovereignty in economics refers to the idea that consumer preferences and choices drive the production of goods and services. Producers cater to consumer demands to maximize profit, making consumers the ultimate decision-makers in the market. It highlights the power of consumer demand in shaping resource allocation and economic activities. See also consumption, market, price, demand. See also Consumption, Marketing research, Economy._____________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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Murray N. Rothbard on Consumer’s Sovereignty - Dictionary of Arguments
Rothbard III 629 Consumer’s Sovereignty/Rothbard: (…) the free market economy people will tend to produce those goods most demanded by the consumers. >Consumption, >Free market/Rothbard, >Demand/Rothbard. Some economists have termed this system "consumers' sovereignty." RothbardVsConsumer’s sovereignty: Yet there is no compulsion about this. The choice is purely an independent one by the producer; his dependence on the consumer is purely voluntary, the result of his own choice for the "maximization" of utility, and it is a choice that he is free to revoke at any time. >Utility/Rothbard, >Value/Rothbard. (…) the pursuit of monetary return (the consequence of consumer demand) is engaged in by each individual only to the extent that other things are equal. These other things are the individual producer's psychic valuations, and they may counteract monetary influences. An example is a laborer or other factor-owner engaged in a certain line ofwork at less monetary return than elsewhere. RothbardVsHutt: The term "consumers' sovereignty" is a typical example of the abuse, in economics, of a terrn ("sovereignty") appropriate only to the political realm and is thus an illustration of the dangers of the application of metaphors taken from other disciplines. "Sovereignty" is the quality of ultimate political power; it is the power resting on the use of violence. In a purely free society, each individual is sovereign over his own person and property, and it is therefore this self-sovereignty which obtains on the free market. No one is "sovereign" over anyone else's actions or exchanges. Since the consumers do not have the power to coerce producers into various occupations and work, the former are not "sovereign" over the latter. >Consumer’s Sovereignty/Hutt._____________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. |
Rothbard II Murray N. Rothbard Classical Economics. An Austrian Perspective on the History of Economic Thought. Cheltenham, UK: Edward Elgar Publishing. Cheltenham 1995 Rothbard III Murray N. Rothbard Man, Economy and State with Power and Market. Study Edition Auburn, Alabama 1962, 1970, 2009 Rothbard IV Murray N. Rothbard The Essential von Mises Auburn, Alabama 1988 Rothbard V Murray N. Rothbard Power and Market: Government and the Economy Kansas City 1977 |
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