3 ms·
Communist societies are more prone to "favors" because Price discrimination (and other market mechanisms) do not exist. Actually, that happens in all sort of s
by AnAfrican 10y ago
Communist societies are more prone to "favors" because Price discrimination (and other market mechanisms) do not exist.
Actually, that happens in all sort of societies that are not Legal-Rational Liberal-Capitalist.
- userulluipeste 10y ago"Communist societies are more prone to «favors» because Price discrimination (and other market mechanisms) do not exist." I'm not sure you got it right. Price discrimination and other market mechanisms existed, more or less, in communist societies too. The problem was that there was this seller's market. A lot of things were scarce, be it natural or artificial scarcity (a gatekeepers induced one), and besides the fact that the supplier could inflate the price a lot, you still had to have connections to have a chance to the bid. Excluding the communist idealistic selfless individuals that did their job as best as they could indiscriminately, the norm was for people to leverage their positions. For one, this way they created "markets" for their supplied services or access to goods. For another, this is how you get what you have or do to worth anything in the eyes of others. So this was besides the currency based market. It was a favor based market that overlapped the first.