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Notably price discovery doesn't function in labor markets because there is no way (for most people) to not participate in the labor market. That doesn't follow
by orangecat 8y ago
Notably price discovery doesn't function in labor markets because there is no way (for most people) to not participate in the labor market.
That doesn't follow, unless you're going to claim that price discovery also doesn't function for food, housing, clothing, and cell phones.
- SolarNet 8y agoFor three out of the four, there are options not to participate. Housing I would claim also suffers from market distortions. Food, I can choose not to participate in any given variety of food markets, I can buy groceries, or I can go to restaurants, or I can buy from family farms and hunters. Or I can make it myself. Clothing is similar to food. And cell phones are trivially easy to refuse to participate.