3 ms·
Four Functions of Markets
- maest 6y agoMarkets are fine - great even! I see two issues with the way they are used: 1. they only work under certain (sometimes unrealistic) conditions and these necessary conditions are often ignored by proponents of market-solutions. 2. They sometimes optimise for the wrong thing. 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.