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When people talk about "free" markets it usually means markets where these types of problems are effectively managed or mitigated, not "markets with no rules".
by tomatocracy 6y ago
When people talk about "free" markets it usually means markets where these types of problems are effectively managed or mitigated, not "markets with no rules".
There's of course lots of debate about what the right policies to manage and mitigate these are but it doesn't mean that markets aren't a good mechanism just because there might be trade-offs or imperfect solutions.
- TeMPOraL 6y agoI always understood "free" markets to be ones run by supply and demand, without authoritarian interference. That does not exclude principal-agent problems, though. I'm also not saying markets aren't a good idea. Just I don't believe they're the core of the solution to the problem I outlined upthread.