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talkpoliticsI have recently written a short article on issues that I've been considering for quite a while; that is the relationship between the model of perfect competition (and resultant 'free market' political orientation that results), and it difference between the model and actual markets.
The assumption that free markets generate perfect competition is probably the worst intellectual fallacy of our modern age, but I am not convinced by anti-market ideology that many opponents have. Rather I am leaning towards the notion of interventions from without that encourage the conditions that perfect competition is meant to have.
A couple of comments; firstly, this is only a sketch, making a statement of general orientation, and is quite incomplete. Suggesting more difficult edge cases is encouraged. Secondly, I am thinking of expanding the discussion on externalities to identify the preferred activity of cooperative public versus competitive enterprises in a matrix with planning or market mechanisms depending on the complexity of production, where highly complex goods and services are more orientated towards market mechanism and low complexity goods and services towards planning models.
The assumption that free markets generate perfect competition is probably the worst intellectual fallacy of our modern age, but I am not convinced by anti-market ideology that many opponents have. Rather I am leaning towards the notion of interventions from without that encourage the conditions that perfect competition is meant to have.
A couple of comments; firstly, this is only a sketch, making a statement of general orientation, and is quite incomplete. Suggesting more difficult edge cases is encouraged. Secondly, I am thinking of expanding the discussion on externalities to identify the preferred activity of cooperative public versus competitive enterprises in a matrix with planning or market mechanisms depending on the complexity of production, where highly complex goods and services are more orientated towards market mechanism and low complexity goods and services towards planning models.
(no subject)
Date: 2/4/16 06:20 (UTC)