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Economists Favour the Price System--Who Else Does?


  • Frey, Bruno S


Most people except professional academic economists resist or reject the use of the price system. The four main reasons are: lack of information; undesirable distributional consequences; unfairness and reluctance to trade; and adverse effects on preferences. The reasons brought forward against the price system are only partly convincing, particularly in comparison to other decision-making systems. The use of the price system may create more problems than traditional neoclassical economics admits. The difficulties and paradoxes connected with the use of the price system provide a challenge to existing economic theory. Copyright 1986 by WWZ and Helbing & Lichtenhahn Verlag AG

Suggested Citation

  • Frey, Bruno S, 1986. "Economists Favour the Price System--Who Else Does?," Kyklos, Wiley Blackwell, vol. 39(4), pages 537-563.
  • Handle: RePEc:bla:kyklos:v:39:y:1986:i:4:p:537-63

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    References listed on IDEAS

    1. Milton Friedman & Anna J. Schwartz, 1982. "Monetary Trends in the United States and United Kingdom: Their Relation to Income, Prices, and Interest Rates, 1867–1975," NBER Books, National Bureau of Economic Research, Inc, number frie82-2, January.
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    Cited by:

    1. Hamza Bennani, 2015. "Dissecting the brains of central bankers: The case of the ECB’s Governing Council members on reforms," International Economics, CEPII research center, issue 141, pages 97-114.
    2. Haucap, Justus & Heimeshoff, Ulrich, 2014. "The happiness of economists: Estimating the causal effect of studying economics on subjective well-being," International Review of Economics Education, Elsevier, vol. 17(C), pages 85-97.
    3. Kirchgassner, Gebhard, 2005. "(Why) are economists different?," European Journal of Political Economy, Elsevier, vol. 21(3), pages 543-562, September.
    4. Giuseppe Munda, 2014. "On the Use of Shadow Prices for Sustainable Well-Being Measurement," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 118(2), pages 911-918, September.
    5. Amélie Goossens & Pierre-Guillaume Méon, 2015. "The Belief that Market Transactions Are Mutually Beneficial: A Comparison of the Views of Students in Economics and Other Disciplines," Post-Print CEB 2013/162215, ULB -- Universite Libre de Bruxelles.
    6. repec:spr:jbecon:v:87:y:2017:i:8:d:10.1007_s11573-016-0842-4 is not listed on IDEAS
    7. Konstantinos Pouliakas, 2010. "Pay Enough, Don't Pay Too Much or Don't Pay at All? The Impact of Bonus Intensity on Job Satisfaction," Kyklos, Wiley Blackwell, vol. 63(4), pages 597-626, November.
    8. Paul Anand & Alastair Gray, 2009. "Obesity as Market Failure: Could a 'Deliberative Economy' Overcome the Problems of Paternalism?," Kyklos, Wiley Blackwell, vol. 62(2), pages 182-190, April.
    9. Avner Offer, 2008. "British Manual Workers: From Producers to Consumers, c. 1950–2000," Oxford University Economic and Social History Series _074, Economics Group, Nuffield College, University of Oxford.
    10. Cramon-Taubadel, Stephan von, 1992. "A critical assessment of the political preference function approach in agricultural economics," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 7(3-4), October.
    11. Amélie Goossens & Pierre-Guillaume Méon, 2010. "The impact of studying economics, and other disciplines, on the belief that voluntary exchange makes everyone better off," Working Papers CEB 10-012.RS, ULB -- Universite Libre de Bruxelles.
    12. René L. Frey, 1987. "Wirtschaftswachstum und Umweltqualität: Auf der Suche nach einer neuen Wachstumspolitik," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 123(III), pages 289-315, September.
    13. Alfred Meier, 1988. "Wettbewerbsbeschränkungen in der schweizerischen Versicherungswirtschaft und ihre volkswirtschaftliche Beurteilung," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 124(III), pages 377-390, September.
    14. Rauscher, Michael, 1997. "Voluntary Emission Reductions, Social Rewards, and Environmental Policy," Thuenen-Series of Applied Economic Theory 10, University of Rostock, Institute of Economics.
    15. Michael Rauscher, 2006. "Voluntary Emission Reductions, Social Rewards, and Environmental Policy," CESifo Working Paper Series 1838, CESifo Group Munich.
    16. João Carlos Graça & João Carlos Lopes & Rita Gomes Correia, 2014. "Economics education: literacy or mind framing? Evidence from a survey on the social building of trust in Portugal," Working Papers Department of Economics 2014/20, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    17. Avner Offer, 2013. "Regard," Chapters,in: Handbook on the Economics of Reciprocity and Social Enterprise, chapter 29, pages 285-294 Edward Elgar Publishing.

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