The limitations of markets: Background essay
Business leaders and voting citizens as well as policy makers are influenced in their decision-making by the idea that a “perfectly free” market can produce a social optimum (a “best of all possible worlds”). Because this idea is so influential, it is important to understand the conditions that must be met for the theory to work. The theoretic prediction of the optimality of market outcomes presupposes a number of requirements, which can be grouped into three broad categories: (1) the assumption of perfectly functioning markets; (2) market-oriented patterns of motivation and behavior, on the part of both individuals and firms; and (3) the universal existence and scope of markets.
|Date of creation:||2005|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- William E. Kovacic & Carl Shapiro, 2003.
"Antitrust Policy: A Century of Economic and Legal Thinking,"
Law and Economics
- William E. Kovacic & Carl Shapiro, 2000. "Antitrust Policy: A Century of Economic and Legal Thinking," Journal of Economic Perspectives, American Economic Association, vol. 14(1), pages 43-60, Winter.
- Kovacic, William E. & Shapiro, Carl, 1999. "Antitrust Policy: A Century of Economic and Legal Thinking," Competition Policy Center, Working Paper Series qt5zb4g387, Competition Policy Center, Institute for Business and Economic Research, UC Berkeley.
- repec:cup:cbooks:9780521023290 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:27940. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.