Misplaced Pages

Latest revision as of 20:13, 12 December 2024

This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. Find sources: "Market economy" – news · newspapers · books · scholar · JSTOR (November 2021) (Learn how and when to remove this message)

Part of a series on
Liberalism
History Age of Enlightenment List of liberal theorists (contributions to liberal theory)
Principles Consent of the governed Due process Democracy Economic liberalism Economic globalization Equality Gender Legal Federalism Freedom Economic Market Trade Press Religion Speech Harm principle Internationalism Invisible hand Labor theory of property Laissez-faire Liberty Negative Positive Limited government Market economy Natural monopoly Open society Permissive society Popular sovereignty Property Private Public Rights Civil and political Natural and legal To own property To bear arms Rule of law Secularism Secular humanism Separation of church and state Separation of powers Social contract Social justice Social services Welfare state Whig history
Philosophers Milton Locke Spinoza Montesquieu Voltaire Rousseau Smith Kant Turgot Burke Priestley Paine Beccaria Condorcet Bentham Korais De Gouges Wollstonecraft Staël Say Humboldt Constant Ricardo Guizot List Bastiat Martineau Emerson Tocqueville Mill Spencer Arnold Acton Weber Hobhouse Croce Cassirer Mises Ortega Keynes Collingwood Čapek Hu Hayek Popper Aron Berlin Friedman Rawls Sen Nozick Kymlicka Badawi
Politicians Jefferson Kołłątaj Madison Artigas Bolívar Broglie Lamartine Macaulay Kossuth Deák Cobden Mazzini Juárez Lincoln Gladstone Cavour Sarmiento Mommsen Naoroji Itagaki Levski Kemal Deakin Milyukov Lloyd George Venizelos Ståhlberg Gokhale Rathenau Madero Einaudi King Roosevelt Pearson Ohlin Kennedy Jenkins Balcerowicz Verhofstadt Obama Macron
Organizations Africa Liberal Network Alliance of Liberals and Democrats for Europe Alliance of Liberals and Democrats for Europe Party Arab Liberal Federation Council of Asian Liberals and Democrats European Democratic Party European Liberal Youth International Alliance of Libertarian Parties International Federation of Liberal Youth Liberal International Liberal Network for Latin America Liberal parties Liberal South East European Network
Regional variants Europe Latin America Albania Armenia Australia Austria Belgium Bolivia Brazil Bulgaria Canada Chile China Hong Kong Colombia Costa Rica Croatia Cuba Cyprus Czechia Denmark Ecuador Egypt Estonia Finland France Georgia Germany Greece Venizelism Honduras Hungary India Iran Israel Italy Liberism Japan Latvia Lithuania Luxembourg Mexico Moldova Montenegro Netherlands New Zealand Nicaragua Nigeria North Macedonia Norway Panama Paraguay Peru Philippines Poland Cracovian Portugal Romania Russia Senegal Serbia Slovakia Slovenia South Africa South Korea Spain Sweden Switzerland Taiwan Thailand Tunisia Turkey Ukraine United Kingdom Cobdenism Gladstonian Manchester Whiggism United States Arizona School Classical Jeffersonian Modern Uruguay Venezuela Zimbabwe
Related topics Anti-authoritarianism Anti-communism Bias in American academia Bias in the media Capitalism Democratic Centrism Radical centrism Economic freedom Egalitarianism Empiricism Humanism Individualism Anarchist Land value tax Libertarianism Left Right Pirate Party Progressivism Sexually liberal feminism Utilitarianism
Schools Classical Conservative Cultural Feminist Equity Green Internationalist Muscular National Neoclassical Neo Ordo Radical Religious Christian Catholic Islamic Jewish Secular Social Techno Third Way
Liberalism portal Politics portal
v t e

A market economy is an economic system in which the decisions regarding investment, production, and distribution to the consumers are guided by the price signals created by the forces of supply and demand. The major characteristic of a market economy is the existence of factor markets that play a dominant role in the allocation of capital and the factors of production.

Market economies range from minimally regulated free market and laissez-faire systems where state activity is restricted to providing public goods and services and safeguarding private ownership, to interventionist forms where the government plays an active role in correcting market failures and promoting social welfare. State-directed or dirigist economies are those where the state plays a directive role in guiding the overall development of the market through industrial policies or indicative planning—which guides yet does not substitute the market for economic planning—a form sometimes referred to as a mixed economy.

Market economies are contrasted with planned economies where investment and production decisions are embodied in an integrated economy-wide economic plan. In a centrally planned economy, economic planning is the principal allocation mechanism between firms rather than markets, with the economy's means of production being owned and operated by a single organizational body.

Characteristics

Property rights

For market economies to function efficiently, governments must establish clearly defined and enforceable property rights for assets and capital goods. However, property rights do not specifically mean private property rights and market economies do not logically presuppose the existence of private ownership of the means of production. Market economies can and often do include various types of cooperatives or autonomous state-owned enterprises that acquire capital goods and raw materials in capital markets. These enterprises utilize a market-determined free price system to allocate capital goods and labor. In addition, there are many variations of market socialism where the majority of capital assets are socially owned with markets allocating resources between socially owned firms. These models range from systems based on employee-owned enterprises based on self-management to a combination of public ownership of the means of production with factor markets.

Supply and demand

Supply and demand supposedly work in tandem. The economic theory is that supply slopes upwards as people buy more and demand drops as prices rise and people buy less.

Market economies rely upon a price system to signal market actors to adjust production and investment. Price formation relies on the interaction of supply and demand to reach or approximate an equilibrium where the unit price for a particular good or service is at a point where the quantity demanded equals the quantity supplied.

The price data point where the supply and demand lines intersect is called the market-clearing price.

Governments can intervene by establishing price ceilings or price floors in specific markets (such as minimum wage laws in the labor market), or use fiscal policy to discourage certain consumer behavior or to address market externalities generated by certain transactions (Pigovian taxes). Different perspectives exist on the role of government in both regulating and guiding market economies and in addressing social inequalities produced by markets. Fundamentally, a market economy requires that a price system affected by supply and demand exists as the primary mechanism for allocating resources irrespective of the level of regulation.

Capitalism

Capitalism is an economic system where the means of production are largely or entirely privately owned and operated for a profit, structured on the process of capital accumulation. In general, in capitalist systems investment, distribution, income and prices are determined by markets, whether regulated or unregulated.

There are different variations of capitalism with different relationships to markets. In laissez-faire and free-market variations of capitalism, markets are utilized most extensively with minimal or no state intervention and minimal or no regulation over prices and the supply of goods and services. In interventionist, welfare capitalism and mixed economies, markets continue to play a dominant role, but they are regulated to some extent by the government in order to correct market failures or to promote social welfare. In state capitalist systems, markets are relied upon the least, with the state relying heavily on either indicative planning and/or state-owned enterprises to accumulate capital.

Capitalism has been dominant in the Western world since the end of mercantilism. However, it is argued that the term mixed economies more precisely describes most contemporary economies due to their containing both private-owned and state-owned enterprises. In capitalism, prices determine the demand-supply scale. Higher demand for certain goods and services leads to higher prices and lower demand for certain goods lead to lower prices, in relation to supply.

Free-market capitalism

A capitalist free-market economy is an economic system where prices for goods and services are set freely by the forces of supply and demand and are expected by its supporters to reach their point of equilibrium without intervention by government policy. It typically entails support for highly competitive markets, private ownership of productive enterprises. Laissez-faire is a more extensive form of free-market economy where the role of the state is limited to protecting property rights and enforcing contracts.

Laissez-faire

Laissez-faire is synonymous with what was referred to as strict free-market economy during the early and mid-19th century as a classical liberal ideal to achieve. It is generally understood that the necessary components for the functioning of an idealized free market include the complete absence of government regulation, subsidies, artificial price pressures and government-granted monopolies (usually classified as coercive monopoly by free market advocates) and no taxes or tariffs other than what is necessary for the government to provide protection from coercion and theft, maintaining peace and property rights and providing for basic public goods. Right-libertarian advocates of anarcho-capitalism see the state as morally illegitimate and economically unnecessary and destructive. Although laissez-faire has been commonly associated with capitalism, there is a similar left-wing laissez-faire system called free-market anarchism, also known as free-market anti-capitalism and free-market socialism to distinguish it from laissez-faire capitalism. Thus, critics of laissez-faire as commonly understood argues that a truly laissez-faire system would be anti-capitalist and socialist.

Welfare capitalism

Welfare capitalism is a capitalist economy that includes public policies favoring extensive provisions for social welfare services. The economic mechanism involves a free market and the predominance of privately owned enterprises in the economy, but public provision of universal welfare services aimed at enhancing individual autonomy and maximizing equality. Examples of contemporary welfare capitalism include the Nordic model of capitalism predominant in Northern Europe.

Regional models

Anglo-Saxon model

Anglo-Saxon capitalism is the form of capitalism predominant in Anglophone countries and typified by the economy of the United States. It is contrasted with European models of capitalism such as the continental social market model and the Nordic model. Anglo-Saxon capitalism refers to a macroeconomic policy regime and capital market structure common to the Anglophone economies. Among these characteristics are low rates of taxation, more open international markets, lower labor market protections and a less generous welfare state eschewing collective bargaining schemes found in the continental and northern European models of capitalism.

East Asian model

The East Asian model of capitalism involves a strong role for state investment and in some instances involves state-owned enterprises. The state takes an active role in promoting economic development through subsidies, the facilitation of "national champions" and an export-based model of growth. The actual practice of this model varies by country. This designation has been applied to the economies of China, Japan, Singapore, South Korea, and Vietnam.

A related concept in political science is the developmental state.

Social market economy

The social market economy was implemented by Alfred Müller-Armack and Ludwig Erhard after World War II in West Germany. The social market economic model, sometimes called Rhine capitalism, is based upon the idea of realizing the benefits of a free-market economy, especially economic performance and high supply of goods while avoiding disadvantages such as market failure, destructive competition, concentration of economic power and the socially harmful effects of market processes. The aim of the social market economy is to realize greatest prosperity combined with best possible social security. One difference from the free market economy is that the state is not passive, but instead takes active regulatory measures. The social policy objectives include employment, housing and education policies, as well as a socio-politically motivated balancing of the distribution of income growth. Characteristics of social market economies are a strong competition policy and a contractionary monetary policy. The philosophical background is neoliberalism or ordoliberalism.

Socialism

Market socialism is a form of market economy where the means of production are socially owned. In a market socialist economy, firms operate according to the rules of supply and demand and operate to maximize profit; the principal difference between market socialism and capitalism being that the profits accrue either directly to the workers of the company or society as a whole as opposed to private owners.

The distinguishing feature between non-market socialism and market socialism is the existence of a market for factors of production and the criteria of profitability for enterprises. Profits derived from publicly owned enterprises can variously be used to reinvest in further production, to directly finance government and social services, or be distributed to the public at large through a social dividend or basic income system.

Advocates of market socialism such as Jaroslav Vaněk argue that genuinely free markets are not possible under conditions of private ownership of productive property. Instead, he contends that the class differences and inequalities in income and power that result from private ownership enable the interests of the dominant class to skew the market to their favor, either in the form of monopoly and market power, or by utilizing their wealth and resources to legislate government policies that benefit their specific business interests. Additionally, Vaněk states that workers in a socialist economy based on cooperative and self-managed enterprises have stronger incentives to maximize productivity because they would receive a share of the profits (based on the overall performance of their enterprise) in addition to receiving their fixed wage or salary. The stronger incentives to maximize productivity that he conceives as possible in a socialist economy based on cooperative and self-managed enterprises might be accomplished in a free-market economy if cooperatives were the norm as envisioned by various thinkers including Louis O. Kelso and James S. Albus.

Models of market socialism

Market socialism traces its roots to classical economics and the works of Adam Smith, the Ricardian socialists and mutualist philosophers.

In the 1930s, the economists Oskar Lange and Abba Lerner developed a model of socialism that posited that a public body (dubbed the Central Planning Board) could set prices through a trial-and-error approach until they equaled the marginal cost of production in order to achieve perfect competition and pareto optimality. In this model of socialism, firms would be state-owned and managed by their employees and the profits would be disbursed among the population in a social dividend. This model came to be referred to as market socialism because it involved the use of money, a price system and simulated capital markets, all of which were absent from traditional non-market socialism.

A more contemporary model of market socialism is that put forth by the American economist John Roemer, referred to as economic democracy. In this model, social ownership is achieved through public ownership of equity in a market economy. A Bureau of Public Ownership would own controlling shares in publicly listed firms, so that the profits generated would be used for public finance and the provision of a basic income.

Some anarchists and libertarian socialists promote a form of market socialism in which enterprises are owned and managed cooperatively by their workforce so that the profits directly remunerate the employee-owners. These cooperative enterprises would compete with each other in the same way private companies compete with each other in a capitalist market. The first major elaboration of this type of market socialism was made by Pierre-Joseph Proudhon and was called mutualism.

Self-managed market socialism was promoted in Yugoslavia by economists Branko Horvat and Jaroslav Vaněk. In the self-managed model of socialism, firms would be directly owned by their employees and the management board would be elected by employees. These cooperative firms would compete with each other in a market for both capital goods and for selling consumer goods.

Socialist market economy

Following the 1978 reforms, China developed what it calls a socialist market economy in which most of the economy is under state ownership, with the state enterprises organized as joint-stock companies with various government agencies owning controlling shares through a shareholder system. Prices are set by a largely free-price system and the state-owned enterprises are not subjected to micromanagement by a government planning agency. A similar system called socialist-oriented market economy has emerged in Vietnam following the Đổi Mới reforms in 1986. This system is frequently characterized as state capitalism instead of market socialism because there is no meaningful degree of employee self-management in firms, because the state enterprises retain their profits instead of distributing them to the workforce or government and because many function as de facto private enterprises. The profits neither finance a social dividend to benefit the population at large, nor do they accrue to their employees. In China, this economic model is presented as a preliminary stage of socialism to explain the dominance of capitalistic management practices and forms of enterprise organization in both the state and non-state sectors.

In religion

A wide range of philosophers and theologians have linked market economies to concepts from monotheistic religions. Michael Novak described capitalism as being closely related to Catholicism, but Max Weber drew a connection between capitalism and Protestantism. The economist Jeffrey Sachs has stated that his work was inspired by the healing characteristics of Judaism. Chief Rabbi Lord Sacks of the United Synagogue draws a correlation between modern capitalism and the Jewish image of the Golden Calf.

Christianity

In the Christian faith, the liberation theology movement advocated involving the church in labor market capitalism. Many priests and nuns integrated themselves into labor organizations while others moved into the slums to live among the poor. The Holy Trinity was interpreted as a call for social equality and the elimination of poverty. However, the Pope John Paul II was highly active in his criticism of liberation theology. He was particularly concerned about the increased fusion between Christianity and Marxism. He closed Catholic institutions that taught liberation theology and dismissed some of its activists from the church.

Buddhism

The Buddhist approach to the market economy was dealt with in E. F. Schumacher's 1966 essay "Buddhist Economics". Schumacher asserted that a market economy guided by Buddhist principles would more successfully meet the needs of its people. He emphasized the importance or pursuing occupations that adhered to Buddhist teachings. The essay would later become required reading for a course that Clair Brown offered at University of California, Berkeley.

Criticism

The economist Joseph Stiglitz argues that markets suffer from informational inefficiency and the presumed efficiency of markets stems from the faulty assumptions of neoclassical welfare economics, particularly the assumption of perfect and costless information and related incentive problems. Neoclassical economics assumes static equilibrium and efficient markets require that there be no non-convexities, even though nonconvexities are pervasive in modern economies. Stiglitz's critique applies to both existing models of capitalism and to hypothetical models of market socialism. However, Stiglitz does not advocate replacing markets, but instead states that there is a significant role for government intervention to boost the efficiency of markets and to address the pervasive market failures that exist in contemporary economies. A fair market economy is in fact a martingale or a Brownian motion model and for a participant competitor in such a model there is no more than 50% of success chances at any given moment. Due to the fractal nature of any fair market and being market participants subject to the law of competition which impose reinvesting an increasing part of profits, the mean statistical chance of bankruptcy within the half life of any participant is also 50% and 100% whether an infinite sample of time is considered.

Robin Hahnel and Michael Albert claim that "markets inherently produce class division". Albert states that even if everyone started out with a balanced job complex (doing a mix of roles of varying creativity, responsibility and empowerment) in a market economy, class divisions would arise, arguing:

Without taking the argument that far, it is evident that in a market system with uneven distribution of empowering work, such as Economic Democracy, some workers will be more able than others to capture the benefits of economic gain. For example, if one worker designs cars and another builds them, the designer will use his cognitive skills more frequently than the builder. In the long term, the designer will become more adept at conceptual work than the builder, giving the former greater bargaining power in a firm over the distribution of income. A conceptual worker who is not satisfied with his income can threaten to work for a company that will pay him more. The effect is a class division between conceptual and manual laborers, and ultimately managers and workers, and a de facto labor market for conceptual workers.

David McNally argues in the Marxist tradition that the logic of the market inherently produces inequitable outcomes and leads to unequal exchanges, arguing that Adam Smith's moral intent and moral philosophy espousing equal exchange was undermined by the practice of the free markets he championed. The development of the market economy involved coercion, exploitation and violence that Smith's moral philosophy could not countenance. McNally also criticizes market socialists for believing in the possibility of fair markets based on equal exchanges to be achieved by purging parasitical elements from the market economy such as private ownership of the means of production. McNally argues that market socialism is an oxymoron when socialism is defined as an end to wage-based labor.

The role of supply and demand in a market economy

Supply and demand play an instrumental role in driving market economies by setting both prices and quantities traded in markets. Supply is defined as any increase in price leading to an increase in supply from producers; demand on the other hand means any drop leads to an increase in desired quantities from consumers; these two laws meet at equilibrium when provided quantity equals quantity demanded - known as equilibrium price/quantity equilibrium point. Prices play an extremely vital role in market economies by providing important information about commodity and service availability. When there is strong demand but limited supply, prices increase, signaling to producers that there may be opportunities to increase profits by producing more of that product. Conversely, when there is low demand with increased supply then prices reduce, showing manufacturers they must either reduce output or find methods of cutting costs in order to stay competitive and remain profitable.

External factors, including shifting technological standards, new government laws, and natural catastrophes can have a substantial impact on supply and demand. Technological innovations may increase supply, while laws issued by governments could decrease it or even demand. Natural disasters have the ability to severely disrupt supply chains, creating shortages of key items that increase costs while simultaneously decreasing demand. Supply and demand play an indispensable role in any market economy by ensuring prices reflect market forces accurately, adapting accordingly as conditions shift between supply and demand situations, while producers adjust production according to price signals from consumers, fulfilling customers' requests while giving individuals freedom in making purchasing choices based on personal preferences or financial constraints. Thus supply and demand play an instrumental part in shaping and stabilizing economies governed by market forces.

Sustainable market economy

A sustainable market economy seeks to balance economic expansion and environmental preservation. It acknowledges that sustainable environmental protection and resource management are essential for long-term economic growth. To achieve this balance, implementing sustainable practices across sectors, such as lowering carbon emissions, developing renewable energy sources, and putting circular economy ideas into practice. Tax incentives, carbon trading programs, and environmental requirements are just a few ways government rules and policies encourage enterprises to adopt sustainable practices.

At the same time, consumer demand for eco-friendly goods and services and understanding of these issues may influence market dynamics to favour more sustainable options. A sustainable market economy may encourage innovation, provide green employment, and guarantee the welfare of future generations by incorporating environmental factors into economic decision-making. Prioritizing sustainability while preserving economic development needs cooperation between governments, corporations, and people.

See also

• Crony capitalism
• Corporatism
• Co-determination
• Economic freedom
• Gift economy
• Grey market
• Keynesian economics
• Market failure
• Market structure
• Monopoly
• Neoclassical economics
• Planned economy
• Regulated market

References

1. Gregory and Stuart, Paul & Robert (2004). Comparing Economic Systems in the Twenty-First Century (7th ed.). George Hoffman. p. 538. ISBN 0618261818. Market Economy: Economy in which fundamentals of supply and demand provide signals regarding resource utilization.
2. Altvater, E. (1993). The Future of the Market: An Essay on the Regulation of Money and Nature After the Collapse of "Actually Existing Socialism. Verso. p. 57.
3. Yu-Shan Wu (1995). Comparative Economic Transformations: Mainland China, Hungary, the Soviet Union, and Taiwan. Stanford University Press. p. 8. In laissez-faire capitalism, the state restricts itself to providing public goods and services that the economy cannot generate by itself and to safeguarding private ownership and the smooth operation of the self-regulating market.
4. Altvater, E. (1993). The Future of the Market: An Essay on the Regulation of Money and Nature After the Collapse of "Actually Existing Socialism. Verso. pp. 237–238.
5. Tucker, Irvin B. p 491. Macroeconomics for Today. West Publishing. p. 491
6. Paul M. Johnson (2005). "A Glossary of Political Economy Terms, Market economy". Auburn University. Archived from the original on 27 December 2012. Retrieved 28 December 2012.
7. Bock man, Johanna (2011). Markets in the name of Socialism: The Left-Wing origins of Neoliberalism. Stanford University Press. ISBN 978-0804775663.
8. ^ "Supply and Demand: Why Markets Tick". IMF. Retrieved 2024-09-22.
9. Chartier, Gary; Johnson, Charles W. (2011). Markets Not Capitalism: Individualist Anarchism Against Bosses, Inequality, Corporate Power, and Structural Poverty. Brooklyn, NY: Minor Compositions/Autonomedia
10. "It introduces an eye-opening approach to radical social thought, rooted equally in libertarian socialism and market anarchism." Chartier, Gary; Johnson, Charles W. (2011). Markets Not Capitalism: Individualist Anarchism Against Bosses, Inequality, Corporate Power, and Structural Poverty. Brooklyn, NY: Minor Compositions/Autonomedia. p. back cover.
11. "But there has always been a market-oriented strand of libertarian socialism that emphasizes voluntary cooperation between producers. And markets, properly understood, have always been about cooperation. As a commenter at Reason magazine's Hit&Run blog, remarking on Jesse Walker's link to the Kelly article, put it: "every trade is a cooperative act." In fact, it's a fairly common observation among market anarchists that genuinely free markets have the most legitimate claim to the label "socialism." "Socialism: A Perfectly Good Word Rehabilitated" Archived 2016-03-10 at the Wayback Machine by Kevin Carson at website of Center for a Stateless Society.
12. Nick Manley, "Brief Introduction To Left-Wing Laissez Faire Economic Theory: Part One" Archived 2021-08-18 at the Wayback Machine.
13. Nick Manley, "Brief Introduction To Left-Wing Laissez Faire Economic Theory: Part Two" Archived 2021-05-16 at the Wayback Machine.
14. "The surprising ingredients of Swedish success – free markets and social cohesion" (PDF). Institute of Economic Affairs. June 25, 2013. Archived (PDF) from the original on 2012-10-22. Retrieved January 15, 2014.
15. Anglo-Saxon capitalism, Business Dictionary on BusinessDictionary.com: http://www.businessdictionary.com/definition/Anglo-Saxon-capitalism.html Archived 2020-09-27 at the Wayback Machine
16. keyword "social market economy" = “Soziale Marktwirtschaft” Archived 2011-12-12 at the Wayback Machine Duden Wirtschaft von A bis Z. Grundlagenwissen für Schule und Studium, Beruf und Alltag. 2. Aufl. Mannheim: Bibliographisches Institut & F.A. Brockhaus 2004. Lizenzausgabe Bonn: Bundeszentrale für politische Bildung 2004.
17. Duden Wirtschaft von A bis Z. "Eintrag: keyword "social market economy" = Soziale Marktwirtschaft" Archived 2012-08-29 at the Wayback Machine.
18. Comparing Economic Systems in the Twenty-First Century, 2003, by Gregory and Stuart. ISBN 0618261818. (p. 142): "It is an economic system that combines social ownership of capital with market allocation of capital...The state owns the means of production, and returns accrue to society at large."
19. Social Dividend versus Basic Income Guarantee in Market Socialism, by Marangos, John. 2004. International Journal of Political Economy, vol. 34, no. 3, Fall 2004.
20. "Cooperative Economics: An Interview with Jaroslav Vanek" Archived 2021-08-17 at the Wayback Machine. Interview by Albert Perkins. Retrieved March 17, 2011.
21. McNally, David (1993). Against the Market: Political Economy, Market Socialism and the Marxist Critique. Verso. p. 44. ISBN 978-0860916062. ...by the 1820s, 'Smithian' apologists for industrial capitalism confronted 'Smithian' socialists in a vigorous, and often venomous, debate over political economy.
22. Lord Sacks, "Rediscovering Religious Values in the Market Economy" Archived 2017-12-20 at the Wayback Machine, HuffPost, February 11, 2012
23. "Liberation theology" Archived 2019-10-29 at the Wayback Machine, BBC, July 18, 2011
24. Kathleen Maclay, "Buddhist economics: oxymoron or idea whose time has come?" Archived 2020-04-13 at the Wayback Machine, Berkeley News, March 13, 2014
25. Michie, Jonathan (2001). Reader's Guide to the Social Sciences. Routledge. p. 1012. ISBN 978-1579580919. Stiglitz criticizes the first and second welfare theorems for being based on the assumptions of complete markets (including a full set of futures and risk markets) and perfect and costless information, which are simply not true. Incentives are dubious too. Thus, capitalist markets are also not efficient and there is some role for government intervention. The ability to decentralize using the price system requires that there be no nonconvexities, but nonconvexities are pervasive.
26. Podobnik, Boris; Horvatic, Davor; Petersen, Alexander M.; Urošević, Branko; Stanley, H. Eugene (2010-10-26). "Bankruptcy risk model and empirical tests". Proceedings of the National Academy of Sciences of the United States of America. 107 (43): 18325–18330. arXiv:1011.2670. Bibcode:2010PNAS..10718325P. doi:10.1073/pnas.1011942107. ISSN 0027-8424. PMC 2972955. PMID 20937903.
27. ^ Weiss, Adam (2005-05-04). "A Comparison of Economic Democracy and Participatory Economics". ZMag. Archived from the original on 2009-04-02. Retrieved 2008-06-26.
28. McNally, David (1993). Against the Market: Political Economy, Market Socialism and the Marxist Critique. Verso. ISBN 978-0860916062.
29. Jadidzadeh, Ali; Serletis, Apostolos (2017-03-01). "How does the U.S. natural gas market react to demand and supply shocks in the crude oil market?". Energy Economics. 63: 66–74. doi:10.1016/j.eneco.2017.01.007. ISSN 0140-9883. S2CID 157939150. Archived from the original on 2020-06-23. Retrieved 2023-04-21.
30. Kiseleva, Irina Anatolievna (2021-07-10). "Simulations of Supply and Demand Forecasting in A Market Economy". Revista Gestão Inovação e Tecnologias. 11 (4): 1669–1684. doi:10.47059/revistageintec.v11i4.2218. S2CID 236467969. Archived from the original on 2022-01-27. Retrieved 2023-04-21.
31. Tomassetti, Paolo (2018–2019). "Labor Law and Environmental Sustainability". Comparative Labor Law & Policy Journal. 40: 61.
32. Zhang, Xiaoyun; Dong, Feng (January 2020). "Why Do Consumers Make Green Purchase Decisions? Insights from a Systematic Review". International Journal of Environmental Research and Public Health. 17 (18): 6607. doi:10.3390/ijerph17186607. ISSN 1660-4601. PMC 7559813. PMID 32932797.

Further reading

• Åslund, Anders. “The Rise of State Capitalism.” Russia's Crony Capitalism: The Path from Market Economy to Kleptocracy, Yale University Press, 2019, pp. 97–131, doi:10.2307/j.ctvgc61tr.8.
• Beckert, J. and Aspers, P. (2011). The Worth of Goods: Valuation and Pricing in the Economy. Oxford University Press. ISBN 9780191618680.{{cite book}}: CS1 maint: multiple names: authors list (link)
• Boudreaux, Donald J. (2008). "Free-Market Economy". In Hamowy, Ronald (ed.). The Encyclopedia of Libertarianism. Thousand Oaks, CA: Sage; Cato Institute. pp. 187–189. doi:10.4135/9781412965811.n114. ISBN 978-1412965804. LCCN 2008009151. OCLC 750831024. Archived from the original on 2023-01-09. Retrieved 2022-03-31.
• Boushey, Heather. “Market Structure.” Unbound: How Inequality Constricts Our Economy and What We Can Do about It, Harvard University Press, 2019, pp. 114–138, JSTOR j.ctv24trb7p.11.
• Chari, Anusha. “The International Market for Corporate Control.” Global Goliaths: Multinational Corporations in the 21st Century Economy, edited by C. FRITZ FOLEY et al., Brookings Institution Press, 2021, pp. 129–182, JSTOR 10.7864/j.ctv11hpt7b.7.
• Cochoy, Franck. “Another Discipline for the Market Economy: Marketing as a Performative Knowledge and Know-How for Capitalism.” The Sociological Review 46, no. 1_suppl (May 1998): 194–221. doi:10.1111/j.1467-954X.1998.tb03475.x
• Cordier, S., Pareschi, L. & Toscani, G. On a Kinetic Model for a Simple Market Economy. Journal of Statistical Physics 120, 253–277 (2005). doi:10.1007/s10955-005-5456-0
• Corneo, Giacoma and Daniel Steuer. “Market Economy Plus Welfare State.” Is Capitalism Obsolete?: A Journey through Alternative Economic Systems, Harvard University Press, 2017, pp. 225–248, JSTOR j.ctv24w62sr.14.
• Cowen, T. (2009). In Praise of Commercial Culture. Harvard University Press. ISBN 978-0674029934.
• Cox, H. (2016). The Market as God. Harvard University Press. ISBN 978-0674973152.
• Cronin, James E. “Market Rules and the International Economy.” Global Rules: America, Britain and a Disordered World, Yale University Press, 2014, pp. 121–147, JSTOR j.ctt1bhkp54.8.
• Cyndecka, Małgorzata Agnieszka. “The Applicability and Application of the Market Economy Investor Principle: Lessons Learnt from the Financial Crisis.” European State Aid Law Quarterly, vol. 16, no. 4, Lexxion Verlagsgesellschaft mbH, 2017, pp. 512–526, JSTOR stable/26694186.
• Doti, J. and Lee, D. (1991). The Market Economy: A Reader. Oxford University Press. ISBN 978-0195332582.{{cite book}}: CS1 maint: multiple names: authors list (link)

• Ebner, Alexander. “Continuity and Change in Germany's Social Market Economy: A Matter of Economic Style?” Contesting Deregulation: Debates, Practices and Developments in the West since the 1970s, edited by Knud Andresen and Stefan Müller, 1st ed., vol. 31, Berghahn Books, 2017, pp. 41–56, doi:10.2307/j.ctvw04gps.7.
• Finn, Daniel k. “What Can Be Done about Market Injustice?” Consumer Ethics in a Global Economy: How Buying Here Causes Injustice There, Georgetown University Press, 2019, pp. 143–153, doi:10.2307/j.ctvswx7rz.14.
• Hall, P.A. and Soskice, D. (2001). Varieties of Capitalism: The Institutional Foundations of Comparative Advantage. Oxford University Press. ISBN 978-0191647703.{{cite book}}: CS1 maint: multiple names: authors list (link)
• Hirschfeld, Mary L. “Toward a Humane Economy: A Pragmatic Approach.” Aquinas and the Market: Toward a Humane Economy, Harvard University Press, 2018, pp. 191–218, JSTOR j.ctvsf1p3x.10.
• Isachsen, A.J. and Gylfason, T. and Hamilton, C. and Hamilton, P.E.I.I.E.S.C.B. and Isachsen, P.I.E.A.J. (1992). Understanding the Market Economy. Oxford University Press. ISBN 978-0198773573. LCCN lc92024790.{{cite book}}: CS1 maint: multiple names: authors list (link)
• Johansson, P.O. (1991). An Introduction to Modern Welfare Economics. Cambridge University Press. ISBN 978-0521356954. LCCN 90020420.
• Kamien, M.I. and Schwartz, N.L. and Pencavel, J. (1982). Market Structure and Innovation. Cambridge Surveys of Economic Literature. Cambridge University Press. ISBN 978-0521293853. LCCN 81012254.{{cite book}}: CS1 maint: multiple names: authors list (link)

• Kratz, Agatha, et al. Time's Up: China's Coming Battle for Market Economy Status. European Council on Foreign Relations, 2016, JSTOR resrep21581.
• Kunde, Meg. “Making the Free Market Moral: Ronald Reagan's Covenantal Economy.” Rhetoric and Public Affairs, vol. 22, no. 2, Michigan State University Press, 2019, pp. 217–252, doi:10.14321/rhetpublaffa.22.2.0217.
• Lavigne, M. (1999). The Economics of Transition: From Socialist Economy to Market Economy. Macmillan Education. ISBN 978-1349273133.
• Lazonick, W. (1993). Business Organization and the Myth of the Market Economy. Cambridge University Press. ISBN 978-0521447881. LCCN 91008865.
• Leshem, Dotan. “From Ecclesiastical to Market Economy.” The Origins of Neoliberalism: Modeling the Economy from Jesus to Foucault, Columbia University Press, 2016, pp. 153–182, JSTOR 10.7312/lesh17776.11.
• Lothian, Tamara. “The Democratized Market Economy in Latin America (and Elsewhere): An Exercise in Institutional Thinking Within Law and Political Economy.” Law and the Wealth of Nations: Finance, Prosperity, and Democracy, Columbia University Press, 2017, pp. 138–196, JSTOR 10.7312/loth17466.8.
• Lothian, Tamara. “The Democratized Market Economy.” Law and the Wealth of Nations: Finance, Prosperity, and Democracy, Columbia University Press, 2017, pp. 113–137, JSTOR 10.7312/loth17466.7.
• Malinvaud, E. and United Nations (2000). Development Strategy and Management of the Market Economy. Oxford University Press. ISBN 978-0199241347.
• Malloy, R.P. (2000). Law and Market Economy: Reinterpreting the Values of Law and Economics. Cambridge University Press. ISBN 978-0521787314. LCCN 00711747.
• McKinnie, M. (2021). Theatre in Market Economies. Theatre and Performance Theory. Cambridge University Press. ISBN 978-1107000391. LCCN 2020039520.
• McKinnon, R.I. (1993) . The Order of Economic Liberalization: Financial Control in the Transition to a Market Economy. The Johns Hopkins Studies in Development. Johns Hopkins University Press. doi:10.1257/jep.5.4.107. ISBN 978-0801847431. LCCN 93021886.
• Mirowski, P. and Plehwe, D. (2015). The Road from Mont Pèlerin: The Making of the Neoliberal Thought Collective, With a New Preface. Harvard University Press. ISBN 978-0674088344. LCCN 2016303988.{{cite book}}: CS1 maint: multiple names: authors list (link)
• Mittermaier, Karl and Isabella Mittermaier. “Free-Market Dogmatism and Pragmatism.” In The Hand Behind the Invisible Hand: Dogmatic and Pragmatic Views on Free Markets and the State of Economic Theory, 1st ed., 23–26. Bristol University Press, 2020. doi:10.2307/j.ctv186grks.10
• Murphy, Kevin M, Andrei Shleifer, Robert W. Vishny, The Transition to a Market Economy: Pitfalls of Partial Reform, The Quarterly Journal of Economics, Volume 107, Issue 3, August 1992, pp. 889–906, doi:10.2307/2118367
• Nee, Victor. “The Role of the State in Making a Market Economy.” Journal of Institutional and Theoretical Economics (JITE) / Zeitschrift Für Die Gesamte Staatswissenschaft, vol. 156, no. 1, Mohr Siebeck GmbH & Co. KG, 2000, pp. 64–88, JSTOR 40752185
• Nee, V. and Opper, S. (2012). Capitalism from Below: Markets and Institutional Change in China. Harvard University Press. ISBN 978-0674065390. LCCN 2011042367.{{cite book}}: CS1 maint: multiple names: authors list (link)

• Nelson, Richard B. (2004). "The market economy, and the scientific commons". Research Policy. 33 (3): 455–471. doi:10.1016/j.respol.2003.09.008. hdl:10419/89454. ISSN 0048-7333.

• Ngo, Tak-Wing. “Asia and the Historicity of the Market Economy.” Verge: Studies in Global Asias, vol. 1, no. 1, University of Minnesota Press, 2015, pp. 44–50, doi:10.5749/vergstudglobasia.1.1.0044.
• Pomeranz, Kenneth. “Market Economies in Europe and Asia.” The Great Divergence: China, Europe, and the Making of the Modern World Economy, NED-New edition, vol. 117, Princeton University Press, 2021, pp. 69–108, doi:10.2307/j.ctv161f3dr.7.
• Ramanna, K. (2015). Political Standards: Corporate Interest, Ideology, and Leadership in the Shaping of Accounting Rules for the Market Economy. University of Chicago Press. ISBN 978-0226210742. LCCN 2015011503.
• Robin, Ron. “Castrophobia and the Free Market: The Wohlstetters’ Moral Economy.” The Cold World They Made: The Strategic Legacy of Roberta and Albert Wohlstetter, Harvard University Press, 2016, pp. 118–138, JSTOR j.ctv253f7gh.8.
• Rodgers, Daniel T. “Moralizing the Market Economy.” As a City on a Hill: The Story of America's Most Famous Lay Sermon, Princeton University Press, 2018, pp. 96–106, doi:10.2307/j.ctvc778b0.10.
• Root, H.L. (2020). Networking History: East vs. West in a Complex Systems Perspective. Cambridge University Press. ISBN 978-1108488990. LCCN 2019033289.

• Rosser, J.B.; Rosser, M.V. (2004). Comparative Economics in a Transforming World Economy. The MIT Press. MIT Press. ISBN 978-0262182348. LCCN 2003059363. Archived from the original on 2024-02-08. Retrieved 2022-03-11.

• Schebesta, Martin. Climate Change, Digitisation and Globalisation — Does the Social Market Economy Need Renewal? Konrad Adenauer Stiftung, 2020, JSTOR resrep25282.
• Sedgwick, P.H. (1999). The Market Economy and Christian Ethics. New studies in Christian ethics. Cambridge University Press. ISBN 978-1107112483. Archived from the original on 2024-02-08. Retrieved 2022-03-11.

• Shapiro, C. and Varian, H.R. (1998). Information Rules: A Strategic Guide to the Network Economy. Harvard Business Review Press. ISBN 978-1422154625. Archived from the original on 2024-02-08. Retrieved 2022-03-11.{{cite book}}: CS1 maint: multiple names: authors list (link)
• Skidelsky, R. (2018). Money and Government: The Past and Future of Economics. Yale University Press. ISBN 978-0300244243. Archived from the original on 2024-02-08. Retrieved 2022-03-11.
• Stiglitz, J.E. (1996). Whither Socialism?. Wicksell Lectures. MIT Press. ISBN 978-0262691826. LCCN lc93043188. Archived from the original on 2024-02-08. Retrieved 2022-03-11.
• Sumner, S. (2021). The Money Illusion: Market Monetarism, the Great Recession, and the Future of Monetary Policy. University of Chicago Press. ISBN 978-0226773681. LCCN 2020056573. Archived from the original on 2024-02-08. Retrieved 2022-03-11.
• Sundararajan, Arun. “The Sharing Economy, Market Economies, and Gift Economies.” The Sharing Economy: The End of Employment and the Rise of Crowd-Based Capitalism, The MIT Press, 2016, pp. 23–46, JSTOR j.ctt1c2cqh3.5.
• Tanzi, V. (2011). Government versus Markets: The Changing Economic Role of the State. Cambridge University Press. ISBN 978-1139499736.
• Temin, Peter. “The Labor Market.” The Roman Market Economy, Princeton University Press, 2013, pp. 114–138, JSTOR j.ctt1r2g35.11.
• Tomlinson, Jim. “The Failures of Neoliberalism in Britain since the 1970s: The Limits on ‘Market Forces’ in a Deindustrialising Economy and a ‘New Speenhamland.’” The Neoliberal Age?: Britain since the 1970s, edited by Aled Davies et al., UCL Press, 2021, pp. 94–111, JSTOR j.ctv1smjwgq.12.
• Ulrich, P. and Fearns, J. (2010). Integrative Economic Ethics: Foundations of a Civilized Market Economy. Cambridge University Press. ISBN 978-0521172424. Archived from the original on 2024-02-08. Retrieved 2022-03-11.{{cite book}}: CS1 maint: multiple names: authors list (link)
• von Stackelberg, H. and Von, S.H. and Peacock, A.T. (1952). The Theory of the Market Economy. Oxford University Press. LCCN 52004949. Archived from the original on 2024-02-08. Retrieved 2022-03-11.{{cite book}}: CS1 maint: multiple names: authors list (link)
• Weiss, Hadas. “Capital's Fidelity: Financialization in the German Social Market Economy.” Financialization: Relational Approaches, edited by Chris Hann and Don Kalb, 1st ed., vol. 6, Berghahn Books, 2020, pp. 177–195, doi:10.2307/j.ctv21hrft2.12.
• Widerquist, Karl and Grant S. McCall. “The Negative Freedom Argument for the Market Economy.” The Prehistory of Private Property: Implications for Modern Political Theory, Edinburgh University Press, 2021, pp. 79–99, JSTOR 10.3366/j.ctv1hm8h0j.9.
• Wolf, M. (2005). Why Globalization Works. Yale University Press. ISBN 978-0300251739. Archived from the original on 2024-02-08. Retrieved 2022-03-11.

• Yeazell, S.C. (2018). Lawsuits in a Market Economy: The Evolution of Civil Litigation. University of Chicago Press. ISBN 978-0226546421. Archived from the original on 2024-02-08. Retrieved 2022-03-11.
• Zakim, M. (2018). Accounting for Capitalism: The World the Clerk Made. University of Chicago Press. ISBN 978-0226545899. LCCN 2017035753. Archived from the original on 2024-02-08. Retrieved 2022-03-11.

External links

• Media related to Market economy at Wikimedia Commons
• Market Systems at Encyclopædia Britannica Online.

• Capitalism
• Classical liberalism
• Economic ideologies
• Economic liberalism
• Economic systems
• Market (economics)
• Market socialism