Lindblom - The Market System - Afghan Journalists' Committee

Maximum Reach 95task of coordination from the authority of the state to theirown collective market efforts.But then comes the notorious free rider. A number ofpersons wish to join in obtaining a service or good that themarket can provide except for one obstacle. The obstacle isthat performance or object is of a kind that cannot be restrictedto those who pay but will be available as well tothose who do not pay. Even if all the residents of an urbanarea are willing to pay for a tree-planting program, the projectis likely to fail if many of them, knowing that they canenjoy the trees even if they fail to pay their share, refuse topay. Payments have to be compelled, as through taxes. Themarket system does not work.In short, what is decisive for whether the market systemcan or cannot accomplish a collective project is not that it isor is not collective but that it does or does not require compulsion.So we are left with our three requirements for admittingan object or performance into the market system: it must besubject to an on-off switch, it must be scarce, and it must respondvoluntarily to offers of benefit. Within these limitsthe maximum scope of the market system remains enormous.And, once again, you will not gain any insight intomarket-system scope by postulating something called theeconomy, which then defines its scope. Think society, noteconomy.A cloud in the sky does not enter into the market system.But if it can be seeded to produce rain (the on-offswitch), if more farmers want its rains than can be accommodated(its waters are scarce), and if technicians in airplanesare willing to seed the cloud in return for benefits,seeding the cloud becomes part of market-system activity.A mound of unwanted ore does not enter into the market