Lindblom - The Market System - Afghan Journalists' Committee

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What Efficiency Requires 139corps of rulers who do not care what their subjects wish orvalue and are willing to compel rather than make use of voluntaryinteractions, efficiency prices, so called, do not representthe relevant values, and rulers would be efficient todisregard them.
10Market-System EfficiencyIn the real world, how are efficiency prices established?Strictly speaking, they are only approximated. How approximated?By interchanges in markets in which, as in thegame in the gym, participants can endlessly engage in favorableexchanges. As in the game, it is required that thepresence of many buyers and sellers constrains monopolyand that no one has the power to fix prices—that is, governmentdesists on the whole from price fixing. To the degreethat these conditions are met, market systems give rise toand make use of efficiency prices.That is a core claim for market-system efficiency: efficiencyrequires efficiency prices, and market systems establishthem. The brevity with which I have just put it shouldnot detract from its fundamental significance.This first great and distinctive claim to efficiency ismade for all market-system choices where efficiency pricesprevail. It is a claim made both for consumer choices and forentrepreneurial choices about what to produce and of whatquality and with what inputs. It is also made for entrepreneurialchoices on technology and capital investment.Andrew Carnegie’s legendary entrepreneurship is an exampleof how capital is accumulated and new technologiesare introduced in a market system, both hinging on the efficientchoices that efficient prices make possible. “One ofthe chief sources of success in manufacturing,” he wrote,“is the introduction and strict maintenance of a perfect systemof accounting, so that responsibility for money or ma-
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1Market System AscendantThe massive
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Market System Ascendant 3abruptly r
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Market System Ascendant 5other meth
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Market System Ascendant 7obstructio
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Market System Ascendant 9seas marke
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Market System Ascendant 11Yet it mi
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Market System Ascendant 13in politi
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Market System Ascendant 15But what
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2Society’s CoordinationHaving pre
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Society’s Coordination 21one adul
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Society’s Coordination 23taining
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Society’s Coordination 25facing a
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Society’s Coordination 27dination
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Society’s Coordination 29it is no
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Society’s Coordination 31to coope
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Society’s Coordination 33straint.
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3Market-System CoordinationThe mark
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Market-System Coordination 37forgot
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Market-System Coordination 39Take s
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Market-System Coordination 41linked
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Market-System Coordination 43induce
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Market-System Coordination 45under
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Market-System Coordination 47for co
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Market-System Coordination 49Diffus
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Market-System Coordination 51Black
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Bones Beneath Flesh 532. To broad r
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Bones Beneath Flesh 55giving—unli
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Bones Beneath Flesh 57either for an
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Bones Beneath Flesh 59interchange.
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5Enterprise and CorporationIn marke
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Enterprise and Corporation 63“rel
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Enterprise and Corporation 65call m
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Enterprise and Corporation 67subscr
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Enterprise and Corporation 69lenge
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Enterprise and Corporation 71invest
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Enterprise and Corporation 73count
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Enterprise and Corporation 75and so
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Enterprise and Corporation 77of by
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Enterprise and Corporation 79fails,
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Enterprise and Corporation 81Retail
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Enterprise and Corporation 83most,
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Maximum Reach 85other, family anoth
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Maximum Reach 87pursuit of nonmater
Page 98 and 99: Maximum Reach 89Another circular in
Page 100 and 101: Maximum Reach 91Let us look at each
Page 102 and 103: Maximum Reach 93Some forms of monop
Page 104 and 105: Maximum Reach 95task of coordinatio
Page 106 and 107: 7Chosen DomainWisely or foolishly,
Page 108 and 109: Chosen Domain 99uted freely rather
Page 110 and 111: Chosen Domain 101trol of the volume
Page 112 and 113: Chosen Domain 103objects, although
Page 114 and 115: Chosen Domain 105the larger ones, m
Page 116: Chosen Domain 107us well understand
Page 120 and 121: 8Quid Pro QuoThe market system work
Page 122 and 123: Quid Pro Quo 113some do not? Why no
Page 124 and 125: Quid Pro Quo 115I see the visitor t
Page 126 and 127: Quid Pro Quo 117centives require so
Page 128 and 129: Quid Pro Quo 119£35 per hour. Ten
Page 130 and 131: Quid Pro Quo 121the rule: adults wi
Page 132 and 133: 9What Efficiency RequiresDespite wh
Page 134 and 135: What Efficiency Requires 125Suppose
Page 136 and 137: What Efficiency Requires 127values
Page 138 and 139: What Efficiency Requires 129The bur
Page 140 and 141: What Efficiency Requires 131society
Page 142 and 143: What Efficiency Requires 133lular p
Page 144 and 145: What Efficiency Requires 135most of
Page 146 and 147: What Efficiency Requires 137The con
Page 150 and 151: Market-System Efficiency 141terials
Page 152 and 153: Market-System Efficiency 143Motivat
Page 154 and 155: Market-System Efficiency 145product
Page 156 and 157: 11InefficienciesSome attributes of
Page 158 and 159: Inefficiencies 149Enterprises impos
Page 160 and 161: Inefficiencies 151transferable fish
Page 162 and 163: Inefficiencies 153At first glance,
Page 164 and 165: Inefficiencies 155ants only under l
Page 166 and 167: Inefficiencies 157quently, most ent
Page 168 and 169: Inefficiencies 159flation. Such par
Page 170 and 171: Inefficiencies 161petent government
Page 172 and 173: Inefficiencies 163taxes, transfer p
Page 174 and 175: Inefficiencies 165ulation. It also
Page 176 and 177: Too Little,Too Late 167ute income s
Page 178 and 179: Too Little,Too Late 169sion of the
Page 180 and 181: Too Little,Too Late 171other societ
Page 182 and 183: Too Little,Too Late 173In the game,
Page 184 and 185: Too Little,Too Late 175in its own p
Page 186 and 187: Too Little,Too Late 177moves not to
Page 188 and 189: Freedom? 179cloudland of abstractio
Page 190 and 191: Freedom? 181The several advantages
Page 192 and 193: Freedom? 183(consumer sovereignty).
Page 194 and 195: Freedom? 185one proposes not to use
Page 196 and 197: Freedom? 187is simply a fact of lif
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Freedom? 189their alternatives and
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Freedom? 191I individually may be f
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14Personality and CultureI do not h
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Personality and Culture 195tion and
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Personality and Culture 197munity o
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Personality and Culture 199frozen a
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Personality and Culture 201the rule
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Personality and Culture 203ties. A
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Personality and Culture 205quacy of
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Personality and Culture 207ing the
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Personality and Culture 209efits fo
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Personality and Culture 211source o
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Persuading the Masses 213lions. Wit
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Persuading the Masses 215entreprene
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Persuading the Masses 217problem is
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Persuading the Masses 219As early a
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Persuading the Masses 221also might
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Persuading the Masses 223fenses of
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Persuading the Masses 225as are per
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Necessary to Democracy? 227cratic c
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Necessary to Democracy? 229market s
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Necessary to Democracy? 231right, t
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Necessary to Democracy? 233fend its
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Necessary to Democracy? 235The mark
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Enterprise Obstructions to Democrac
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P A R TIIIThinking About Choices
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254 Thinking About Choicesminate th
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256 Thinking About ChoicesThe welfa
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258 Thinking About Choicesprice set
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260 Thinking About Choicespositive
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262 Thinking About Choicessumer spe
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264 Thinking About ChoicesIf we con
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266 Thinking About Choicesspecial a
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268 Thinking About Choicespolicy. A
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270 Thinking About Choicesacknowled
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272 Thinking About ChoicesSequentia
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274 Thinking About Choicesman being
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276 Thinking About Choicesbedrock c
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NotesChapter 1. Market System Ascen
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Notes 281low for the inescapable (a
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Notes 283Chapter 6. Maximum DomainR
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Notes 285for mutually advantageous
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Notes 287On the alleged decline of
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Notes 289Chapter 17. Enterprise Obs
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IndexAristotle, 28, 200, 204Assault
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Index 29324; conventional efficienc
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Index 295Peacekeeping: as coordinat
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Lindblom - The Market System - Afghan Journalists' Committee

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