Lindblom - The Market System - Afghan Journalists' Committee

Market-System Efficiency 145productivity. More than the softened quid pro quo of thewelfare state? As noted in Chapter 8, the empirical evidencedoes not say so. It is closer to denying than affirmingthe doctrine.In several familiar distinctive ways, the market systemmotivates millions of people to become entrepreneurs. Itmotivates them to accept the challenges, bear the risks, anticipatethe gains, suffer the losses—and bring to the societythe great benefits of entrepreneurship. For one, themarket system multiplies and spreads opportunities for innovation;they are not limited to a few in a hierarchicaltable of organization, as in a planning system. For each ofcountless entrepreneurs, there is no restricted list of opportunities,no gatekeeper, no supervising committee that dolesout opportunities, as in communist systems. And once embarkedon a venture, there is no restricted list of persons orother enterprises whose consent or cooperation is required.An entrepreneur who cannot find a needed supply from anexpected source finds alternative sources. While a hierarchicalcentral planning system sets above every enterprise apossible veto at each of every higher level, in a market systemalmost no such superior authority exists. To accomplisha goal, a manager in a centralist system walks a prescribedpath given by the table of organization of a hierarchy.In the market system, an entrepreneur can try dozens orhundreds of paths. And of course the entrepreneur also ismotivated by the unhappy contingency that both suppliersand customers can leave if dissatisfied.Speed and flexibility of action, wide dispersion of opportunitiesfor entrepreneurship, and a multiplicity of paths toexplore make for powerful entrepreneurial incentives.These incentives stimulate a proliferation of initiatives—new enterprises, new goods and services, and new technolo-