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Let's look at this:
the default case is what's easiest to talk about with the traditional toolkit, not what's normal.
the default market in the marginalist economics tradition is the competitive auction market, so a competitive auction market can be assumed by default in a discussion without requiring a defense, but any other market requires defense.
Garbage in, garbage out.

However, this explains why economists attempt to convince politicians to turn everything into competitive auction markets. Energy liberalisation, emissions trading, anyone?

When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. — John M. Keynes

by Migeru (migeru at eurotrib dot com) on Mon Jun 23rd, 2008 at 09:51:55 AM EST
[ Parent ]
Well, as far as I can work out, emissions trading was invented by Goldman Sachs as a new market for them to skim commission off...
by Metatone (metatone [a|t] gmail (dot) com) on Mon Jun 23rd, 2008 at 11:24:39 AM EST
[ Parent ]
Actual emissions trading, perhaps, but the theoretical concept has been in the literature for a while ... while the purpose of the marginalist economic tradition in the hands of your Goldman Sach's of the world is mostly to rationalize a public benefit for the accumulation of wealth, if it can be used to give posh sounding cover for a new financial product, that's good too.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
by BruceMcF (agila61 at netscape dot net) on Mon Jun 23rd, 2008 at 01:08:53 PM EST
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