Market Mechanism Quotes

Market fundamentalists recognize that the role of the state in the economy is always disruptive, inefficient, and generally has negative connotations. This leads them to believe that the market mechanism can take care of all the problems.

The bitcoin protocol is about mining bitcoin, not pricing bitcoin. There is nothing in the protocol about establishing a market price for bitcoin; you need a market for that, but what if all the exchange markets are shut down?

Stock market corrections, although painful at the time, are actually a very healthy part of the whole mechanism, because there are always speculative excesses that develop, particularly during the long bull market.

The best way to deal with any economic problem is to let the market work it through.

Big Water makes an argument straight out of Economics 101. The best way to deliver water to people's homes efficiently, the water barons argue, is to put the process in the hands of the market. If water is scarce, then raise the price - let the law of supply and demand take over!

With taxes, if they aren't working right, we can change them with a stroke of the pen. It's basically a market-type mechanism. People make their own choices. You run the taxes, and you get the results.

When companies fail, shareholders bear the losses. It's just the way our system is supposed to work.

In a capitalist democracy there are essentially two methods by which social choices can be made: voting, typically used to make ‘political’ decisions, and the market mechanism, typically used to make ‘economic’ decisions.

You can auction coal blocks. All natural resources of government should be auctioned.

The market steers the capitalistic economy. It directs each individual's activities into those channels in which he best serves the wants of his fellow-men. The market alone puts the whole social system of private ownership of the means of production and free enterprise in order and provides it with sense and meaning.

The thing about markets, and I think the thing people don't understand about that, is markets are not kind, but they're very efficient. So when the marketplace determines an inefficiency in the system, it corrects that, and a market system that's left alone will reward good behavior and punish bad behavior.

Market design is about understanding the details of markets in sufficient detail so that we can help fix them when they are broken.

So everybody has some information. The function of the markets is to aggregate that information, evaluate it, and get it incorporated into prices.

If I buy a car, I use the car, you don't, and the market for cars works pretty well. But there are many other sorts of goods, often very important goods, which are not provided well through the market. Often, these go under the heading of public goods.

"Cap and trade" is just about the most effective tool for controlling most economic activity short of openly declaring ourselves a communist nation and it's a radical environmentalist's dream come true.

We are so accustomed to the miracle of private enterprise that we habitually take it for granted. But how does private industry solve the incredibly complex problem of turning out tens of thousands of different goods and services in the proportions in which they are wanted by the public? ... It solves these problems through the institutions of private property, competition, the free market, and the existence of money - through the interrelations of supply and demand, costs and prices, profits and losses.

There exists no third principle for the organisation of the economics process which can be rationally chosen to achieve any desirable ends, in addition to either a functioning market in which nobody can conclusively determine how well-off particular groups or individuals will be, or a central direction where a group organised for power determines it.

It is the job of the market to turn the base material of our emotions into gold.

The European model is, first, a social and economic system founded on the role of the market, for no computer in the world can process information better than the market.

Smith, as we have said, was not the proponent of any one class. He was a slave to his system. His whole economic philosophy stemmed from his unquestioning faith in the ability of the market to guide the system to its point of highest return. The market — that wonderful social machine — would take care of society's needs if it was left alone. "Consumption is the sole end and purpose of all production," he wrote.

The question is really how do we think seriously about this mechanism called a market. It ought to be determining not values but prices.

In business, the market gives you feedback in real time. Your sales figures tell you what's working, what isn't, and how you need to change. If you don't listen to the feedback, you go belly up. In philanthropy, there is no market.

But the system of prices ruling the market not only transmits information in the light of which economic agents can mutually adjust their actions, it also provides them with an incentive to exercise economy in terms of money.

Markets are the best way to allocate resources.

In other words, the market is not a weighing machine, on which the value of each issue is recorded by an exact and impersonal mechanism, in accordance with its specific qualities. Rather should we say that the market is a voting machine, whereon countless individuals register choices which are the product partly of reason and partly of emotion.