Do you believe in market failure?
I do.
What is “market failure”?
I believe in human error.
No.
What has the market, as a single entity, failed at in anything?
What has the market, as made up of various individuals, failed at in providing at which they were not superseded by other individuals who were superior in providing a good or service?
if by ‘market failure’ you mean outcomes that fall short of some utopian ideal; then I do too.
new question: do you believe that there is a superior institution than the market?
I don’t
See! This sort of intellectual charlatanry is what made me so distrustful of Austrian economics, in general. Your ideology trumps your economics qua science.
The prisoner’s dilemma. Heard of it?
Watch David Friedman school you on market failure: http://www.youtube.com/watch?v=sb5hr-f3Tfg.
nirgrahamUK, I, likewise, believe that government failure imposes greater costs than market failure.
given your revulsion to the idea that the market is ‘the best solution’ and your reverence for David Friedman, how do you explain the fact that David Friedman is not a minarchist?
Seriously?
One might ask how the superior state of affairs that yet remains within the realms of possibility can be called a ‘failure’ from the standpoint of a pragmatic analysis. its a semantic issue.
Huh? My “revulsion to the idea that the market is the ‘best solution’”? When did I ever say that? I’m an anarcho-capitalist.
Reverence? No. Just respect.
Why would he be a minarchist? The wastefulness and inefficiency of government planning is no remedy to market failure.
Oh you mean like when respect for property rights has worse consequences than under some other system? Sure.
Huh? My “revulsion to the idea that the market is the ‘best solution’”? When did I ever say that? I’m an anarcho-capitalist.
Im making the point that it is a semantic issue. do you support ‘failure’ or not ?
It fails according to what could have been. The possibility is not unrealizable.
I would call it “medical failure,” perhaps, when a child dies from an illness that could have been treated by penicillin. There is no utopian ideal being praised here; just a possible alternative.
Yes. It utterly fails in providing me whatever I want whenever I want it, every single day.
Neoclassical, you honestly Mises scholars never heard about a Prisonner Dilemma?
PD scenarios require coordination to get solved, if they occur in the market it is due to mismanagement, if it is profitable to manage better eventually the market will.
Now give me a market failure example that’s not A. Human error/buyer’s remorse and B. Lack of coordination.
It fails according to what could have been.
what could have been given the constraints of reality or what could have been given a different ‘superior’ institution ? or what could have been given a purely mental utopian dream?
What do you mean, “human error,” Consultant?
I am assuming that individual decision-making is rational.