Markets & Competition

Both personally and professionally I love markets. As an economist, I marvel at what the market can do. As a consumer, I am grateful for what it brings to life. It is one of the most significant inventions of humanity. Although it is an old idea, it makes the modern world possible. It is the great coordinating mechanism that creates order without orders, or “spontaneous order.” Markets enable cooperation between strangers, each of whom is motivated by self-interest (which is not the same as selfish interest) but is a necessary part of an emergent order that, in the words of Adam Ferguson, “is the result of human action, but not the execution of any human design.” Markets enable cooperation as mentioned before but their power is a consequence of competition among market participants. Let me tell you a few simple stories.
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