Markets are institutions that exist to facilitate exchange, that is, they exist in order to reduce the cost of carrying out exchange transactions. In an economic theory which assumes that transaction costs are nonexistent. markets have no function to perform, and it seems perfectly reasonable to develop the theory of exchange by an elaborate analysis of individuals exchanging nuts for apples on the edge of the forest or some similar fanciful example. This analysis certainly shows why there is a gain from trade, but it fails to deal with the factors which determine how much trade there is or what goods are traded.
Ronald CoaseRelated topics
analysis carrying cost deal edge example exchange forest function gain goods nonexistent order reasonable reduce similar theory trade transaction nuts apples costsRelated quotes
Since only actions aimed at perceived benefit to others were, to Aristotle's mind, morally approved, actions solely for personal gain must be bad. That commercial considerations may not have affected the daily activities of most people does not mean however that over any prolonged period their very lives did not depend on the functioning of a trade that enabled them to buy essentials. That production for gain which Aristotle denounced as unnatural had -- long before his time -- already become the foundation of an extended order far transcending the known needs of other persons.
Friedrich Hayek
While we could study any of the world's dictators to see how they gained control over their people, Hitler is probably the best known and most well documented example. I believe his persecution of the Jews was Satan's trial run for the end time events coming upon us soon including the 3½ years of "great tribulation” (4D). Hitler's method of getting Germans to hate and then kill the Jews should be studied carefully. I am convinced similar methods will be used to bring persecution against any who will not go along with Satan's plans for his New World Order, especially Christians and anyone else who won't take the mark (Revelation 13-14).
Kent Hovind
Let there be no doubt that our present rate of inflation is the main cause of our economic difficulties. There never has been a more mistaken piece of economic analysis than the view that we should accept inflation to avoid unemployment. Inflation today, so far from being an alternative to unemployment, is its main cause. If our rate of cost increase is allowed to continue close to twice that of the average for the developed world it will increasingly price us out of world markets. Employers...will have to restrict their activities and still more their labour force in response to mounting and uncontainable wage and salary bills.
Roy Jenkins
I would suggest... the idea of a work which should have for its object the analytic examination of the development of our intellectual faculties for each age. Now, I have aimed to present, in the work here reproduced, only an essay, only a particular example, of such an analysis, "which tends to show that the maximum of energy of the passions occurs about the age of twenty-five." The minimum is not then determined; and even when it shall be, by a sufficient number of observations, one will no more be able to apply it to any given individual in particular, than one could make use of a table of mortality to determine the period of his decease.
Adolphe Quetelet
In this book I try to show how models of self-organization can be applied to many economic phenomena - how the principle of "order from instability," which explains the growth of hurricanes and embryos, can also explain the formation of cities and business cycles; how the principle of "order from random growth" can explain the strangely simple rules that describe the sizes of earth quakes, meteorites, and metropolitan areas. I believe that the ideas of self-organization theory can add substantially to our understanding of the economy; whatever their ultimate usefulness, these ideas are very exciting, and playing around with them is tremendous fun.
Paul Krugman
