chapter  1
9 Pages

Markets

To start with a point already made, the market in its pure fonn is inherently transnational. In axiomatic analysis, indeed, "economy" is defmed in tenns of three entities: "elementary intervals," called "dates," that extend all over the future; "elementary regions," called "locations," that may appear anywhere in space; and "agents," each of whom is characterized partly by the limitations on his choice, partly by his choice criterion, with the choices extending all over the vast range of qualitatively different economic activities. I

What I call "penetration" proceeds roughly along the line from isolated, noninstitutionalized acts of barter

to market systems that govern also the allocation and the earnings of capital and labor,

to policies being traded among some members of parliament just as any other goods,2

to the view that "the economic approach [to deciding what to do] is a comprehensive one that is applicable to all human behavior'?