ABSTRACT
Economists are well aware of the positive functions of the market in promoting efficiency and consumer choice. The market system is based on decentralized decision making, with consumers seeking out the suppliers that will offer them the best deal and suppliers competing among themselves for consumers’ dollars. Suppliers need to minimize costs in order to stay competitive (“production efficiency”). They also have to offer products that meet the demands of the market (“consumers’ sovereignty”). At the same time, consumers compete among themselves for the available services. If they are keen on a product, they pay more, thus preempting those other consumers who are less willing to pay for the product. As a result, produced goods will go to those who value them the most (“consumption efficiency”).
