Adam Smith noted that there are some requirements for a free market to work.
Both buyers and sellers must have good information, there must be free movement of capital and labor, there must be multiple buyers and sellers of the product and there must be close substitutes for the product.
There are probably more that I don't remember.
Some markets never have all these characteristics, some don't have them because of regulatory capture, and therefore don't work well. Healthcare in the USA is a good example.
Great post.
Adam Smith noted that there are some requirements for a free market to work.
Both buyers and sellers must have good information, there must be free movement of capital and labor, there must be multiple buyers and sellers of the product and there must be close substitutes for the product.
There are probably more that I don't remember.
Some markets never have all these characteristics, some don't have them because of regulatory capture, and therefore don't work well. Healthcare in the USA is a good example.