Laissez Faire, Free Market
Economy, Social Market Economy
Market economy is an economy in
which goods and services are freely exchanged without obstruction or regulation and where
decisions about production and consumption are made by many separate individuals each
seeking satisfaction of specific needs and desires.
Market economy is sometimes used
interchangeably with capitalist economy, but this is an error since a
cooperatively based economy could also be operated on market principles.
In market economy decisions
regarding investment, production and distribution are based on supply and demand where the
prices of goods and services are determined in a free price system.
Market economies may include
hypothetical laissez-faire, free market, regulated markets and interventionist
Existing market economies are
mixed economies as they include economic planning or state-directed activity.
Free market economy is almost
synonymous with Laissez-faire economy, that is, free market without economic intervention
and regulation by government. Free-market economy is often used synonymously with market
economy, but this does not preclude an economy from having socialist attributes. Free
market economy is the opposite of a controlled market economy.
In reality however, market
economies are regulated by societies and governments in many ways, not allowing full
self-regulation by market forces.
The Theory of the Market
Economy and the Social Foundations of Innovative Enterprise
William Lazonick, University of Massachusefts Lowell and INSEAD (The European Institute of
Business Administration) Economic and Industrial Democracy, Vol. 24, No.1, (2003)
Argues that the theory of the market economy as propounded by western economists is more a
hindrance than a help. The western economists who propound the theory of the market
economy lack a theory of economic development that can explain the successful growth of
the wealthy economies. In the absence of such a theory, `market' economists tend to see
developed markets in labour, capital and products as causes rather than consequences of
economic development. The 'market economy' is a real phenomenon with economic and
political advantages. To benefit from 'market economy', a society must put in place the
organizations and institutions that generate the innovative capabilities that make
possible the emergence of well functioning markets in capital, labour and products.
Market Economy and Consumer Rights: The Impact on Women's Everyday Lives and
Employment - Malgorzata Fuszara, Univ of Warsaw
Economic and Industrial Democracy, Vol. 15, No. 1, 75-87 (1994)
A free market as one of the elements of freedom, has changed everyday life in Poland. The
introduction of a market economy has changed women's life for the better for example as
consumers. The changes have also led to a deterioration of women's situation and status in
society, such as disproportional unemployment of women and loss of certain social
services. The changes have done away with the 'communist myth' of gender equality
regarding participation in politics, executive posts held by women or equal pay.
Ideological Basis of the Market Economy: Attitudes Toward Distribution Principles
and the Role of Government in Western and Eastern Germany - EDELTRAUD ROLLER -
Edeltraud Roller, Wissenschaftszentrum Berlin fr Sozialforschung. European Sociological
Market-economy structures in the former GDR raises the question to what degree a market
economy culture exists among East Germans, that is existence of orientations and
behavioural dispositions congruent with market-economy structures. Empirical analyses show
that immediately after unification the East Germans already supported the achievement
principle of the market economy to the same degree as West Germans. Analyses indicate that
the planned economy elements in this economic culture probably stem from system-internal
experiences and the market economy elements stem from system-external experiences.
Gender Mainstreaming and Gender Equality in the New (Market) Economy: An Analysis
of Contradictions - Diane Perrons, Social Politics: International Studies in
Gender, State & Society 2005
Studies have highlighted institutional barriers or resistances to gender mainstreaming.
Diane Perrons takes a different approach by developing a conceptualization of the new
economy that highlights the market tendency toward widening gender and class inequalities.
Effective gender mainstreaming would require a broader and more holistic conceptualization
of the economy in order to secure greater gender equality.
Eucken's 'Social Market Economy' and Its Test in Post-War West Germany
The Economist as Social Philosopher Developed Ideas That Parallelled Progressive
Thought in America - By Siegfried G. Karsten, American Journal of Economics
and Sociology, Volume 44 Issue 2
Walter Eucken's paradigm of a "Social Market
Economy" and "Ordnung" provides a framework for a functional
free-market mechanism, which accommodates development and change, assuring human dignity
and freedom, the cornerstones of the Kantian moral universe. Eucken places special
emphasis on the integration of economics with "order" and
"Justice." This "social market economy" would provide goods and
services efficiently and also eliminate poverty and the maldistribution of income and
Patterns of Transition from Plan to Market Martha de Melo, Cevdet Denizer,
and Alan Gelb
The transition from a planned economy to a market economy involves a complex process of
institutional, structural, and behavioral change. This article develops an index of
economic liberalization and analyzes its interaction with growth and inflation from data
of twenty-six transition countries for 198994.
Price-War Dynamics in a Free-Market Economy of Software Agents
Jeffrey O. Kephart, James E. Hanson, Jakka Sairamesh (IBM Thomas J. Watson Research
Envisages the evolution of the Internet into a free-market information economy in which
billions of software agents exchange a rich variety of information goods and services. The
ability of the free-market economy to adjudicate and satisfy the conflicting needs of
billions of human agents suggests it as a decentralized organizational principle for
billions of software agents. Is a free-market information economy capable of facilitating
the interactions of billions of software agents.
Incomes in Planned and a Market Economy: The Case of the German Democratic
Republic and the Former Federal Republic of Germany MARC SZYDLIK, Harvad,
William James Hall, Cambridge
European Sociological Review 10:199-217 1994
Examines the extents and determinants of earned income inequalities in the German
Democratic Republic and the former Federal Republic of Germany. Income
differences can be distinguished on the basis of individual and structural inequalities as
well as according to organizational and economic structures.
The market economy unchecked: Another version of fundamentalism? A polemical
tribute to Stafford Beer - Leonard A. - Kybernetes: The International Journal of
Systems & Cybernetics, Volume 33, Numbers 3-4, 2004
Market economy imposes constraints and makes demands that mirror the rigidity of
fundamentalist religions and that this makes answering one fundamentalism with another
Summary Report of the OECD Emerging Market Economy Forum on Electronic Commerce
The OECD Emerging Market Economy Forum on Electronic Commerce on the theme of electronic
commerce and the global digital economy. Among the emerging themes at that meeting was
recognition of differences in access between and within economies (known as the 'digital
divide') and the need for the OECD to build upon its outreach to non-member countries and
to all stakeholder communities. - oecd.org
The Economics and Politics of Transition to an Open Market Economy: Colombia -
Colombia was never a centralised communist state. It does share some of the
characteristics of the centralised socialist economies since the reins of power remained
in a small clique which denied access to other parts of the society. Reforms did take
place, but under a climate of resistance by vested interests and militancy on the part of
those who stand most to benefit from reform. Explains how these forces related to each
other and how the conflicts were resolved or not. - oecd.org
Market economy, health economy? - De Wever A., Faculte de Medecine, Ecole de Sante
Publique, Ecole de Commerce Solvay, Institut de Pharmacie, Laboratoire d'Economie de la
The economical science will gradually introduce the health economy to seek for a better
distribution between public and private means to do more and better for the public health.
The market economy is different from the state economy, principally conducted by the
supply and demand law. The healthcare market put also a health supply and demand forward
but not with the same values. The the consumer's behaviour are different in this
particular market which quickly evolves and progressively goes closer to the market
The transition from Soviet system to market economy as a cause of instability in
the Estonian coastal fisheries sector - Markus Vetemaa, Redik Eschbaum & Toomas Saat -
University of Tartu
This study analyzes how overall changes in political and economic life during the last
decade have affected the Estonian coastal fishery of the Baltic Sea.