Quarterly Journal of Austrian Economics

Facebook icon
LinkedIn icon
Twitter icon
A
A
Home | Mises Library | If a Pure Market Economy Is So Good, Why Doesn't It Exist? The Importance of Changing Preferences Versus Incentives in Social Change

If a Pure Market Economy Is So Good, Why Doesn't It Exist? The Importance of Changing Preferences Versus Incentives in Social Change

  • The Quarterly Journal of Austrian Economics
0 Views

Tags Political Theory

07/30/2014Edward StringhamJeffrey Rogers Hummel

Volume 13, Number 2 (Summer 2010)

 

Many economists argue that a pure market economy cannot come about because people will always have incentives to use coercion (Cowen and Sutter, 2005; Holcombe, 2004). We maintain that these economists leave out an important factor in social change. Change can come about by altering incentives or preferences, but since most neoclassical economists ignore changing preferences, they too quickly conclude that change is impossible. History shows that social change based on changes in preferences is common. By recognizing that preferences need not be constant, political economists can say much more about changing the world.

Cite This Article

Stringham, Edward P., and Jeffrey Rogers Hummel. "If a Pure Market Economy Is So Good, Why Doesn't It Exist? The Importance of Changing Preferences Versus Incentives in Social Change." The Quarterly Journal of Austrian Economics 13, No. 2 (Summer 2010): 31–52.

Shield icon interview