SERBEST PİYASA EKONOMİSİ VE `İKTİSADİ GÜÇ`

Authors : Erol KATIRCIOĞLU

Pages : 167-186

View : 20 | Download : 14

Publication Date : 1999-12-25

Article Type : Research Paper

Abstract :Free market system in the Liberal Economic paradigm means that when each individual acts in his or her self-interest , the welfare of society is automatically assured. This is so called ` invisible hand ` of Adam Smith which insures the social welfare , even though individuals seek their own interests . In order to have such a system , one has to assume : 1- large number of firms which produce homegenous products , 2- free entry and exit i n the markets . Yet , these assumptions also mean that there would be no ` economic power ` of any individual actors . The reason is obvious : the first assumption implies that no firm has any power to influence the market conditions in which it operates , the second , if any one of them got such power , it can not carry out too long because  of  competit i on which comes from new firms entering freely into the market. Therefore , i n order to teor i ze an ` ideal` economic system , the Liberal paradigm tries to exclude the ` economic power ` from the economic analyses and many unsettled discussions in today ` s economic issues are in someway related to this effort. 
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