Chapter 1: Reinventing the Bazaar (Questions)

Chris Monsour

Chuck Stull

Econ for Global Travelers

April 4, 2014

Reinventing the Bazaar (Questions 1-3)

1. McMillan states that autonomy, freedom, information, trust and competition are key in functioning marketplaces. McMillan says that "decision-making autonomy is key" in a healthy and functioning marketplace. He goes on to state that the freedom to choose what to buy without an authoritative power controlling the buyer and or seller is what defines a marketplace. In the context of the corporate marketplace involving the buying and selling of raw materials for instance, McMillan states that "it is a market economy because even these non market transactions take place within the context of markets." McMillan goes on to say that "nobody is in charge of a market," as well as stating that "free decision-making is key-it shapes and supports the process of transacting." Again, these ideas apply to the principal of freedom within the marketplace. McMillan stresses the importance of information in a marketplace by stressing that "a market works well only if information flows smoothly through it." He also states that "a market works well only if people can trust each other."

2. Flourishing markets have brought success and prosperity to people while failing markets have destroyed families, lives, and economies. Distrust in the marketplace will always be present mainly due to the track record it possesses. Even though a free market may exist in some places, not all are free enough to take advantage of it, especially those who suffer in poverty. People may distrust government control over economic decisions because as much as the government wants to speak on behalf of the people, the government cannot cover every individual need of a person within an economy. At the same time, many around the world witness their governments struggle to maintain healthy economies, even in the US! I support free markets and am against large government restrictions within them mainly for fiscal purposes.

3. Anti-trust laws encompassing acts such as monopolization, exclusive dealing, and predatory pricing allow for a more free and fair market environment that encourages ideas, structured risk, growth, and success. If two companies ran the world, chaos would surely ensue, much like in folk football when the strongest men controlled the field.