* "But a contract-governed market isn't any more "free" than a regulated market"*
Maybe what we understand by "free" is different? If I evaluate the risk rewards and decide I want to get dentures for 1 dollar from the "pavement-dentist" and the regulators do not prevent the transaction, I consider that a free market transaction. If the regulated market prevents that transaction, I'm still without front teeth. How can you claim the contract-governed market isn't more "free" than the regulated market? In my understanding of "free" the contract-governed market is more free; I end up with dentures and the enterprising man makes a profit. In the free market case the outcome is win-win and the regulated market case lose-lose. What do I miss about your point? Maybe if you explain to me how you understand "free" we can sing from the same sheet. On Mon, 26 Apr 2021 at 23:11, uǝlƃ ↙↙↙ <[email protected]> wrote: > OK. But a contract-governed market isn't any more "free" than a regulated > market, neither of which are maximally efficient. And in the context where > all the negotiating power lies with one side or the other, those contracts > may end up even *more* restrictive than government regulations. (E.g. if > all the multinational corporations get together and put the same > boilerplate in their contracts, like routing all breach claims through > arbitrage by an AI in St Petersburg.) But even if it's not, i.e. somehow > where we regulate the market so that only symmetric contracts stand, if any > 1 party entangles, via contract, with multiple other parties without > normalizing all their contracts, the mesh of contracts will eventually "gum > up". (Anyone who's signed more than 1 non-compete NDA will know what that > looks like.) Another (non-free) restriction could be to sunset all > contracts at, say, 1 year. So, every entrepreneur has to go back through > their mesh of NDAs and re-negotiate/re-sign them every year. But 1 year > contracts won't work for everything. So, there'd necessarily be a gumming > up around how long the mesh of contracts lasted. > > All of this works directly against the "freedom" (including transparency > and efficiency) of the market. So, contract markets are not free markets at > all. Counterintuitively, a well-regulated market can be freer, more > efficient, than a contract market. But if the regulators could *reduce* all > the complexities of any contract into merit/outcome (instead of price), > then that reductive measure could be multimodal (which price can't ... > which leads to financial instruments). It might also be multidimensional. > Outcome could be a vector of both some variable like [non]responder and > time. > > There'd have to be rules about concreteness of outcome-compliance, of > course. E.g. if side effects from toxic false teeth you bought on the > street corner kill you from sepsis, you couldn't claim the outcome was met > just because you no longer need false teeth (because you're dead). But if > the outcome were <no longer need false teeth, still alive after 2 years>, > then the teeth vendor could get paid. > > In effect, this is what we have already, except "outcome" is diffused > through the multifarious jurisdictions and power dynamics of who can, and > the RoI of, hiring a team of lawyers. If the modes and reduction to outcome > were more algorithmic, it might make the markets more efficient than they > can be with asymmetric contracts or deep-canon centralized regulation. > > > On 4/26/21 1:37 PM, Pieter Steenekamp wrote: > > No, a free market system is not limited to outcome based contracts. Free > market is allowing two (or more) parties to have a valid contract on the > terms and conditions both (or all) parties agree on. A patient and an > oncologist may agree on a contract where the patient pays for the effort > and not the outcome, that could still be 100% within the free market > system. This is of course provided the authorities don't have regulations > stipulating the legal bounds of the contract. > > For example, in Cape Town there are many poor people without front > teeth. A while ago an enterprising man, without any medical qualifications, > set up shop on a pavement to do false teeth at an order of magnitude lower > price than a qualified dentist. He was shut down very quickly. In a free > market system he would have been allowed to provide dentures resulting in > happy poor people with front teeth who cannot afford a traditional dentist > and an enterprising man making good money. With the regulations that > protect people we now have an unemployed poor enterprising man and many > people who are still without front teeth. > > > > On Mon, 26 Apr 2021 at 19:49, uǝlƃ ↙↙↙ <[email protected] <mailto: > [email protected]>> wrote: > > > > Should everyone be paid based on merit/outcome? E.g. I go to the > oncologist because cytometry tests show I have stage 4 lymphoma. We go > through a years long treatment, at the end of which I may be a responder or > a non-responder. A free marketeer *should* argue that the oncologist > shouldn't be paid until an assessment of response can be made. > Nonresponders shouldn't have to pay (or get a refund like you would buying, > say, a blender off the internet). Responders have to foot the bill for the > whole enterprise. > > > > Obviously, there are plenty of other options, all of which are > negotiated asymmetrically between the chronically fatigued cancer patient > and the battery of multinational corporate lawyers driving Teslas. But the > gist of the market is merit/outcome based. Right? > > > -- > ↙↙↙ uǝlƃ > - .... . -..-. . -. -.. -..-. .. ... -..-. .... . .-. . > FRIAM Applied Complexity Group listserv > Zoom Fridays 9:30a-12p Mtn GMT-6 bit.ly/virtualfriam > un/subscribe http://redfish.com/mailman/listinfo/friam_redfish.com > FRIAM-COMIC http://friam-comic.blogspot.com/ > archives: http://friam.471366.n2.nabble.com/ >
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