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Omschrijving

Market process theory illustrates how the market is the most effective institution for overcoming the knowledge problem. Specifically, the institutional characteristics of private property, monetary prices, and the disciplining mechanisms of profit and loss, guide actors to utilize knowledge dispersed among society, to allocate resources effectively, and to adjust their behavior when errors occur to provide valuable goods and services to society.

The chapters in this manuscript explore, through applications to issues within the United States and internationally, contemporary issues in public policy through the theoretical framework of knowledge problems and market process economics. Utilizing this approach, as well as other fundamental insights from economics, these chapters aim to illustrate how individuals in society address pressing public issues, the problems faced by policymakers, and the potential for novel solutions to policy challenges. Authored by individuals from a variety of disciplines with interests in public policy, this work includes discussions of education, child welfare, urban planning, and U.S. healthcare policy, as well as topics in e-commerce, the Global War on Terror, international trade, and economic development.