<div class="gmail_quote">On 27 February 2012 15:58, Mirco Romanato <span dir="ltr"><<a href="mailto:painlord2k@libero.it">painlord2k@libero.it</a>></span> wrote:<br><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">
The trust in free markets and free competition is not like faith in<br>
government or gods. The trust in free market is based on the assumption<br>
that people do what they think good for themselves and, without<br>
violence, they can not damage others.<br>
<br>
Market work "as there is" an Invisible Hand managing them. There is no<br>
Invisible Hand, but from naive external observers it could appear so.<br clear="all"></blockquote></div><br>Yes, some as evolution. But evolution *does* involve dead ends. <br><br>And similarly, the fact that people do what they think good for themselves - or even what they are compelled to do lest they be simply eliminated by competition - does not prevent in the least the fact that the end result may well be catastrophic, eg, out of "free riders" or "unravelling" effects.<br>
<br>The possibility of such outcomes is entirely consistent with game theory or with classical economic theory.<br><br>The best we can do is to make players to re-assess their priorities so that their economic behaviour is accordingly altered.<br>
<br>-- <br>Stefano Vaj<br>