Postscript: The Use and Misuse of the Market

Abstract

In the first chapter we presented two objectives which society might have in allocating scarce resources between its members: those of efficiency and equity. In subsequent chapters we have discussed how market and non-market systems can be used to allocate resources in certain ‘problem’ areas, and whether their use can achieve an efficient and equitable allocation of resources in the area concerned. In these discussions, certain key issues have emerged repeatedly. Many of the difficulties involved in allocating resources within these areas have strong links with one another; indeed, many are simply aspects of the same conceptual problems. It is the purpose of this final chapter to try to isolate and to emphasise these links; and to draw out from the discussions some general lessons about different systems of resource allocation.