Business 'rights' and free markets

[Jim Choate]

On Tue, 6 Nov 2001, Gabriel Rocha wrote:

> 		On Mon, Nov 05, at 07:44PM, Jim Choate wrote:
> | What does it take to create a 'free market'? Hayeks says 'perfect
> | competition'.
> 
> Here you go using a Good Name(tm) in vain...again.

No, you just don't want to admit you have no clue what Hayek was talking
about...

> | What is 'perfect competition'?
> 
> "Perfect Competition" is not an Austrian idea,

Where it came from is irrelevant.

> in fact, it is an idea that has been refuted by many Austrians in
> the past as it is not characteristic of the real world.

Hayek refutes it in Chapter 5 himself. Of course it doesn't apply to the
real world because you CAN'T create any of the three minimum conditions
necessary of a free market.

It's why Hayek also introduces the concept of 'imperfect competition'.

You didn't read (understand) Hayek, come on, admit it...

> | 3. Complete knowledge of the relevant factors on the part of all
> |    participants in the market."
> 
> "Complete Knowledge" is precisely what Hayek was refuting when he
> proclaimed the idea of local knowledge, since no one can know at all
> times what happens all around him, much less the next person.

But Hayek draws a distinction, which damns your argument because you
ignore it, between 'competition' and 'information'.

> | The reality is that Tim's believe that he can refuse to serve a customer
> | because they hold or perhaps practice some action that (while not
> | involving him or his property directly, only his apparently fragile
> | emotional ego) he finds offensive is within the bounds of free market
> | econoimics is just plain crap.
> 
> Tim's refusal to service whoever he wishes is directly related to
> the free market.

No, it is related to Tim applying his bigotry. In a free market a seller
has a limited number of factors they may consider. Cost to manufacture,
cost at sale, difference in those prices and whether the market level is
enough to stay in business. It's also worth noting that in regard to 'free
market' the 'perfect information' is related to the product and the price
in the market, not the seller or buyers personal beliefs or actions
outside of the economic exchange.

Please provide a quote from Hayek to support your claim of his meaning.

Quid pro quo.


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