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Towards a Well-functioning Economy
The Evolution of Economic Systems and Decision-making
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This volume examines the economy as an evolving entity and develops a new and coherent approach to the classification of economic systems. It demonstrates how the components of a decision making system and the properties of a functioning economy are intrinsically linked. A well-functioning economy is shown to depend chiefly on "correct" decisions. These in turn depend on an efficient decision-making system, an appropriate mix of markets, organizations and governments, and an optimal combination of the four enforcing mechanisms of a modern economic system: custom, command, competition and cooperation. Although this book is primarily about economics, non-economic considerations, including political and ethical, are brought into the analysis. The most important decisions in life include choices between economic and non-economic issues. Hence, one of the aims of this book is to provide a conceptual framework to cope with these choices.
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