Markets and Power: The 21st Century Command EconomyIn what ways do the actions and economic behavior of today's multinational corporations resemble the functioning and processes of the old command economics of the Soviet Union? By ignoring questions about power relations in markets, mainstream neoclassically-oriented economists conclude that there are no significant power structures operating in market systems to control allocation and distribution. This book argues to the contrary that there are fundamental and systemic power structures - monopoly, access to information or finance, employer power, etc. - at work in market economies, which affects their ability to achieve real "competition" in much the same way as state-controlled, command economies hinder business activities. Thus, for example, the biggest firms at the hubs of financial "networks" wield a kind of "shaping power" upon large numbers of relatively autonomous firms, not only upon those that belong to the networks but also on the many firms outside them that are also affected. |
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activities actually advertising alternatives atomistic benefits business networks buyers capital capitalist firms capitalist market systems changes chapter Charles Perrow command competitive concentration concept of power conglomerate constraints contestable markets corporate costs course critical decision democracy democratic firms dominant economic inequality effect employers enterprise equal example exercise exist exploitation firm's greater income and wealth increasing individual industry influence insofar institutions integration investment involved kind labor income labor markets labor unions larger latter least mainstream economics mainstream economists major managers market societies mass media merely monopoly monopsony neoclassical neoclassical economics networks nomic oligopolies organization owners ownership parents Participatory Economics people's political power relationships power structures problem production profit purchasing power relations Samuel Bowles scale economies sector social power subordinate suppliers theory things threat tion U.S. Census Bureau unemployment unequal union wage workers workplace democracy X-inefficiency