Markets Fail

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 Adjunct professor Arnold Kling offered a terser précis of the GMU way. “My simple way of describing it is that at Chicago they say, ‘Markets work; let’s use markets.’ At Harvard and MIT they say, ‘Markets fail; let’s use government.’ And at George Mason, we say, ‘Markets fail; let’s use markets.’” This seeming paradox means, that GMU sees plenty of deviations from the “perfect neoclassical paradigm,” which requires “perfect information, perfect competition,” but that unlike Harvard or MIT, they do not automatically “ring a bell and say, ‘We need more government.’ Markets come up with solutions to problems of information.”

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