Economic ethics in the market economy
pp. 169-183
Abstract
The concept of mechanics and general equilibrium theory in economics is an analogy that has led, besides other misunderstandings, to the mistake that the coordination of the market and the equilibrium process of the price system do not need ethics, but instead lead to the economic optimum without it. The possibility and necessity of a theory of economic ethics in the market economy is rejected with the argument that decision room for the economic-ethical demands and maxims necessary for the acting person, whether manager or employee, exists only in a market that is monopolized or oligopolized, but not in a market with perfect competition. In a truly competitive market, the acting person has no room for ethical considerations, but also has no need of ethics, because the pressure of competition already compels him or her to economically-correct actions. Correct actions consist only in adapting to the decision variables of the acting person in the existing market conditions, in price taking with existing market price and the expansion of production until market price is equal to marginal cost.
Publication details
Published in:
Koslowski Peter (2001) Principles of ethical economy. Dordrecht, Springer.
Pages: 169-183
DOI: 10.1007/978-94-010-0956-0_8
Full citation:
Koslowski Peter (2001) Economic ethics in the market economy, In: Principles of ethical economy, Dordrecht, Springer, 169–183.