These columns will come from various members of the Western New Mexico University School of Business faculty.
In the introduction to this series, the characteristics of a free market according to classic economic theory under a capitalist economy were summarized briefly.
• A free market has a sufficient number of competitors, such that a single seller (or small group of colluding competitors) is unable to control the market price of the product or service.
• Businesses compete for customers with other providers of similar products using price, quality, product features, convenience or features to differentiate their product and attract buyers.
• Buyers have enough information about the different products available (price, quality, unique features) to make an informed decision about what best suits their needs and are free to not buy at all.
Adam Smith, the 18th century philosopher and economist, is often cited as the father of modern capitalism. As a system for organizing society, Smith’s interpretation of capitalism holds that the “invisible hand” of the free market will always and efficiently balance demand with supply through the collective market behavior of many buyers and sellers. From the birth of our democracy forward, Americans have embraced capitalism and enlightened self-interest as an essential guiding principal of self-governance; enshrined in the Declaration of Independence, the U.S. Constitution and generally unquestioned as central to the rights of citizens in a free society. As our elected representatives wrestle with the next iteration of modern healthcare regulation, it is instructive to review how Smith’s theory of the free market might inform policy related to the many markets that comprise the healthcare industrial complex.
By Chip Campbell
Assistant Professor of Marketing
School of Business
Western New Mexico University
What are the essential tools for effective business communications? I remember back when my son had friends over to hang out years ago, and how nervous I got as a parent because it was so quiet. So when I decided to investigate by pretending to get some water, I was amazed that they were all sitting around playing multiple video games and texting each other at the same time without saying a word? I just could not imagine how they shared information without any kind of verbal or non-verbal communication being offered.