 Market Prices in the Anthropocene AgeChapter Chapter 6 in The Quality of Society, Volume II, 2021, pp 111-139 from Springer Abstract: Abstract Economics is the science of scarcity. According to the standard market model of neoclassical theory, market prices tend to reflect real scarcity under capitalism. Competition leads to that result. Is this claim true under the Anthropocene age, in which natural resources are degrading through depletion and pollution? In order to answer this question, this essay presents a market model of the unified theory of capitalism. The two market models are compared on assumptions and empirical predictions. Facts tend to be consistent with the predictions of the unified theory model and refute those of the neoclassical model. On epistemological grounds, unified theory explanation is superior. Therefore, market prices do not provide society with the correct signals about real scarcity. The results are used to clarify some usual misconceptions about the role of the market system in the functioning of capitalism. Keywords: Anthropocene age; Degradation costs; Extraction costs; Market institution; Market power; Pollution; Natural resources scarcity; Neoclassical market theory; Non-Walrasian markets; Unified theory of capitalism (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-79565-8_6 Ordering information: This item can be ordered from DOI: 10.1007/978-3-030-79565-8_6 Access Statistics for this chapter More chapters in Springer Books from Springer |
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