Extending the Analysis of Spontaneous Market Order to Governance

How much do markets depend on the state? The founders of the Austrian School of Economics saw a lot of room for markets but believed that government rules and regulations are needed to create framework for markets. More recent research, however, has shown that rules and regulations underpinning some of the most advanced markets such as stock markets have emerged from the market. This article discusses how Austrian economic insights about the importance of competition (although not atomistic competition), entrepreneurship, and consumer sovereignty can be applied to governance itself. Copyright International Atlantic Economic Society 2014