Incentive provision and coordination as market functions

Artikel

The market has both a coordination function and an incentive function. The first theorem of welfare economics is all about coordination; the principal-agent model is all about incentives. What is the relative importance of the market in carrying out these two functions? While there has been a shift in economic theory in the past thirty years from emphasizing the coordination role to emphasizing the incentive role, it is not clear whether this reflects a new and deeper understanding of the market. Understanding the market's functions, in real economies, may be key for understanding the degree to which redistribution in them is feasible.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research ; ISSN: 2510-5027 ; Volume: 43 ; Year: 2010 ; Issue: 1 ; Pages: 6-16 ; Heidelberg: Springer

Classification and Topics

• Classification: Wirtschaft ; Labor Economics: General ; Microeconomic Behavior: Underlying Principles ; Distribution: General ; General Equilibrium and Disequilibrium: General
• Subject: Anreizsystem ; Markttheorie ; Beruf ; Lohn ; Gleichgewichtstheorie ; Umverteilung

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Roemer, John E.
• Event: Veröffentlichung
• (who): Springer
• (where): Heidelberg
• (when): 2010

Further information

• DOI: doi:10.1007/s12651-010-0027-5
• Handle: http://hdl.handle.net/10419/158715
• Last update: 10.03.2025, 11:45 AM CET