thurd Wrote:I believe in a free market, you cannot say his service is overpriced if there are customers willing to pay that money for it. You might question his business sense (cheaper=more customers) but we also don't know if its at all sustainable for him to handle more clients.
thurd Wrote:free market has little to do with you being able to voice your concerns for the price
First of all, I didn't say that criticizing products and their prices was what makes an economy a free-market economy. The degree of influence from the state is what defines an economy as free, controlled, or mixed.
But the whole idea behind laissez-faire economics is that prices and products will ultimately end up approximating the desires, habits, and demands of the public. Part of the way that ends up happening is by a discussion by the public about the merits of different businesses and services. That is EXACTLY what we are doing here--it's an integral part of making laissez-faire economics work even if it isn't what determines whether or not you call a market free or not.
(As for criticism of a product being unrelated to the type of market, for example, you could criticize the Post Office in America even though it is state-owned and therefore not part of the free market. You could theoretically also have a free market system in a country without free speech and strict laws about talking about products, although it would be an awfully weird way of doing things)
Since free-market economies are so closely related to the concept of laissez-faire economics, it's ridiculous to say that "you cannot say his service is overpriced if there are customers willing to pay that money for it."
Basically, what you're doing is defining the appropriate price of a product as what people are willing to pay for the product. What you're missing is that ultimately the price people are willing to pay for a product is determined by a process of consumers deciding the worth of a product, and that part of this process is a discussion of the appropriate price. That's what we're doing. You could only make the claim you are making in a strictly academic sense, looking at the process from afar. But we're not looking at this in an academic sense, we're actively participating in the market.
Edited: 2011-08-29, 1:09 am