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The Market, the State and the Monkey in the Middle

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Profit versus regulationIn Economics for the Common Good, Noble laureate Jean Tirole describes the efficient and effective running of the economy.  The market operates in order to make a profit; the state regulates the market in order to insure that the population is well served and, in particular, to avoid monopolies and price fixing in the market.  Pro-business conservatives will complain about and protest over-regulation, the interference of the state in the market, administrative red tape and taxation which stifle and hamstring businesses from innovating, expanding and making a profit. Pro-state socialists and liberals will complain about and protest under-regulation, the failure of the state to control companies who, in their greed for profit, damage the environment, break or corrupt the law, and undermine the health and welfare of the population.  


"Game theory" and "cognitive bias"Tirole's claim to fame is the application of game theory to economics.  …