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Private Governance and the Pricing of Political Enterprises

Author

Listed:
  • Furton Glenn L.

    (Department of Agricultural and Applied Economics, Texas Tech University, Lubbock, TX 79410, USA)

  • Salter Alexander William

    (Rawls College of Business, Texas Tech University, Lubbock, TX 79410, USA)

Abstract

Austrian economists are perhaps most well-known for developing the theory of the market process – how producers and consumers, guided by market prices, are able to coordinate their actions over time. In this paper we extend Austrian insights to the provision of fundamental governance goods. It is typically thought that such goods, because of their publicness, cannot be provided by market mechanisms. We argue orthodox public finance and political economy is mistaken in this regard. The market process applied to governance goods, which we call political pricing¸ is capable of creating governance environments conducive to a high degree of social cooperation under the division of labor. We highlight some problems with orthodox public finance and political economy approaches, theoretically develop a market process approach to governance, and discuss two examples of such mechanisms in creating wealth.

Suggested Citation

  • Furton Glenn L. & Salter Alexander William, 2017. "Private Governance and the Pricing of Political Enterprises," Journal of Business Valuation and Economic Loss Analysis, De Gruyter, vol. 12(s1), pages 1-9, July.
    • Handle: RePEc:bpj:jbvela:v:12:y:2017:i:s1:p:9:n:1
    DOI: 10.1515/jbvela-2016-0013
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    References listed on IDEAS

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    More about this item

    Keywords

    Austrian economics; Dubai; market process; political pricing; private governance; Singapore;
    All these keywords.

    JEL classification:

    • B53 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Austrian
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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