Elinor Ostrom Free Market

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Throughout the semester, we have been reading many different economic theories overlapping with discussions on human morality, rationality, and the biggest question, the relationship between the market, individual freedom, and state control. Theories ranged from the classical free market by Adam Smith to the argument against the free market by Karl Marx. In her essay, “Beyond Markets and States: Polycentric Governance of Complex Economic Systems,” Elinor Ostrom suggests there is more than the dichotomy narrative in economics—that is, the free market and the state-controlled economy. Although Ostrom suggests that capitalism nor state control is the answer and a polycentric approach is, her examples actually point back to what a free market intends on allowing and doing—that is, giving the …show more content…
Based on this text, she seems to be arguing for, or even supporting a free market system. It may be a more complex system, with various moving components, but nonetheless at its core, it's a free market. There are two parts to how she argues this. One, there is actual date that supports a free market, but also the philosophical themes of her examples point to a free market. The hard date she points out, taking two years to compile, highlighted how 12 irrigation system ran by governmental agencies only had 40 percent of them perform high. Meanwhile, the 25 farm-managed had over 70 percent perform high. There no government-managed inshore fishery groups and 11 were not organized in any way. The other 33 subgroups had informal rules defining who was allowed to fish in that particular location and how harvesting was restricted. Based on these numbers alone, the answer is clear. Let the individual decide what to do. This is a fundamental principle of the free market. In this case, the numbers back up on theory. However, there is more. The most interesting evidence in support comes from the
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