"Consider a real estate developer with a few hundred acres at his disposal. He can do one of two things. First, build all the homes, stores, recreation centers, office towers, etc., that he intends to construct, worrying not at all about how any of these long thin things will serve his clients. He will allow the new owners to make contracts with all of those providers on their own accounts. Second, he will first contract with the firms that provide gas, electricity, water, sewage, telephone, roads, postal delivery, garbage collection, etc., one of each, and have all of these long thin things arranged before he digs his first foundation for any of the buildings. Then, he will sell the homes, factories, stores to their new owners, with a side order condition: they have to accept the providers of the long thin things with whom he has contracted."Market actors will make decisions that make sense including agreeing to collective action to meet their common demands.
Monday, September 03, 2012
Misc
There is a great misunderstanding between collectivists and libertarians regarding collective action. Collectivists tend to think that collection action is impossible in a free society. That's baloney. In a free society, individuals are free to enjoin each other in voluntary, collective action via contracts. Regarding the delivery of power, electric, water, telephone and other utilities, Walter Block explains:
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