The market brings together the producer and the consumer of a product. The product is produced by an entrepreneur but is consumed by another. At the end of a production process, the product is an unneeded free good; it can be a real economic good again only if it leaves that domain and enters another, where it is required for consumption. The common property over the products makes such transfer possible. The circulation of products between the private property spheres of production and consumption presents the market by transforming the products into commodities.
Historical Backdrop
• LUIS DE MOLINA On Justice and Law: free market.
• ADAM SMITH The Wealth of Nations: commercial society.
• JOHN COMMONS Institutional Economics: bargaining transaction.
• RONALD COASE The Nature of the Firm: entrepreneur and manager.
• HERBERT SIMON Organizations and Markets: coordination by adjustment of quantities.